AECOM (NYSE:ACM) Quarterly Earnings Preview

    • AECOM's anticipated earnings per share (EPS) for the upcoming quarter is $1.10, with revenue expected to be around $4.1 billion.
    • The company has consistently outperformed earnings expectations, with an average surprise of 5.2% over the last four quarters.
    • Financial metrics reveal a price-to-earnings (P/E) ratio of 35.39 and a current ratio of 261.73, indicating strong liquidity.

    AECOM (NYSE:ACM) is a leading global infrastructure firm offering a wide range of services across various sectors, including transportation, facilities, environmental, energy, water, and government services. Competing with industry giants like Jacobs Engineering and Fluor Corporation, AECOM is gearing up for its quarterly earnings release on February 4, 2025.

    Wall Street is setting its sights on an EPS of $1.10 and revenues nearing $4.1 billion for the quarter. AECOM's performance in the previous quarter was noteworthy, surpassing the Zacks Consensus Estimate by 4.1% and achieving a 25.7% year-over-year growth in earnings. Additionally, the company reported a 7% increase in revenue from the previous year, underscoring its robust performance.

    Despite a minor adjustment in the Zacks Consensus Estimate for EPS from $1.11 to $1.10 over the last 30 days, the projected EPS signifies a 4.8% growth from the prior year's $1.05 per share. AECOM's strategic focus on low-risk end markets is anticipated to bolster its financial outcomes. Impressively, AECOM has surpassed earnings expectations in three out of the last four quarters, with an average earnings surprise of 5.2%.

    Examining AECOM's financial metrics offers deeper insights into its market stance. The firm boasts a P/E ratio of approximately 35.39, reflecting investor confidence in paying over 35 times the earnings over the past twelve months. The price-to-sales ratio is positioned at 0.87, indicating the company's market valuation is slightly below its total sales. Furthermore, the enterprise value to sales ratio stands at 0.81, with an enterprise value to operating cash flow ratio of 15.70, assessing the company's valuation against its revenue and cash flow, respectively. The earnings yield is calculated at 2.83%, offering an insight into the return on investment for shareholders. With a debt-to-equity ratio of 0.23 and a current ratio of an impressive 261.73, AECOM demonstrates a relatively low level of debt and a strong liquidity position, respectively.

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