URS
The 10-second takeaway
For the quarter ended Sep. 28 (Q3), URS met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew.
Gross margins dropped, operating margins contracted, net margins expanded.
Revenue details
URS reported revenue of $2.95 billion. The 12 analysts polled by S&P Capital IQ anticipated sales of $2.97 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $2.47 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.28. The 12 earnings estimates compiled by S&P Capital IQ forecast $1.16 per share. GAAP EPS were $1.43 for Q3 versus -$8.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 6.6%, 30 basis points worse than the prior-year quarter. Operating margin was 5.8%, 40 basis points worse than the prior-year quarter. Net margin was 3.6%, 2,880 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $3.00 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $11.02 billion. The average EPS estimate is $4.31.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 242 members out of 255 rating the stock outperform, and 13 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give URS a green thumbs-up, and one 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 $49.50.
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