Back to top

Analyst Blog

Shares of Stantec Inc. (STN - Snapshot Report) have increased 5.3% since it reported a 34% year-on-year rise in third quarter earnings to 98 cents per share on Oct 31. The company reported better-than-expected top-line and bottom-line results for third-quarter 2013. The reported figure exceeded the Zacks Consensus Estimate of 78 cents by 25.6%.

Earnings for this professional consulting service were primarily aided by top-line growth and increased activity in the company’s Environment, Industrial as well as Transportation practice areas.

Revenues

Gross revenue jumped 21.3% year over year to $ 559.3 million (CAD 581.2 million) in the reported quarter, beating the Zacks Consensus Estimate of $449 million. Organic revenue growth was 10.1% in the reported quarter.

Stantec’s Environment and Industrial practice areas performed well in the quarter led by a strong oil and gas sector. Moreover, the company received major export pipelines contracts across Canada, which is expected to boost its revenues in upcoming quarters as well.

The company’s Transportation sector received a boost from key acquisitions and contract wins, including a construction contract for designing the Westside Subway Transit Corridor-one of the most regionally significant infrastructure programs in southern California.

Margins                                                       

Gross margins in the quarter remained almost flat at 45.2% compared with 45.6% in the year-ago quarter. The company’s operating profit jumped 34% year over year in the reported quarter. However, the company’s operating profit margin crept up 102 basis points to 10.75% in the quarter.

Stantec also declared a dividend of 16.5 cents per share, which will be paid on Jan 16, 2014, to shareholders of record date Dec 31, 2013.

Stantec currently carries a Zacks Rank #3 (Hold). Some better-placed stocks in the Business Services industry are CoreLogic, Inc. (CLGX - Snapshot Report), Exponent Inc. (EXPO - Snapshot Report) and Huron Consulting Group Inc. (HURN - Snapshot Report) and. While Huron and Exponent both carry a Zacks Rank #2 (Buy), CoreLogic has a Zacks Rank #1 (Strong Buy).

Note: CAD 1 = $0.9624 (period average from Jul 1, 2013 to Sep 30, 2013)

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%