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AECOM (ACM) JV Wins Contract to Upgrade NY Water Infrastructure
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AECOM’s (ACM - Free Report) joint venture (“JV”) has been selected by the New York City Department of Environmental Protection (“NYCDEP”) to offer inspection services for the Kensico – Eastview Connection project.
Per the deal, the JV will supervise three concurrent teams to connect the Kensico Reservoir to the Catskill-Delaware Ultra Violet Disinfection Facility in Eastview, NY, for water supply.
The first team will oversee the delivery of the 2-mile-deep tunnel. The second team will focus on the build-out of new facilities and connection to the tunnels from the new and existing Catskill-Delaware Ultra Violet facility in Eastview. The third team will stabilize the shoreline during delivery and provide wetlands mitigation adjacent to the Kensico Reservoir.
The project is part of NYCDEP’s efforts to upgrade and modernize the city’s aging water supply infrastructure.
AECOM’s global water business expertise positions it to help ensure that one of the world’s largest urban water systems continues to deliver clean, safe and reliable drinking water.
Solid High-Margin, Low-Risk Professional Services Business
AECOM is a leading solutions provider, supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and environmental, energy and water businesses.
The demand for ACM’s technical, advisory and program management capabilities is increasing due to an improving funding environment, highlighted by the recent passing of the federal infrastructure bill in the United States and the rising demand for ESG-related services.
Image Source: Zacks Investment Research
In the past three months, shares of the company have risen 16.6% compared with the Zacks Engineering - R and D Services industry’s 14.7% growth.
AECOM’s fourth-quarter fiscal 2023 earnings increased 13.5% on a year-over-year basis. Revenues also improved 12% from the prior year. Adjusted net service revenues (“NSR”) — defined as revenues excluding subcontractor and other direct costs — moved up 8%. The design business contributed 90% to the total NSR and recorded year-over-year growth of 8%. Adjusted EBITDA also rose 10% year over year.
As of the fiscal fourth quarter's end, the total backlog came in at $41.17 billion compared with $40.18 billion reported in the prior year. The current backlog level includes 54.8% contracted backlog growth. The record-high 12.7% growth in the design business backlog (on a constant-currency basis) indicates solid quarterly wins and a pipeline of opportunities.
For fiscal 2024, the company anticipates generating 8-10% organic NSR growth.
Zacks Rank & Key Picks
AECOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks that warrant a look in the sector are as follows:
Dream Finders Homes’ earnings per share (EPS) estimates for 2024 have increased to $2.81 from $2.62 over the past 60 days. This Jacksonville, FL-based homebuilder has been benefiting from the strategy of focusing on managing construction times and increasing inventory turnover.
PulteGroup, Inc. (PHM - Free Report) presently carries a Zacks Rank #2 (Buy). The company is benefiting from its operating model, which strategically aligns the production of build-to-order and quick-move-in homes with applicable demand across consumer groups.
PulteGroup’s EPS estimates for 2024 have increased to $11.37 from $11.30 over the past 60 days.
Howmet Aerospace, Inc. (HWM - Free Report) is a global manufacturer of engineered products serving the aerospace, defense and commercial transportation industries. The company is expected to benefit from higher aircraft production rates and the ease of supply chains in the transportation market.
Howmet Aerospace currently carries a Zacks Rank #2. HWM’s EPS estimates for 2024 have increased to $2.17 from $2.16 over the past 30 days.
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AECOM (ACM) JV Wins Contract to Upgrade NY Water Infrastructure
AECOM’s (ACM - Free Report) joint venture (“JV”) has been selected by the New York City Department of Environmental Protection (“NYCDEP”) to offer inspection services for the Kensico – Eastview Connection project.
Per the deal, the JV will supervise three concurrent teams to connect the Kensico Reservoir to the Catskill-Delaware Ultra Violet Disinfection Facility in Eastview, NY, for water supply.
The first team will oversee the delivery of the 2-mile-deep tunnel. The second team will focus on the build-out of new facilities and connection to the tunnels from the new and existing Catskill-Delaware Ultra Violet facility in Eastview. The third team will stabilize the shoreline during delivery and provide wetlands mitigation adjacent to the Kensico Reservoir.
The project is part of NYCDEP’s efforts to upgrade and modernize the city’s aging water supply infrastructure.
AECOM’s global water business expertise positions it to help ensure that one of the world’s largest urban water systems continues to deliver clean, safe and reliable drinking water.
Solid High-Margin, Low-Risk Professional Services Business
AECOM is a leading solutions provider, supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and environmental, energy and water businesses.
The demand for ACM’s technical, advisory and program management capabilities is increasing due to an improving funding environment, highlighted by the recent passing of the federal infrastructure bill in the United States and the rising demand for ESG-related services.
Image Source: Zacks Investment Research
In the past three months, shares of the company have risen 16.6% compared with the Zacks Engineering - R and D Services industry’s 14.7% growth.
AECOM’s fourth-quarter fiscal 2023 earnings increased 13.5% on a year-over-year basis. Revenues also improved 12% from the prior year. Adjusted net service revenues (“NSR”) — defined as revenues excluding subcontractor and other direct costs — moved up 8%. The design business contributed 90% to the total NSR and recorded year-over-year growth of 8%. Adjusted EBITDA also rose 10% year over year.
As of the fiscal fourth quarter's end, the total backlog came in at $41.17 billion compared with $40.18 billion reported in the prior year. The current backlog level includes 54.8% contracted backlog growth. The record-high 12.7% growth in the design business backlog (on a constant-currency basis) indicates solid quarterly wins and a pipeline of opportunities.
For fiscal 2024, the company anticipates generating 8-10% organic NSR growth.
Zacks Rank & Key Picks
AECOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks that warrant a look in the sector are as follows:
Dream Finders Homes, Inc. (DFH - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dream Finders Homes’ earnings per share (EPS) estimates for 2024 have increased to $2.81 from $2.62 over the past 60 days. This Jacksonville, FL-based homebuilder has been benefiting from the strategy of focusing on managing construction times and increasing inventory turnover.
PulteGroup, Inc. (PHM - Free Report) presently carries a Zacks Rank #2 (Buy). The company is benefiting from its operating model, which strategically aligns the production of build-to-order and quick-move-in homes with applicable demand across consumer groups.
PulteGroup’s EPS estimates for 2024 have increased to $11.37 from $11.30 over the past 60 days.
Howmet Aerospace, Inc. (HWM - Free Report) is a global manufacturer of engineered products serving the aerospace, defense and commercial transportation industries. The company is expected to benefit from higher aircraft production rates and the ease of supply chains in the transportation market.
Howmet Aerospace currently carries a Zacks Rank #2. HWM’s EPS estimates for 2024 have increased to $2.17 from $2.16 over the past 30 days.