) have increased 5.3% since it reported a 34% year-on-year rise
in third quarter earnings to 98 cents per share on Oct 31. The
company reported better-than-expected top-line and bottom-line
results for third-quarter 2013. The reported figure exceeded the
Zacks Consensus Estimate of 78 cents by 25.6%.
Earnings for this professional consulting service were
primarily aided by top-line growth and increased activity in the
company's Environment, Industrial as well as Transportation
Gross revenue jumped 21.3% year over year to $ 559.3 million
(CAD 581.2 million) in the reported quarter, beating the Zacks
Consensus Estimate of $449 million. Organic revenue growth was
10.1% in the reported quarter.
Stantec's Environment and Industrial practice areas performed
well in the quarter led by a strong oil and gas sector. Moreover,
the company received major export pipelines contracts across
Canada, which is expected to boost its revenues in upcoming
quarters as well.
The company's Transportation sector received a boost from key
acquisitions and contract wins, including a construction contract
for designing the Westside Subway Transit Corridor-one of the
most regionally significant infrastructure programs in southern
Gross margins in the quarter remained almost flat at 45.2%
compared with 45.6% in the year-ago quarter. The company's
operating profit jumped 34% year over year in the reported
quarter. However, the company's operating profit margin crept up
102 basis points to 10.75% in the quarter.
Stantec also declared a dividend of 16.5 cents per share,
which will be paid on Jan 16, 2014, to shareholders of record
date Dec 31, 2013.
Stantec currently carries a Zacks Rank #3 (Hold). Some
better-placed stocks in the Business Services industry are
Huron Consulting Group Inc.
) and. While Huron and Exponent both carry a Zacks Rank #2 (Buy),
CoreLogic has a Zacks Rank #1 (Strong Buy).
Note: CAD 1 = $0.9624 (period average from Jul 1, 2013 to
Sep 30, 2013)
CORELOGIC INC (CLGX): Free Stock Analysis
EXPONENT INC (EXPO): Free Stock Analysis
HURON CONSLT GP (HURN): Free Stock Analysis
STANTEC INC (STN): Free Stock Analysis Report
To read this article on Zacks.com click here.