Stantec Inc.’s (STN - Free Report) third-quarter 2022 earnings matched the Zacks Consensus Estimate and revenues beat the same.
The stock has declined 2.2% since the earnings release on Nov 10 as the company failed to beat on earnings. Quarterly earnings came in at 67 cents per share, which increased 17.5% year over year.
Revenues of $889.3 million surpassed the consensus mark by 1.4% and increased 20% year over year. The top line includes the favorable impact of 11% organic growth and 12.9% from acquisitions.
Stantec shares have declined 12.3% over the past year compared with the 16.8% decline of the industry it belongs to.
Stantec Inc. Price
Stantec Inc. price | Stantec Inc. Quote
Other Quarterly Details
Project margin increased 23.7% year over year to $627 million on the back of higher net revenues. Project margin, as a percentage of net revenues, came in at 54.1%, down 20 basis points (bps) year over year. Contract backlog came at a record high of $6.2 billion. Adjusted EBITDA grew 23.9% year over year to $193.3 million. Adjusted EBITDA margin came in at 16.7%, flat with the prior-year quarter.
Stantec generated $93.1 million of cash from operating activities in the quarter. Capital expenditures were $20.1 million. During the reported quarter, the company paid $19.9 million through dividends.
2022 Outlook
Stantec expects 2022 adjusted EPS growth of 22-26% and net revenue growth of 18-22%. The company anticipates the adjusted EBITDA margin to be between 15.3% and 16.3% and the adjusted return on invested capital to be more than 10%.
Stantec currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
Stantec Inc.’s (STN - Free Report) third-quarter 2022 earnings matched the Zacks Consensus Estimate and revenues beat the same.
The stock has declined 2.2% since the earnings release on Nov 10 as the company failed to beat on earnings. Quarterly earnings came in at 67 cents per share, which increased 17.5% year over year.
Revenues of $889.3 million surpassed the consensus mark by 1.4% and increased 20% year over year. The top line includes the favorable impact of 11% organic growth and 12.9% from acquisitions.
Stantec shares have declined 12.3% over the past year compared with the 16.8% decline of the industry it belongs to.
Stantec Inc. Price
Stantec Inc. price | Stantec Inc. Quote
Other Quarterly Details
Project margin increased 23.7% year over year to $627 million on the back of higher net revenues. Project margin, as a percentage of net revenues, came in at 54.1%, down 20 basis points (bps) year over year. Contract backlog came at a record high of $6.2 billion. Adjusted EBITDA grew 23.9% year over year to $193.3 million. Adjusted EBITDA margin came in at 16.7%, flat with the prior-year quarter.
Stantec generated $93.1 million of cash from operating activities in the quarter. Capital expenditures were $20.1 million. During the reported quarter, the company paid $19.9 million through dividends.
2022 Outlook
Stantec expects 2022 adjusted EPS growth of 22-26% and net revenue growth of 18-22%. The company anticipates the adjusted EBITDA margin to be between 15.3% and 16.3% and the adjusted return on invested capital to be more than 10%.
Stantec currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
Get the latest research report on OMC - FREE
Get the latest research report on IPG - FREE
Get the latest research report on EFX - FREE
Get the latest research report on STN - FREE