AECOM ACM is scheduled to report fourth-quarter fiscal 2024 results on Nov. 18, after market close.

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In the last reported quarter, ACM’s earnings beat the Zacks Consensus Estimate by 3.6% and increased 23% year over year. Net sales grew 13% year over year.

AECOM’s earnings topped the consensus mark in two of the last four quarters, met on one occasion and missed once, the average surprise being 4.2%.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been stable at $1.22 in the past 60 days. The estimated figure indicates a 20.8% increase from the year-ago quarter’s level of $1.01.

AECOM Price and EPS Surprise

AECOM price-eps-surprise | AECOM Quote

Key Factors to Note

AECOM is expected to report strong earnings in the fiscal fourth quarter, backed by its high-returning organic growth initiatives. AECOM has undertaken certain restructuring moves to improve profitability and de-risk the business profile. These moves are helping ACM reduce costs and simplify its operating structure.

The company has been gaining strength in the design business thanks to impressive American and International markets.

The company’s Think and Act Globally strategy, record design backlog and pipeline of opportunities continue to remain strong. The company’s net service revenues or NSR — defined as revenues excluding subcontractor and other direct costs — have been benefiting from strength across core transportation, water and environment markets.

Also, its focus on ESG or Environmental, Social and Governance bodes well. Demand for AECOM’s technical, advisory and program management capabilities is increasing in an improving funding environment as well as rising demand for ESG-related services.

The Zacks Consensus Estimate for the Americas segment sales is pegged at $1.09 billion, suggesting an increase from the $1 billion reported in the year-ago period. The same for International segment sales is pegged at $759 million, up from $722.4 million reported in the year-ago period.

The Zacks Consensus Estimate for operating income for the Americas segment is pegged at $210 million, suggesting an increase from the $186.2 million reported in the year-ago period. The same for International segment is pegged at $86 million, up from $71.9 million reported in the year-ago levels.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for AECOM this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: ACM has an Earnings ESP of 0.00%.

Zacks Rank: Currently, AECOM carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.