Modest 4Q for URS - Analyst Blog
February 26 2013 - 8:50AM
Zacks
URS Corp. (URS) reported fourth-quarter 2012
recurring earnings per share of 95 cents a share, 4.0% below the
Zacks Consensus Estimate of 99 cents but soared 156.7% year over
year. Profits during the quarter were primarily driven by strong
activity in the company’s oil and gas business.
Earnings of $4.17 a share in full year 2012 were 0.5% higher
than the Zacks Consensus Estimate of $4.15 a share, driven by
strong business across the company’s segments and synergies from
the acquisition of Flint Energy. During fiscal 2011, the company
posted a loss of $6.03 a share due to goodwill impairment charges
and restructuring related charges.
Total Revenue
Total revenue in the quarter was $2.97 billion, up 24.2%
compared with $2.39 billion in the prior-year quarter. Revenue in
the quarter was aided by strong performance of the federal sector
and the oil and gas businesses.
Backlog at the end of 2012 was $13.2 billion compared with $14.3
billion at the end of Dec 30, 2011.
Segment Result
Infrastructure and Environment revenue in the
quarter was $941.0 million, down 3.1% from $970.8 million in the
prior-year quarter. The segment continues to bear the brunt of the
slowdown in the Infrastructure market. However, there has been a
steady recovery in the Infrastructure industry with new
opportunities in highway, transit, airports and other public
infrastructure projects.
Federal Services revenue was $603.5 million,
down 17% from $726.8 million a year ago. The decline in the Federal
services reflects the continuing delay in procurement decisions and
reduction in anticipated spending against previously awarded
contracts.
Energy and Construction revenue was $853.0
million, up 16.9% from $866.4 million in the prior-year period. The
segment revenue was primarily driven by growth in the emission
control projects, modification on nuclear facilities and
transmission and distribution projects.
The Oil & Gas segment reported revenues of
$605.4 million, driven by the Flint acquisition and the strong
pipeline of EPC opportunities. In the fourth quarter, 29% of the
consolidated revenues came from the oil & gas market, providing
URS with the strategic balance for continued growth.
URS’ consolidated energy revenue (power and oil gas) contributed
approximately 42% of the total revenue in the fourth
quarter.
Income and Expenses
Operating income in the quarter was $171.4 million, up 50.2%
from $114.1 million in the prior-year quarter. General and
administrative expenses were $21.6 million compared with $19.6
million a year ago.
Balance Sheet and Cash Flow
Cash and cash equivalents were $314.5 million as on December 28,
2012 compared with $436.0 million at the end of 2011. Long-term
debt was $2.0 billion as on December 28, 2012 compared with $737
million and shareowners equity was $3.76 billion compared with
$3.48 billion at the end of 2011.
Dividend
The board of directors approved a 5% increase in its regular
quarterly cash dividend to 21 cents per common share. The dividend
will be paid on Apr 5, 2013 to shareholders of record as of Mar 15,
2013.
Outlook
URS expects full year 2013 consolidated revenues to be between
$11.8 billion and $12.2 billion. The company expects EPS to be
between $4.25 and $4.75 a share, on a fully diluted basis.
URS Corporation currently has a Zacks Rank #3 (Sell). Its close
rivals such as Quanta Services Inc. (PWR)
currently has a Zacks Rank #1 (Strong Buy) while Jacobs
Engineering Group (JEC) and Aecom Technology
Corporation (ACM) have a Zacks Rank #2 (Buy).
AECOM TECH CORP (ACM): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
QUANTA SERVICES (PWR): Free Stock Analysis Report
URS CORP (URS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Jacobs Engineering (NYSE:JEC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Jacobs Engineering (NYSE:JEC)
Historical Stock Chart
From Jul 2023 to Jul 2024