Weak 1Q Earnings for URS
) reported first-quarter 2013 recurring earnings per share of 96
cents a share, 14.3% below the Zacks Consensus Estimate of $1.12
a share. Quarterly earnings were down 10.3% year over year.
Profits for the company are uneven as the company primarily
generates revenues from large-scale projects which vary from
quarter to quarter.
Total revenue in the quarter was $2.80 billion, up 18.7%
compared with $2.36 billion in the prior-year quarter. Revenue
growth was driven by continued strength of the energy sector and
the oil & gas sector. In addition, the bidding activity in
the U.S. has increased significantly in the recent past and
favorable upstream, midstream and the downstream segments have
also contributed positively to the top line.
Further, lower energy costs are aiding in increased
manufacturing activity which has increased the demand for the
facilities management, O&M and EPC services.
Backlog as of Mar 29 2013 was $24.2 billion compared with
$24.9 billion at the end of Mar 28, 2012.
Infrastructure and Environment
revenue in the quarter was $933.4 million, down 3.2% from $964.2
million 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
with new opportunities in highway, transit, airports and other
public infrastructure projects.
revenue was $678.2 million, down 5.4% from $717.1 million a year
ago. The decline in the Federal services reflects the continuing
delay in procurement decisions and reduction in anticipated
spending against previously awarded contracts.
Energy and Construction
revenue was $664.8 million, down 8.4% from $725.7 million in the
prior-year period. The decline in revenues there has been a gap
between the last finished projects and the new ones that are
Oil & Gas segment
reported revenues of $583.8 million which increased almost 250%
from just $163 million in the first quarter of 2012. This robust
increase was driven by the Flint acquisition and the strong
pipeline of EPC opportunities.
Income and Expenses
Operating income in the quarter was $152.6 million, down 5.5%
from $161.4 million in the prior-year quarter. The decline was
attributable to higher costs and general and administrative
expenses were $22.7 million compared with $20.0 million a year
Balance Sheet and Cash Flow
Cash and cash equivalents were $248.8 million as on Mar 29,
2013 compared with $314.5 million as on Dec 28, 2012. Long-term
debt was $2.0 billion and shareowners equity was $3.76 billion as
on Mar 29, 2013 which was unchanged as on Dec 28, 2012.
Concurrent with the earnings release, management reaffirmed
the guidance for 2013. URS expects full year 2013 consolidated
revenues to be between $11.8 billion and $12.2 billion. The
company expects EPS to be between $4.25 and $4.75 a share, on a
fully diluted basis.
URS currently has a Zacks Rank #4 (Sell) which is not a good
option as present. However, other companies that can be
considered at the moment are
Honeywell International Inc
Raven Industries Inc
), all having Zacks Rank #2 (Buy).
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URS CORP (URS): Free Stock Analysis Report
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