URS Corporation Maintains Neutral Rating

Sterne Agee published its research report yesterday on URS Corporation

maintaining their Neutral rating. In 3Q10, URS reported GAAP EPS of $0.87 which was higher than the Sterne Agee estimate of $0.84. Revenue did grow 1% Y/Y to $2.34B but fell short of Sterne Agee's $2.42B estimate. This shortfall was attributed to lower I&E and Federal Services revenue. Sterne Agee writes, "While we continue to view URS' end-market diversity and solid execution favorably, we continue to believe it may prove difficult for URS to organically grow backlog throughout 2011 given the continued uncertain outlook for State and Local spending and overall construction activity in the U.S. Our 2010/2011/2012 GAAP estimates are unchanged at $3.70/$3.85/$4.25." URS is trading at $41.87.