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AECOM (ACM) to Exit Russia, Retains 2022 & Long-Term View
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AECOM (ACM - Free Report) plans to exit its business operations in Russia in response to “Russia’s unlawful invasion” to Ukraine, according to Troy Rudd, AECOM’s chief executive officer.
Shares of AECOM have declined 1.4% during the trading session on Mar 7, 2022.
Troy also added that the company’s latest move will not be material as far as the financial contribution to AECOM from its Russian business is concerned.
This infrastructure consulting firm intends to impair the assets of its Russia-related unit and anticipates incurring a one-time pre-tax expense of $40 million to $50 million in the fiscal second quarter. This impact will be excluded from adjusted earnings. The cash impact from this move is expected to approximate $10 million.
Meanwhile, AECOM reiterated its current fiscal year expectations as well as long-term fiscal 2024 financial targets. Investors should note that during its first-quarter fiscal 2022 earnings call, AECOM provided expectations for fiscal 2022, which calls for adjusted earnings per share (EPS) in the range of $3.30-$3.50. This indicates a 21% adjusted EPS improvement at the mid-point of the guidance from fiscal 2021 levels. The company anticipates segment adjusted operating margin of 14.1%.
AECOM also expects adjusted EBITDA guidance in the range of $880-$920 million, indicating 8% year-over-year growth at the midpoint. The company anticipates free cash flow in the range of $450-$650 million, with first-half cash flow to exceed the cash flow level in the year-ago period.
Meanwhile, AECOM’s long-term financial targets for fiscal 2024 comprise an expectation to deliver adjusted EPS of $4.75, a 15% segment adjusted operating margin, and a long-term segment adjusted operating margin target of 17%.
Share Price Performance
Image Source: Zacks Investment Research
Coming to share-price performance, this Zacks Rank #2 (Buy) company’s shares have gained 16.5% in the past year, outperforming the industry’s 10.7% rise. Earnings for fiscal 2022 are expected to grow 20.6% year over year. Earnings estimates have gone 3% up over the past 30 days, depicting analysts’ optimism over the company’s prospects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Top-Ranked Stocks in the Construction Sector
James Hardie Industries plc (JHX - Free Report) currently sports a Zacks Rank #1. James Hardie’s shares have gained 5.7% in the past year.
JHX’s earnings are expected to rise 37.9% in fiscal 2022.
Simpson Manufacturing Co., Inc. (SSD - Free Report) currently carries a Zacks Rank #1. Simpson Manufacturing’s shares have increased 9.4% in the past year.
SSD’s earnings for 2022 are expected to rise 5.9%.
Owens Corning (OC - Free Report) currently carries a Zacks Rank #2. Owens Corning’s shares have declined 2% in the past year. Earnings estimates for 2022 have moved up 10.3% over the past 30 days, depicting analysts’ optimism over the company’s prospects.
Earnings for OC are expected to increase 14.2% in 2022.
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AECOM (ACM) to Exit Russia, Retains 2022 & Long-Term View
AECOM (ACM - Free Report) plans to exit its business operations in Russia in response to “Russia’s unlawful invasion” to Ukraine, according to Troy Rudd, AECOM’s chief executive officer.
Shares of AECOM have declined 1.4% during the trading session on Mar 7, 2022.
Troy also added that the company’s latest move will not be material as far as the financial contribution to AECOM from its Russian business is concerned.
This infrastructure consulting firm intends to impair the assets of its Russia-related unit and anticipates incurring a one-time pre-tax expense of $40 million to $50 million in the fiscal second quarter. This impact will be excluded from adjusted earnings. The cash impact from this move is expected to approximate $10 million.
Meanwhile, AECOM reiterated its current fiscal year expectations as well as long-term fiscal 2024 financial targets. Investors should note that during its first-quarter fiscal 2022 earnings call, AECOM provided expectations for fiscal 2022, which calls for adjusted earnings per share (EPS) in the range of $3.30-$3.50. This indicates a 21% adjusted EPS improvement at the mid-point of the guidance from fiscal 2021 levels. The company anticipates segment adjusted operating margin of 14.1%.
AECOM also expects adjusted EBITDA guidance in the range of $880-$920 million, indicating 8% year-over-year growth at the midpoint. The company anticipates free cash flow in the range of $450-$650 million, with first-half cash flow to exceed the cash flow level in the year-ago period.
Meanwhile, AECOM’s long-term financial targets for fiscal 2024 comprise an expectation to deliver adjusted EPS of $4.75, a 15% segment adjusted operating margin, and a long-term segment adjusted operating margin target of 17%.
Share Price Performance
Image Source: Zacks Investment Research
Coming to share-price performance, this Zacks Rank #2 (Buy) company’s shares have gained 16.5% in the past year, outperforming the industry’s 10.7% rise. Earnings for fiscal 2022 are expected to grow 20.6% year over year. Earnings estimates have gone 3% up over the past 30 days, depicting analysts’ optimism over the company’s prospects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Top-Ranked Stocks in the Construction Sector
James Hardie Industries plc (JHX - Free Report) currently sports a Zacks Rank #1. James Hardie’s shares have gained 5.7% in the past year.
JHX’s earnings are expected to rise 37.9% in fiscal 2022.
Simpson Manufacturing Co., Inc. (SSD - Free Report) currently carries a Zacks Rank #1. Simpson Manufacturing’s shares have increased 9.4% in the past year.
SSD’s earnings for 2022 are expected to rise 5.9%.
Owens Corning (OC - Free Report) currently carries a Zacks Rank #2. Owens Corning’s shares have declined 2% in the past year. Earnings estimates for 2022 have moved up 10.3% over the past 30 days, depicting analysts’ optimism over the company’s prospects.
Earnings for OC are expected to increase 14.2% in 2022.