URS Corp. Q4 Profit Tops View, But Revenue Miss, Guides 2014 In Line

(RTTNews) - Engineering, construction and technical services provider URS Corp. (URS) reported Monday a profit for the first quarter that plunged from last year, primarily reflecting a drop in revenues. Earnings per share topped analysts' expectations, while quarterly revenues missed their estimates. The company also provided earnings and revenue forecast for full-year 2014, in line with Street view.

"Notwithstanding the operational issues that affected our fourth quarter performance, URS generated strong operating cash flow in 2013 and remains well positioned across our market sectors to continue to generate substantial free cash flow and to deliver value to our stockholders," Chairman and CEO Martin Koffel said in a statement.

The San Francisco, California-based company reported net income of $19.2 million or $0.26 per share for the first quarter, sharply lower than $70.6 million or $0.95 per share in the prior-year quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to earn $0.19 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter decreased to $2.66 billion from $2.97 billion in the same quarter last year, and missed eleven Wall Street analysts' consensus estimate of $2.68 billion.

Segment-wise, infrastructure & environment revenues decreased to $925 million from $941 million in the year-ago quarter, and federal services revenues slipped to $487 million from $604 million last year.

Revenues from energy & construction declined to $742 million from $853 million in the prior-year quarter, and oil & gas revenues totaled $536 million, down from $605 million a year ago.

Operating income for the quarter decreased to $114 million from $171 million reported in the prior-year quarter.

On Friday, the company declared a quarterly cash dividend of $0.22 per common share, an increase from $0.21 per common share, payable on April 11 to stockholders of record as of March 21, 2014.

The company also said it is accelerating its prior plan to return a total of at least $500 million to stockholders through stock repurchases and dividends by the end of 2015.

For fiscal 2013, the company reported net income of $247.2 million or $3.31 per share, lower than $310.6 million or $4.17 per share in the prior year. Cash earnings for the year was $4.26 per share, compared to $5.06 per share last year. Revenues for the full year edged up to $10.99 billion from $10.97 billion in the previous year.

Analysts expected the company to report full-year 2013 earnings of $3.26 per share on annual revenues of $11.01 billion.

Looking ahead to fiscal 2014, URS said it expects earnings in a range of $3.20 to $3.50 per share and cash earnings in the range of $4.13 to $4.43 per share, on projected revenues between $10.8 billion to $11.2 billion. Street is currently looking for full-year 2014 earnings of $3.28 per share, on revenues of $10.88 billion.

URS closed Monday's regular trading session at $45.96, down $0.54 or 1.16% on a volume of 1.79 million share.