Infrastructure engineering and design company Aecom Technology Corporation (ACM) Thursday reported higher earnings for the fourth quarter that also surpassed market estimates, helped mainly by an 18% increase in revenues from management support services segment. The company also provided an earnings guidance for fiscal 2010, which is below analysts' current estimates. Aecom shares are currently trading up nearly 5% on the NYSE.
For the fourth quarter, net income attributable to shareholders was $54.24 million or $0.48 per share compared with $43.41 million or $0.41 per share in the prior-year period.
Income from continuing operations increased to $54.09 million or $0.48 per share from $42.75 million or $0.40 per share last year. On an average, 10 analysts polled by Thomson Reuters expected Aecom to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter edged down to $1.625 billion from $1.629 billion in the fourth quarter of fiscal 2008. Analysts expected the company to generate revenues of $1.67 billion for the quarter.
Revenues, net of other direct costs, were $989.28 million versus $1.01 billion a year earlier. Other direct costs incurred by Aecom increased to $636.21 million from $619.22 million last year.
The Los Angeles, California-based company has two segments: Professional technical services and management support services.
In professional technical services segment, revenues were $1.33 billion versus $1.38 billion in the previous-year period. The segment's revenues, net of other direct costs, decreased 5% to $921.42 million from $964.86 million in the 2008-year period.
In management support services segment, revenues increased to $292.32 million from $246.73 million a year earlier. The division's revenues, net of other direct costs, were $67.86 million versus $45.03 million in the same quarter last year.
During the three-month period, income tax expense incurred by the company decreased to $19.92 million from $20.30 million, and general and administrative costs were $25.65 million versus $25.67 million in the corresponding period prior year. Aecom had an other income of $4.67 million compared with an expense of $2.57 million in the previous year quarter.
President and chief executive officer John Dionisio said, "During the quarter, we won over $1.8 billion in new projects, highlighted by several mega projects."
In the preceding third quarter, attributable net earnings were $51.01 million or $0.46 per share versus $38.42 million or $0.37 per share in the last-year period. Revenues for the third quarter had increased 16% to $1.53 billion from $1.32 billion in the third quarter of fiscal 2008.
For the full year 2009, attributable net income rose to $189.56 million or $1.73 per share from $147.06 million or $1.41 per share in the previous year. Aecom's income from continuing operations was $186.70 million or $1.70 per share as compared with $146.52 million or $1.41 per share in fiscal 2008.
Revenues for the 12-month period increased 18% to $6.12 billion from $5.19 billion last year. Revenues, net of other direct costs, were $3.82 billion, up from $3.29 billion a year ago. Analysts expected the company to earn $1.69 per share on revenues of $6.15 billion for the full year 2009.
At September 30, 2009, the company's contracted backlog was up at $5.36 billion compared to $4.81 billion in the previous year period, and awarded backlog was $4.13 billion versus $3.81 billion last year, making a total backlog of $9.5 billion, a 10% increase year-over-year.
Looking ahead to fiscal 2010, Aecom expects earnings to be between $1.90 and $2.00 per share, the midpoint of which reflects a 15% growth in earnings per share. Analysts currently anticipate the company to report earnings to $2.03 per share for fiscal 2010.
Among peers, Swiss power and automation technologies company ABB Ltd. (ABB) reported on October 29 a rise in third-quarter profit, reflecting a significant net gain on provision adjustments. The Zurich, Switzerland-based company's attributable net income was $1.03 billion or $0.45 per share, up 12% from $927 million or $0.40 per share in the comparable quarter last year. Revenues for the quarter fell 10% to $7.91 billion from $8.79 billion in the previous year, on a 21% drop in orders.
In Thursday's regular trading session, ACM is currently trading on the New York Stock Exchange at $26.68 per share up $1.21 or 4.75% on a volume of 200,933 shares. In the 52-week period, the shares have been trading in a range of $17.07 to $33.20.
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