AECOM on Tuesday reported $4.98 billion in revenue for its third quarter of fiscal 2019, 3.3% less than the $5.15 billion it took in during the same period a year ago.
Revenue at the Los Angeles-based government contractor was affected by lower than expected storm recovery work in the U.S. Virgin Islands.
The company’s net income for the quarter ended June 30 was $84 million, or $0.52 per share, compared to about $61 million, or $0.37, in the same quarter in fiscal 2018. That represents a roughly 41% improvement, according to AECOM’s earnings press release.
AECOM also reiterated its prior earnings guidance of between $2.60 and $2.90 per share for the fiscal year. The company continues to exit business in 30 countries where returns are less than desired.
The company in June announced plans to spin off its Management Services business, which includes its contracts for the U.S. Departments of Defense and Energy, along with its commercial nuclear decommissioning operations. The segment reported a new quarterly revenue record of more than $1 billion, about 10% higher than the $935 million a year ago, thanks to strong funding for DOE and defense contracts held by AECOM.
The company’s Construction Services segment recorded revenue of about $1.9 billion, down from $2.1 billion a year ago. Design and Consulting Services took in just over $2 billion for the quarter, dropping slightly from $2.1 billion in the third quarter of fiscal 2018.
AECOM executives will hold a conference call with Wall Street investors at noon Eastern time today.
