AECOM (ACM) to Rebuild Boryspil International Airport in Ukraine
AECOM ACM is all set to serve as a reconstruction delivery partner for the rebuilding of Boryspil International Airport as well as for the renovation of the broader aviation sector of Ukraine.
Per the signed memorandum of understanding, AECOM will provide infrastructure advisory support, including asset condition and capability assessment, design, engineering, program management and construction management. It will also assist in developing a program management capacity for the nation’s aviation sector.
ACM’s services will help in the recovery of Ukraine's aviation sector and it will play an integral part in the global plan for the restoration and modernization of national airports and the aviation industry.
The stock dipped 0.14% during the trading session but rose 1.56% in the after-hours trading session on Nov 16.
Solid Project Execution Aids the Business
AECOM is a leading solutions provider, supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and environmental, energy and water businesses.
Demand for AECOM’s technical, advisory and program management capabilities is increasing on the back of an improving funding environment, highlighted by the recent passing of the federal infrastructure bill in the United States as well as rising demand for ESG-related services.
AECOM and its legacy companies have participated in post-war reconstruction activities on behalf of clients in Iraq, Afghanistan and Bosnia. It has also been taking part in post-natural disaster reconstruction works in Nepal, Haiti, Japan, Indonesia and the Caribbean. The recent deal builds on AECOM’s existing role as infrastructure delivery advisor for the reconstruction of Ukraine.
In the past three months, shares of the company have gained 0.1% versus the Zacks Engineering - R and D Services industry’s 2% decline.
AECOM’s fourth-quarter fiscal 2023 earnings met the Zacks Consensus Estimate but increased by 13.5% on a year-over-year basis. Revenues topped the consensus estimate and improved 12% from the prior year. Adjusted net service revenues or NSR, moved up 8%. The design business contributed 90% to the total NSR and recorded year-over-year growth of 8%. Adjusted EBITDA also rose 10% year over year.
For fiscal 2024, the company anticipates generating 8%-10% organic NSR growth.
Zacks Rank & Key Picks
AECOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks that warrant a look in the same industry are:
Gates Industrial Corporation plc GTES manufactures engineered power transmission and fluid power solutions. Its expected earnings growth rate for 2023 is 10.5%. The consensus mark for GTES’ 2023 earnings has moved north to $1.26 per share from $1.21 in the past 30 days.
GTES currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Howmet Aerospace, Inc. HWM is a global manufacturer of engineered products serving the aerospace, defense and commercial transportation industries. The company is expected to benefit from higher aircraft production rates and the ease of supply chains in the transportation market.
Howmet Aerospace currently carries a Zacks Rank #2 (Buy). HWM’s earnings for 2023 are expected to grow by 27.1%. The consensus mark for its 2023 earnings has moved north to $1.78 per share from $1.77 in the past seven days.
Sterling Infrastructure, Inc. STRL currently has a Zacks Rank #2. STRL delivered a trailing four-quarter earnings surprise of 14.9%, on average.
The Zacks Consensus Estimate for STRL’s 2023 sales and EPS indicates growth of 3.9% and 29.4%, respectively, from the previous year’s reported levels.
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AECOM (ACM) : Free Stock Analysis Report
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