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AECOM Gears Up to Report Q4 Earnings: Things to Keep in Mind

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AECOM (ACM - Free Report) is scheduled to report fourth-quarter fiscal 2024 results on Nov. 18, after market close.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In the last reported quarter, ACM’s earnings beat the Zacks Consensus Estimate by 3.6% and increased 23% year over year. Net sales grew 13% year over year.

AECOM’s earnings topped the consensus mark in two of the last four quarters, met on one occasion and missed once, the average surprise being 4.2%.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been stable at $1.22 in the past 60 days. The estimated figure indicates a 20.8% increase from the year-ago quarter’s level of $1.01.

AECOM Price and EPS Surprise

AECOM Price and EPS Surprise

AECOM price-eps-surprise | AECOM Quote

Key Factors to Note

AECOM is expected to report strong earnings in the fiscal fourth quarter, backed by its high-returning organic growth initiatives. AECOM has undertaken certain restructuring moves to improve profitability and de-risk the business profile. These moves are helping ACM reduce costs and simplify its operating structure.

The company has been gaining strength in the design business thanks to impressive American and International markets.

The company’s Think and Act Globally strategy, record design backlog and pipeline of opportunities continue to remain strong. The company’s net service revenues or NSR — defined as revenues excluding subcontractor and other direct costs — have been benefiting from strength across core transportation, water and environment markets.

Also, its focus on ESG or Environmental, Social and Governance bodes well. Demand for AECOM’s technical, advisory and program management capabilities is increasing in an improving funding environment as well as rising demand for ESG-related services.

The Zacks Consensus Estimate for the Americas segment sales is pegged at $1.09 billion, suggesting an increase from the $1 billion reported in the year-ago period. The same for International segment sales is pegged at $759 million, up from $722.4 million reported in the year-ago period.

The Zacks Consensus Estimate for operating income for the Americas segment is pegged at $210 million, suggesting an increase from the $186.2 million reported in the year-ago period. The same for International segment is pegged at $86 million, up from $71.9 million reported in the year-ago levels.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for AECOM this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: ACM has an Earnings ESP of 0.00%.

Zacks Rank: Currently, AECOM carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

Fluor Corporation (FLR - Free Report) reported third-quarter 2024 adjusted EPS of 51 cents, which missed the Zacks Consensus Estimate of 78 cents by 34.6%. The reported figure decreased 50% from an EPS of $1.02 a year ago.

Fluor’s quarterly revenues of $4.09 billion missed the consensus mark of $4.79 billion by 14.6%. The figure grew 3.3% from the year-ago quarter’s level of $3.96 billion.

KBR, Inc. (KBR - Free Report) reported mixed third-quarter fiscal 2024 results, with adjusted earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

KBR’s quarterly results were backed by the benefits realized from the LinQuest acquisition and solid contributions from both the reportable businesses, given the increased demand trends for its services. Although high costs and expenses were headwinds, leverage from the increased top line aided the uptick.

Quanta Services Inc. (PWR - Free Report) reported mixed results for the third quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same.

Quanta reported a strong quarter with double-digit growth across key financial metrics, a record backlog of $34 billion and $539.5 million in free cash flow. CEO Duke Austin attributed this growth to Quanta’s diverse portfolio, high demand, effective execution and an expanding market.


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