The 10-second takeaway
For the quarter ended Dec. 30 (Q4), URS missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew slightly, and GAAP earnings per share dropped significantly.
Gross margin dropped, operating margin expanded, and net margin shrank.
URS chalked up revenue of $2.39 billion. The 14 analysts polled by S&P Capital IQ foresaw revenue of $2.54 billion on the same basis. GAAP reported sales were 0.6% higher than the prior-year quarter's $2.38 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.89. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.99 per share on the same basis. GAAP EPS of $0.37 for Q4 were 51% lower than the prior-year quarter's $0.75 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 5.7%, 720 basis points worse than the prior-year quarter. Operating margin was 4.8%, 60 basis points better than the prior-year quarter. Net margin was 1.2%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.51 billion. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $10.39 billion. The average EPS estimate is $4.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 247 members the stock outperform and 14 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give URS a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on URS is outperform, with an average price target of $43.53.
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