AECOM Technology Earnings Preview

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AECOM Technology (NYS: ACM) beat estimates by one cent last quarter and investors are hoping it can beat them again. The company will unveil its latest earnings on Thursday, Nov. 10. AECOM Technology provides professional technical and management support services to government and commercial clients worldwide.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back AECOM Technology, with 11 of 13 rating it a buy and the remainder rating it a hold. Analysts like AECOM Technology better than competitor URS overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $2.17 billion in revenue this quarter. That would represent a rise of 18.6% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.73 per share. Estimates range from $0.68 to $0.75.

What our community says:
CAPS All-Stars are solidly backing the stock with 98.6% granting it an "outperform" rating. The community at large backs the All-Stars with 97.1% assigning it a rating of "outperform." Fools are keen on AECOM Technology and haven't been shy with their opinions lately, logging 184 posts in the past 30 days. Even with a robust four out of five stars, AECOM Technology's CAPS rating falls a little short of the community's upbeat outlook.

Management:
AECOM Technology's profit has risen year over year by an average of 15.4% over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q3

Q2

Q1

Q4

Gross Margin

5.9%

5.2%

5.4%

6.8%

Operating Margin

5.4%

4.5%

4.7%

5.4%

Net Margin

3.6%

3.0%

2.9%

3.7%

One final thing: If you want to keep tabs on AECOM Technology movements, and for more analysis on the company, make sure you add it to your Watchlist.

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