Earnings Preview: AECOM

AECOM ACM is gearing up to announce its quarterly earnings on Monday, 2024-11-18. Here's a quick overview of what investors should know before the release.

Analysts are estimating that AECOM will report an earnings per share (EPS) of $1.24.

AECOM bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.03, leading to a 5.06% increase in the share price the following trading session.

Here's a look at AECOM's past performance and the resulting price change:

Performance of AECOM Shares

Shares of AECOM were trading at $107.2 as of November 14. Over the last 52-week period, shares are up 21.91%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on AECOM

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on AECOM.

AECOM has received a total of 4 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $121.0, the consensus suggests a potential 12.87% upside.

Peer Ratings Overview

The analysis below examines the analyst ratings and average 1-year price targets of Comfort Systems USA, MasTec and APi Gr, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Buy trajectory for Comfort Systems USA, with an average 1-year price target of $524.0, indicating a potential 388.81% upside.
• As per analysts' assessments, MasTec is favoring an Buy trajectory, with an average 1-year price target of $150.83, suggesting a potential 40.7% upside.
• APi Gr received a Neutral consensus from analysts, with an average 1-year price target of $44.5, implying a potential 58.49% downside.

Overview of Peer Analysis

The peer analysis summary presents essential metrics for Comfort Systems USA, MasTec and APi Gr, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

AECOM ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit and Return on Equity.

Delving into AECOM's Background

Aecom is one of the largest global providers of design, engineering, construction, and management services. It serves a broad spectrum of end markets including infrastructure, water, transportation, and energy. Based in Los Angeles, Aecom has a presence in over 150 countries and employs 51,000. The company generated $14.4 billion in sales and $847 million in adjusted operating income in fiscal 2023.

AECOM: Delving into Financials

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: AECOM's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 13.31%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: AECOM's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 3.23%, the company may face hurdles in effective cost management.

Return on Equity (ROE): AECOM's ROE excels beyond industry benchmarks, reaching 5.97%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): AECOM's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.14%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 1.31, AECOM faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for AECOM visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.