) reported first-quarter fiscal 2014 earnings of 37 cents per share
on May 13, 2014. The figure fell short of the Zacks Consensus
Estimate of 67 cents by 44.8%. Quarterly earnings were down 61.5%
year over year from 96 cents.
URS Corp. reported cash earnings per share (EPS), which is
operating cash flow/diluted number of shares. Cash EPS for the
first quarter stood at 60 cents a share versus $1.22 a share in the
The decline in profits was attributable to the company's
demilitarization (Chem Demil) program.
Total revenue in the first quarter came in at $2.5 billion, down
9.5% from $2.80 billion in the prior-year quarter and it also
missed the Zacks Consensus Estimate of $2.7 billion.
At the end of the quarter, the company had a backlog of $11.2
billion, down 0.9% from $11.3 billion at the end of Jan 2014. It
reported book of business worth $23.0 billion as against $22.8
billion as of Jan, 2014.
For the first quarter,
Infrastructure and Environment segment
reported revenues of $850 million, down 5.3% year over year. On the
other hand, operating revenues totaled $36 million, down 10% from
$40 million recorded in the prior-year quarter.
The Federal Services segment
generated revenues of $649 million and operating income of $57
million in the first quarter of 2014. Revenues were down 28.4%
while operating income was down 50.4% year over year. Revenues from
the chemical demilitarization contracts totaled $89 million while
operating income stood at $23 million compared with $252 million
and $90 million, respectively, in the year-ago quarter.
In the first quarter,
the Energy and Construction segment
recorded revenues of $544 million and operating income of $5
million compared with revenues of $538 million and operating income
of $12 million in the prior-year quarter.
Oil & gas segment
registered revenues of $514 million, up 1.2% year over year, while
operating income came in at $11 million compared with $9 million in
the first quarter of 2014.
Income and Expenses
Operating income in the quarter totaled $87 million, down 43.1%
from $153 million in the prior-year quarter.
Balance Sheet, Cash Flow, Share Repurchase and
Cash and cash equivalents were $231 million at the end of the
quarter, compared with $284 million as on Jan 3, 2014. Long-term
debt was $2.1 billion as against $1.7 billion as on Jan 3, 2014 and
shareowners' equity stood at $3.8 billion as on Mar 3, 2014.
The company's operating cash flow in the first quarter of 2014
was $132 million, versus $50 million in the prior-year quarter,
reflecting an increase of 62.1%. The upside was driven by efficient
working capital management.
URS Corp. is working on its prior plan to return at least $500
million to its shareholders through stock repurchases and dividends
by the end of 2015. During the first quarter of 2014, the company
repurchased 5.7 million shares worth $266 million and paid $15
million in dividends.
Following the earnings release, URS Corp. reiterated its
guidance for fiscal 2014. The company expects revenues for the year
in the range of $10.8-$11.2 billion while EPS is projected in the
$3.20 to $3.50 band.
Cash EPS for fiscal 2014 is expected in the range of $4.13-$4.43
a share, on a fully diluted basis..
Meanwhile, operating cash flow is projected in the $725-775
million for fiscal 2014.
URS Corp. currently has a Zacks Rank #4 (Sell). However, some
better-ranked stocks in the engineering and diversified sector
worth considering at the moment include
Pernix Group Inc.
Willdan Group Inc.
). Pernix and Willdan sport a Zacks Rank #1 (Strong Buy) while
Enersys has a Zacks Rank #2 (Buy).
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