URS Corp. (URS) reported first-quarter fiscal 2012 recurring earnings per share of $1.12, above the Zacks Consensus Estimate of $1.05 and increased 42% year over year.
Excluding an after-tax charge of 5 cents per share, relating to the pending acquisition of Flint Energy Services Ltd, earnings per share came in at $1.07 compared with 79 cents in the prior-year period.
Total Revenue
Total revenue in the quarter was $2.36 billion compared with $2.32 billion in the prior-year quarter, up 1.7%. Revenue in the quarter was aided by strong performance of the federal sector business.
Backlog at the end of the quarter was $14.1 billion compared with $14.3 billion at the end of December 30, 2011.
Segment Result
Infrastructure and Environment revenue in the quarter was $964.2 million compared with $909.9 million in the prior-year quarter, up 6%. Federal Services revenue was $717.1 million compared with $581.1 million a year ago, up 24%. Acquisition of Apptis Holdings Inc. contributed $59.7 million to Federal Services revenue. Energy and Construction revenue was $725.7 million compared with $866.4 million in the prior-year period, down 16%.
Income and Expenses
Operating income in the quarter was $163.9 million compared with $132.1 million in the prior-year quarter, up 24.1%. General and administrative expenses were $17.5 million compared to $22.4 million a year ago.
Balance Sheet and Cash Flow
Cash and cash equivalents were $1.31 billion at the end of the quarter compared with $436.0 million at the end of 2011. Long-term debt was $1.70 million compared with $737 million and shareowners equity was $3.44 billion compared with $3.38 billion at the end of 2011.
Dividend
On July 6, 2012, the company intends to pay a cash dividend of 20 cents per common share to stockholders of record as of June 15, 2012.
Outlook
The company reiterated its 2012 revenue guidance of $9.9 billion to $10.1 billion and EPS expectation of $3.95 and $4.05. URS Corp. is confident of achieving its target for the year based on its strong position in core markets.
URS Corp. provides engineering, construction and technical services. It is also a major U.S. federal government contractor in the areas of systems engineering and technical assistance, and operations and maintenance. Major competitors of URS are AECOM Technology Corporation (ACM), Fluor Corporation (FLR) and KBR Inc. (KBR).
We currently maintain our Neutral rating on URS Corp. with a Zacks #3 Rank (short-term Neutral recommendation) over the next one-to-three months.
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