Engineering and Design Services Stocks Q3 Results: Benchmarking AECOM (NYSE:ACM)

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at AECOM (NYSE:ACM) and its peers.

Companies providing engineering and design services boast ever-evolving technical expertise. Compared to their counterparts who manufacture and sell physical products, these companies can also pivot faster to more trending areas due to their smaller physical asset bases. Green energy and water conservation, for example, are current themes driving incremental demand in this space. On the other hand, those providing engineering and design services are at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.

The 5 engineering and design services stocks we track reported a strong Q3. As a group, revenues missed analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was 1.9% below.

In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.

Weakest Q3: AECOM (NYSE:ACM)

AECOM reported revenues of $4.11 billion, up 7% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ EBITDA estimates.

“We delivered strong results that reflect the strength of our strategy and our competitive advantage, including exceeding the mid-points of our previously-increased EBITDA and EPS guidance and generating record free cash flow,” said Troy Rudd, AECOM’s chief executive officer.

Unsurprisingly, the stock is down 1.3% since reporting and currently trades at $107.75.

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Best Q3: Dycom (NYSE:DY)

Dycom reported revenues of $1.27 billion, up 12% year on year, outperforming analysts’ expectations by 4.3%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates.

Dycom scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.2% since reporting. It currently trades at $182.

Sterling (NASDAQ:STRL)

Sterling reported revenues of $593.7 million, up 6% year on year, falling short of analysts’ expectations by 2.3%. Still, its results were good as it locked in a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.

Interestingly, the stock is up 1.6% since the results and currently trades at $178.31.

MasTec (NYSE:MTZ)

MasTec reported revenues of $3.25 billion, flat year on year. This result came in 5.4% below analysts' expectations. More broadly, it was actually a strong quarter as it logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

MasTec had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 20.7% since reporting and currently trades at $148.40.

EMCOR (NYSE:EME)

EMCOR reported revenues of $3.70 billion, up 15.3% year on year. This number missed analysts’ expectations by 2.5%. In spite of that, it was a strong quarter as it put up a solid beat of analysts’ EBITDA estimates.

EMCOR achieved the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 9.6% since reporting and currently trades at $472.76.

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This content was originally published on Stock Story