Shares of Aecom (NYSE: ACM) were up 2.2% in morning hours on Thursday after it was reported that activist investor Starboard Value had urged the construction company to undertake a strategic review of its assets in order to unlock value. Starboard owns a 4% stake in Aecom.
Earlier this week, Aecom announced its plan to spin off its Management Services segment into a standalone government services company. The company expects to complete the deal in the second half of fiscal 2020. Starboard welcomed this decision.
Aecom believes that as an independent entity, the government services business will be well-positioned to pursue opportunities worth over $30 billion.
For its most recent quarter, Aecom saw revenues grow 5% year-over-year to $5 billion. Adjusted EPS was $0.69. Total backlog rose 22% to set a new record at $61 billion. The company expects adjusted EPS to be between $2.60 and $2.90 for fiscal-year 2019.
Over the trailing 52 weeks, Aecom’s shares have risen 11%. The stock has climbed over 42% so far this year.