Aecom Technology Corp. on Tuesday said growth in its management support services segment contributed to fiscal first quarter earnings that were slightly better than Wall Street expected, although revenue was less.
The Los Angeles engineering and design firm reported net income of $46 million (40 cents a share) for the quarter ended Dec. 31, compared with income of $41 million (38 cents) a year earlier. Total revenue rose 2 percent to $1.48 billion, with management support services revenue up 24 percent.
Analysts surveyed by Thomson Reuters on average were expecting net income of 39 cents a share on revenue of $1.52 billion.
The company is well positioned to benefit from stimulus spending on infrastructure as well as from the overall economic recovery, particularly in North America, Asia, Australia and the Middle East, said Chief Executive John M. Dionisio. Aecom’s backlog is up 11 percent over the same period a year ago to $10 billion.
“Aecom’s diversified business model and its strength in key end markets, such as transportation and facilities, have positioned us to capitalize on stimulus-related opportunities in 2010 and beyond,” said Dionisio in a press release.
Looking ahead to fiscal 2010, the company reaffirmed guidance and expects earnings in the range of $1.90 to $2 per share. Analysts are expecting $1.98 per on average.
Shares were up $1.76, or nearly 7 percent, to $27.56 in midday trading on the New York Stock Exchange.
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