The 10-second takeaway
For the quarter ended March 31 (Q2), AECOM Technology missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped.
Margins contracted across the board.
AECOM Technology reported revenue of $2.01 billion. The nine analysts polled by S&P Capital IQ foresaw a top line of $2.06 billion on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $1.94 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.43. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. GAAP EPS of $0.43 for Q2 were 12% lower than the prior-year quarter's $0.49 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 3.8%, 140 basis points worse than the prior-year quarter. Operating margin was 2.8%, 110 basis points worse than the prior-year quarter. Net margin was 2.4%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.12 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $8.50 billion. The average EPS estimate is $2.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 573 members out of 590 rating the stock outperform, and 17 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give AECOM Technology 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 AECOM Technology is outperform, with an average price target of $27.77.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.