AECOM Gears Up to Report Q1 Earnings: Factors to Consider

Core Viewpoint - AECOM (ACM) is set to report its first-quarter fiscal 2025 results on February 3, 2025, after market close, with expectations of year-over-year earnings growth driven by strategic market focus and favorable funding environments [1][4][5]. Financial Performance - In the last reported quarter, AECOM's earnings exceeded the Zacks Consensus Estimate by 4.1% and grew 25.7% year over year, while revenues increased by 7% year over year [2]. - The Zacks Consensus Estimate for EPS for the upcoming quarter has decreased to $1.10 from$1.11, indicating a 4.8% increase compared to the previous year's EPS of $1.05 [3]. Market Strategy - AECOM's strategic focus on six key markets—United States, Canada, United Kingdom, Ireland, Australia, and the Middle East—contributes approximately 90% of its revenues and profits, which is expected to support earnings growth [4]. - The company’s balanced capital allocation strategy and restructuring initiatives are anticipated to enhance profitability and mitigate risks [4][7]. External Factors - The favorable public infrastructure funding environment in the U.S. and U.K., along with positive trends in the water design market, are likely to boost demand for AECOM's services [5]. - However, potential headwinds include foreign currency risks and global political uncertainties, which could impact revenue growth due to the company's reliance on government projects [6]. Earnings Prediction Model - The Zacks model indicates that AECOM may not achieve an earnings beat this quarter, as it has an Earnings ESP of -2.73% and a Zacks Rank of 4 (Sell) [8][9].