AECOM (ACM) surpassed analysts’ expectations on both revenue and earnings for the fourth quarter of 2018. The consensus estimate was for earnings of $0.81 per share on revenue of $5.26 billion. Despite the win, the stock dropped over 5% in premarket hours on Monday.
Total revenue grew 9% to $5.3 billion versus the same period last year. Organic revenue also increased by 9%. Net income fell 5% to $84 million or $0.52 per share versus the prior-year quarter. Adjusted EPS was $0.83.
Total backlog increased by 14% year-over-year to a record $54.1 billion. Wins for full-year 2018 increased 23% to $28.4 billion, including wins of over $6 billion in all four quarters. Aecom recorded more than $7 billion of large MS and CS wins in October, signalling momentum in the first quarter of 2019.
During the quarter, Aecom posted revenue increases across all its business segments, both on a reported and organic basis. The acceleration was helped by growth in the transportation and water markets, and strength in the Building Construction business.
For the full year of 2019, adjusted EPS is expected to be $2.60 to $2.90. Adjusted EBITDA is expected to be $920 million to $960 million, reflecting 12% growth at the midpoint versus fiscal year 2018 and demonstrating strong payback on strategic initiatives. Capital expenditures are expected to be $120 million.