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Aecom (ACM) Up 0.1% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Aecom Technology (ACM - Free Report) . Shares have added about 0.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Aecom due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
AECOM reported fourth-quarter fiscal 2021 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate.
Troy Rudd, AECOM’s chief executive officer, said, “Demand for our technical, advisory and program management capabilities is increasing against a backdrop of an improving funding environment, highlighted by the recent passing of the federal infrastructure bill in the U.S., and rising demand for ESG-related services, which underpins our expectation for accelerating revenue growth in fiscal 2022 and continued margin, adjusted EBITDA and adjusted EPS growth.”
Delving Deeper
Adjusted earnings per share of 81 cents topped the consensus mark of 80 cents by 1.3% and grew 35% year over year. Revenues of $3,353.8 million beat the Zacks Consensus Estimate by 0.6% but declined 6% year over year. Yet, net service revenues or NSR grew 6% for the quarter. This marked the third consecutive quarter of accelerating organic NSR growth.
Segment Details
Americas revenues of $2,582.2 million were down 5.5% from the year-ago level. Net service revenues or NSR of $919.8 million for the quarter gained 7% year over year (comparisons are adjusted to exclude the benefit of an extra week in fourth-quarter fiscal 2020), reflecting growth of the Design business and double-digit improvement of the Construction Management business. Adjusted operating income of $183 million was up 16% year over year. Adjusted operating margin (on an NSR basis) also expanded 290 basis points or bps (marking the best quarterly performance). This upside reflected the benefits of the actions taken to boost margins, and investments in technology, shared service centers as well as design centers to improve project delivery efficiencies.
International revenues dropped 7.2% on a year-over-year basis to $771.2 million. On a constant-currency organic basis, NSR increased 6% from a year ago to $619 million for the quarter. Adjusted operating income in the segment rose 12% year on year to $46 million. Adjusted operating margin (on an NSR basis) also jumped 90 bps to 7.4%. Actions taken to improve margins included investments in the business to enable more efficient delivery and strong execution.
Operating Highlights
Adjusted segment operating margin for the quarter amounted to 14.8%, up 210 bps from the year-ago level. Adjusted EBITDA also grew 10% year over year to $225 million.
At fiscal 2021-end, the company’s total backlog was $38.6 billion, down from the prior-year figure of $41.2 billion. The backlog level included 18% contracted backlog growth, with increases in both Design and Construction Management businesses.
Fiscal 2021 Highlights
Adjusted earnings per share of $2.82 grew 31% year over year. Revenues of $13,341 million also increased 1% year over year. NSR grew 1% for the quarter. Adjusted segment operating margin for the year amounted to 13.8%, up 150 bps from the year-ago level. Adjusted EBITDA also grew 11% year over year to $830 million.
Liquidity & Cash Flow
As of Sep 30, 2021, AECOM’s cash and cash equivalents totaled $1,229.2 million, down from $1,708.3 million at fiscal 2020-end.
As of fiscal 2021-end, total debt (excluding unamortized debt issuance cost) was $2,235.7 million, up from $2,085 million at fiscal 2020-end. The company had $1.145 billion in unused capacity under the revolving credit facility.
Fiscal 2022 Guidance
Adjusted EPS is expected in the range of $3.20-$3.40. This indicates a 17% adjusted EPS improvement at the mid-point of the guided range. The Zacks Consensus Estimate for fiscal 2022 earnings is currently pegged at $3.20 per share.
AECOM also expects adjusted EBITDA guidance in the range of $880-$920 million, indicating 8% year-over-year growth at midpoint. The company anticipates free cash flow in the range of $450-$650 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 8.45% due to these changes.
VGM Scores
Currently, Aecom has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Aecom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Aecom (ACM) Up 0.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Aecom Technology (ACM - Free Report) . Shares have added about 0.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Aecom due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
AECOM (ACM - Free Report) Q4 Earnings & Revenues Beat Estimates
AECOM reported fourth-quarter fiscal 2021 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate.
Troy Rudd, AECOM’s chief executive officer, said, “Demand for our technical, advisory and program management capabilities is increasing against a backdrop of an improving funding environment, highlighted by the recent passing of the federal infrastructure bill in the U.S., and rising demand for ESG-related services, which underpins our expectation for accelerating revenue growth in fiscal 2022 and continued margin, adjusted EBITDA and adjusted EPS growth.”
Delving Deeper
Adjusted earnings per share of 81 cents topped the consensus mark of 80 cents by 1.3% and grew 35% year over year. Revenues of $3,353.8 million beat the Zacks Consensus Estimate by 0.6% but declined 6% year over year. Yet, net service revenues or NSR grew 6% for the quarter. This marked the third consecutive quarter of accelerating organic NSR growth.
Segment Details
Americas revenues of $2,582.2 million were down 5.5% from the year-ago level. Net service revenues or NSR of $919.8 million for the quarter gained 7% year over year (comparisons are adjusted to exclude the benefit of an extra week in fourth-quarter fiscal 2020), reflecting growth of the Design business and double-digit improvement of the Construction Management business. Adjusted operating income of $183 million was up 16% year over year. Adjusted operating margin (on an NSR basis) also expanded 290 basis points or bps (marking the best quarterly performance). This upside reflected the benefits of the actions taken to boost margins, and investments in technology, shared service centers as well as design centers to improve project delivery efficiencies.
International revenues dropped 7.2% on a year-over-year basis to $771.2 million. On a constant-currency organic basis, NSR increased 6% from a year ago to $619 million for the quarter. Adjusted operating income in the segment rose 12% year on year to $46 million. Adjusted operating margin (on an NSR basis) also jumped 90 bps to 7.4%. Actions taken to improve margins included investments in the business to enable more efficient delivery and strong execution.
Operating Highlights
Adjusted segment operating margin for the quarter amounted to 14.8%, up 210 bps from the year-ago level. Adjusted EBITDA also grew 10% year over year to $225 million.
At fiscal 2021-end, the company’s total backlog was $38.6 billion, down from the prior-year figure of $41.2 billion. The backlog level included 18% contracted backlog growth, with increases in both Design and Construction Management businesses.
Fiscal 2021 Highlights
Adjusted earnings per share of $2.82 grew 31% year over year. Revenues of $13,341 million also increased 1% year over year. NSR grew 1% for the quarter. Adjusted segment operating margin for the year amounted to 13.8%, up 150 bps from the year-ago level. Adjusted EBITDA also grew 11% year over year to $830 million.
Liquidity & Cash Flow
As of Sep 30, 2021, AECOM’s cash and cash equivalents totaled $1,229.2 million, down from $1,708.3 million at fiscal 2020-end.
As of fiscal 2021-end, total debt (excluding unamortized debt issuance cost) was $2,235.7 million, up from $2,085 million at fiscal 2020-end. The company had $1.145 billion in unused capacity under the revolving credit facility.
Fiscal 2022 Guidance
Adjusted EPS is expected in the range of $3.20-$3.40. This indicates a 17% adjusted EPS improvement at the mid-point of the guided range. The Zacks Consensus Estimate for fiscal 2022 earnings is currently pegged at $3.20 per share.
AECOM also expects adjusted EBITDA guidance in the range of $880-$920 million, indicating 8% year-over-year growth at midpoint. The company anticipates free cash flow in the range of $450-$650 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 8.45% due to these changes.
VGM Scores
Currently, Aecom has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Aecom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.