Stantec Inc.’s (STN - Free Report) first-quarter 2023 earnings met the Zacks Consensus Estimate while revenues beat.
However, the earnings meet didn’t impress investors as the stock fell 5.3% since the release of financial numbers on May 10.
Adjusted earnings matched the Zacks Consensus Estimate of 54 cents per share and improved 12.5% from the year-ago figure.
Total revenues of $909 million surpassed the consensus estimate by 6.3% and increased 9.7%% on a year-over-year basis. The top line includes 12.2% organic growth and 1.4% gain from acquisitions.
Quarter Details
The project margin of $660 million increased 16.4% from the year-ago figure. Project margin, as a percentage of net revenues, was 53.7%.
Adjusted EBITDA grew 17.7% to $179.1 million on a year-over-year basis. Adjusted EBITDA margin was 14.6%, expanded 10 basis points from the previous-year figure.
The backlog increased to $6.2 billion, up 14.8% from the year-ago quarter. The figure marked an increase of 5.6% from the Dec 31, 2022, figure.
Stantec generated $36.7 million in cash from operating activities in the quarter.
Reposts 2023 outlook
The company expects net revenues to rise 7-11% in the year compared with 2022 levels.
Adjusted EBITDA margin is expected in the band of 16-17%. STN targets to generate a return on invested capital of more than 10.5%.
Stantec currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimate by 11.4%. EPS increased 12.2% year over year.
Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Equifax (EFX - Free Report) also reported better-than-expected first-quarter 2023 results.
EFX’s adjusted earnings of $1.43 per share beat the consensus mark by 4.4%. However, the bottom line declined 35.6% from the year-ago figure.
Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.
ManpowerGroup (MAN - Free Report) reported lower-than-expected first-quarter 2023 results.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.
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Stantec Inc.’s (STN - Free Report) first-quarter 2023 earnings met the Zacks Consensus Estimate while revenues beat.
However, the earnings meet didn’t impress investors as the stock fell 5.3% since the release of financial numbers on May 10.
Adjusted earnings matched the Zacks Consensus Estimate of 54 cents per share and improved 12.5% from the year-ago figure.
Total revenues of $909 million surpassed the consensus estimate by 6.3% and increased 9.7%% on a year-over-year basis. The top line includes 12.2% organic growth and 1.4% gain from acquisitions.
Quarter Details
The project margin of $660 million increased 16.4% from the year-ago figure. Project margin, as a percentage of net revenues, was 53.7%.
Adjusted EBITDA grew 17.7% to $179.1 million on a year-over-year basis. Adjusted EBITDA margin was 14.6%, expanded 10 basis points from the previous-year figure.
The backlog increased to $6.2 billion, up 14.8% from the year-ago quarter. The figure marked an increase of 5.6% from the Dec 31, 2022, figure.
Stantec generated $36.7 million in cash from operating activities in the quarter.
Reposts 2023 outlook
The company expects net revenues to rise 7-11% in the year compared with 2022 levels.
Adjusted EBITDA margin is expected in the band of 16-17%. STN targets to generate a return on invested capital of more than 10.5%.
Stantec currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimate by 11.4%. EPS increased 12.2% year over year.
Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Equifax (EFX - Free Report) also reported better-than-expected first-quarter 2023 results.
EFX’s adjusted earnings of $1.43 per share beat the consensus mark by 4.4%. However, the bottom line declined 35.6% from the year-ago figure.
Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.
ManpowerGroup (MAN - Free Report) reported lower-than-expected first-quarter 2023 results.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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