Infrastructure consulting service company AECOM (NYSE:ACM) will be reporting earnings this Monday after the bell. Here’s what investors should know.
AECOM missed analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $4.18 billion, up 1.6% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates and full-year EBITDA guidance slightly missing analysts’ expectations.
Is AECOM a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting AECOM’s revenue to decline 6.9% year on year to $3.74 billion, a reversal from the 2.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.16 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AECOM has missed Wall Street’s revenue estimates five times over the last two years.
Looking at AECOM’s peers in the construction and engineering segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Construction Partners delivered year-on-year revenue growth of 44.1%, beating analysts’ expectations by 10.5%, and Matrix Service reported revenues up 12.5%, falling short of estimates by 2.3%. Construction Partners traded up 10.7% following the results while Matrix Service was down 16.6%.
Read our full analysis of Construction Partners’s results here and Matrix Service’s results here.
There has been positive sentiment among investors in the construction and engineering segment, with share prices up 8.7% on average over the last month. AECOM is up 1.5% during the same time and is heading into earnings with an average analyst price target of $126.83 (compared to the current share price of $98).
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