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Preview: AECOM's Earnings

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AECOM (NYSE: ACM) announces its next round of earnings this Monday, November 16. Here is Benzinga's everything-that-matters guide for this Monday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see AECOM reporting earnings of $0.57 per share on revenue of $3.28 billion. AECOM EPS in the same period a year ago totaled $0.79. Sales were $5.12 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be down 27.85%. Revenue would be down 35.89% on a year-over-year basis. Here is how the AECOM's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.49 0.50 0.70 0.80
EPS Actual 0.55 0.55 0.46 0.79
Revenue Estimate 3.14 B 3.29 B 5.01 B 5.33 B
Revenue Actual 3.19 B 3.25 B 3.24 B 5.12 B

Stock Performance

Over the last 52-week period, shares are up 15.38%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. AECOM is scheduled to hold the call at 12:00:00 ET and can be accessed here.

 

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Posted-In: Earnings