AECOM Technology (NYSE: ACM) — one of 30 companies listed in Executive Mosaic’s GovCon Index — has reported second quarter revenue below Wall Street’s forecasts on a downturn in construction sales to energy sector customers as earnings topped analyst expectations.
The Los Angeles-based engineering and construction contractor said revenue for the January-March period declined 7.53 percent year-over-year to $4.38 billion versus Wall Street expectations of $4.55 billion.
Construction services segment sales fell 1.3 percent to $1.54 billion due to ongoing pressure in the energy market as both the New York and London crude oil benchmarks have respectively declined 31.2 percent and 37.22 percent over the past 12 months.
Sales in AECOM’s management services segment that houses a majority of business for U.S. and international government agencies increased 5 percent from the prior year period to $868.9 million on a pension entitlement recovery the company expects to contribute 14 cents per share in earnings for its current fiscal year.
Revenue in the design and consulting services segment posted a nominal 0.6 percent year-over-year decline to $1.96 billion.
Earnings came in at 87 cents per share when excluding acquisition and integration costs to exceed analyst expectations by 15 cents with overall profit at $41.82 million.
With acquisition and integration costs, earnings amounted to 27 cents per share.
AECOM held to its full-year earnings guidance in the range of $3.00-to-$3.40 per share with no revenue outlook stated.
As of Monday’s close, shares in AECOM were up 4.36 percent from the start of the year and down 0.85 percent over 12 months.