URS Below Estimate - Analyst Blog
August 10 2011 - 4:00AM
Zacks
URS Corp. (URS)
reported second-quarter fiscal 2011 earnings per share of 86 cents,
below the Zacks Consensus Estimate of 92 cents. Earnings for the
quarter were above the prior-year earnings per share of 76
cents.
Total Revenue
Total revenue in the quarter was
$2.36 billion compared with $2.25 billion in the prior-year
quarter. The company benefited from revenue growth in the
industrial and commercial business, which includes mining, oil and
gas, and industrial and manufacturing industries. URS continues to
benefit from its strategy to setup a diversified
business.
Segment Result
Infrastructure and
Environment revenue in the quarter was $929.5 million
compared with $751.1 million in the prior-year quarter. The segment
revenue included $115.0 million contribution from Scott Wilson
Group plc, acquired by URS in September 2010.
Federal Services
revenue was $668.6 million compared with $652.0 million, aided by
continued demand for URS’ specialized engineering and technical
services. The federal segment revenue in the quarter included $27.6
million contribution from Apptis Holdings Inc., acquired in June
2011.
Energy and
Construction revenue was $810.5 million compared with
$859.7 million in the prior-year period.
Income and
Expenses
Operating income for the quarter
came in at $150.6 million compared with $134.6 million in the
prior-year period. General and administrative expenses were $19.0
million compared with $13.3 million.
Balance Sheet and Cash
Flow
Cash and cash equivalents was
$433.8 million at the end of the second quarter of 2011 compared
with $573.8 million at the end of 2010. Long-term debt was $395.9
million compared with $641.3 million and shareowners equity was
$4.25 billion compared with $4.20 billion at the end of 2010.
Outlook
The company reaffirmed its 2011
revenue guidance range 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. As such, it
offers a broad range of program management, planning, design,
engineering, construction and construction management, operations
and maintenance, and decommissioning and closure services to public
agencies and private sector clients globally. 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 #3 Rank (short-term Hold
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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