) reported third-quarter 2013 non-GAAP earnings of $1.42 per
share, which beat the Zacks Consensus Estimate of $1.20 by 18.3%.
The company reported GAAP net income of $88.8 million or $1.20
per share in third quarter 2013, down from $106.7 million or
$1.43 per share in the prior-year quarter.
The company benefited from its initiatives to diversify its
business across both private and public sectors, which negated
the difficult conditions arising due to unprecedented government
shutdown and sequestration.
Total revenue in the quarter was $2.74 billion, down 7.2%
compared with $2.95 billion in the prior-year quarter and missed
the Zacks Consensus Estimate of $2.96 billion. The decline in
revenues was due to an after-tax goodwill impairment charge in
the quarter. However, the company benefited from an after-tax
income from its acquisition of Flint Energy Services and a
positive currency gain from Canada.
At the end of the quarter, the company had backlog of $11.6
billion compared with $13.3 billion at year-end 2012. It reported
book of business of $23.3 billion, down from $24.9 billion as on
Dec 28, 2012.
Infrastructure and Environment
revenues in the quarter were $922.3 million, a marginal increase
of 0.2% from $920.7 million reported in the prior-year quarter.
The segment continues to bear the brunt of the slowdown in the
infrastructure market. However, there has been a steady recovery
in the Infrastructure industry and the company's industrial
business is benefiting from the increased demand in North
revenues were $538.9 million, down 22.7% from $682.8 million a
Energy and Construction
revenues were $775.5 million, marginally down 0.8% from $781.5
million in the prior-year period.
Oil & gas
reported revenues of $532.6 million, which declined 10.1% from
$592.2 million in the third quarter of 2012. The decline was due
to continued effect of unfavorable weather conditions and
flooding in western Canada in the previous quarter.
Income and Expenses
Operating income in the quarter was $179.3 million, down 13.1%
from $203.6 million in the prior-year quarter. The company's
general and administrative expenses were $14.3 million compared
with $22.6 million a year ago.
Balance Sheet and Cash Flow
Cash and cash equivalents were $314.2 million at the end of
the quarter, compared with $314.5 million as on Dec 28, 2012.
Long-term debt was $1.9 billion and shareowners equity was $4.1
billion as on Sep 27, 2013.
The company's cash flow in the quarter was $268.0 million,
bringing its year-to-date tally to $358.3 million, an increase of
20% from last year.
Following the earnings release, URS now expects 2013
consolidated revenues to be between $11.0 billion and $11.5
billion. The company lowered its higher end of its earnings
guidance to be in the range of $4.10 to $4.25 a share, down from
the previous range of $4.25 to $4.50 a share. URS expects
non-GAAP cash earnings for 2013 to be between $5.05 and $5.20 per
share. Ongoing uncertainty related to the political impasse that
also led to the U.S. government shutdown and its subsequent
effects resulted in the lowered guidance.
URS currently has a Zacks Rank #4 (Sell). Other companies that
can be considered at the moment include
Jacobs Engineering Group Inc.
AO Smith Corporation
Quanta Services, Inc.
).Jacobs Engineering Group and AO Smith Corporation both carry a
Zacks Rank #1 (Strong Buy), whereas Quanta Services has a Zacks
Rank #2 (Buy).
SMITH (AO) CORP (AOS): Free Stock Analysis
JACOBS ENGIN GR (JEC): Free Stock Analysis
QUANTA SERVICES (PWR): Free Stock Analysis
URS CORP (URS): Free Stock Analysis Report
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