AECOM Q3 Profit Rises, But Results Miss Estimates; Reaffirms FY19 Outlook

(RTTNews) - AECOM (ACM) reported that its third-quarter net income was $83.74 million or $0.52 per share, up from $60.91 million or $0.37 per share in the prior year.

On an adjusted basis, earnings per share for the quarter were $0.72, compared to $0.62 in the year-ago period.

However, revenue for the quarter declined 3.3 percent to $4.98 billion from $5.15 billion in the year-ago period.

The quarter's revenue included 10 percent organic growth in the Management Services segment and continued underlying growth in the Americas design business, which was offset by anticipated lower levels of storm recovery work in the U.S. Virgin Islands.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.74 per share on revenues of $5.23 billion for the quarter. Analysts' estimates typically exclude special items.

Looking ahead to fiscal 2019, AECOM reiterated its full year financial guidance for adjusted EBITDA growth of 12 percent at the mid-point of the $920 million to $960 million range, adjusted earnings per share in the range of $2.60 to $2.90.

Free cash flow for the year is now expected by the company to be at the lower end of the outlook range of $600 million to $800 million due to the timing of collections, primarily related to storm recovery work in the U.S. Virgin Islands, which is expected to be fully funded by FEMA.