URS Corp. Underperforms - Analyst Blog
May 11 2011 - 9:09AM
Zacks
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.
AECOM TECH CORP (ACM): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
KBR INC (KBR): Free Stock Analysis Report
URS CORP (URS): Free Stock Analysis Report
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