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URS Corporation (URS) reported first-quarter fiscal 2011 earnings per share of 79 cents, below the Zacks Consensus Estimate of 84 cents. Earnings for the quarter were also below the prior-year earnings per share of $1.17.

Total Revenue

Total revenue in the quarter was $2.32 billion compared with $2.21 billion in the prior-year quarter. The company benefited from revenue growth in the power and industrial and commercial sectors led by increased spending on capital projects by the clients improved economic environment.

Segment Result

Infrastructure and Environment revenue in the quarter was $909.9 million compared with $775.1 million in the prior-year quarter. Federal Services revenue was $581.1 million compared with $637.5 million and Energy and Construction revenue was $866.4 million compared with $808.1 million in the prior-year period.

Income and Expenses

Operating income for the quarter came in at $132.1 million compared with $125.2 million in the prior-year period. General and administrative expenses were $22.4 million compared with $20.3 million.

Balance Sheet and Cash Flow

Cash and cash equivalents was $487.1 million at the end of the first quarter of 2011 compared with $573.3 million at the end of the prior-year quarter. Long-term debt was $538.7 million compared with $641.3 million and shareowners equity was $4.15 billion compared with $4.20 billion at the end of the prior-year quarter.

Outlook

The company reaffirmed its 2011 revenues guidance of $9.8 billion to $10.0 billion and EPS range of $3.60 to $3.70.

Improving capital spending environment will continue to benefit both the power and industrial and commercial sectors. The company’s infrastructure business continues to expand in international market. These positive factors will aid the company’s performance in 2011.

URS Corp. was originally incorporated in California on May 1, 1957 as Broadview Research Corporation. On May 18, 1976, it was re-incorporated in Delaware under the name URS Corporation. The name “URS Corporation” was formally adopted on February 21, 1990.

URS Corp. provides engineering, construction and technical services. It is also a major U.S. federal government contractor in the areas of systems engineering and technical assistance, and operations and maintenance. Major competitors of URS are AECOM Technology Corporation (ACM), Fluor Corporation (FLR) and KBR Inc. (KBR).

We currently maintain our Neutral rating on URS Corp. with a Zacks #4 Rank (short-term Sell recommendation) over the next one-to-three months.

 
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