Spotting Winners: AECOM (NYSE:ACM) And Engineering and Design Services Stocks In Q4

As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the engineering and design services industry, including AECOM (NYSE:ACM) and its peers.

Companies providing engineering and design services boast ever-evolving technical expertise. Compared to their counterparts who manufacture and sell physical products, these companies can also pivot faster to more trending areas due to their smaller physical asset bases. Green energy and water conservation, for example, are current themes driving incremental demand in this space. On the other hand, those providing engineering and design services are at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.

The 5 engineering and design services stocks we track reported an exceptional Q4. As a group, revenues beat analysts’ consensus estimates by 7.7% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.3% since the latest earnings results.

AECOM (NYSE:ACM)

Founded in 1990 when a group of engineers from five companies decided to merge, AECOM (NYSE:ACM) provides various infrastructure consulting services.

AECOM reported revenues of $3.83 billion, down 4.6% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

AECOM delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 8.5% since reporting and currently trades at $93.98.

Is now the time to buy AECOM? Access our full analysis of the earnings results here, it’s free.

Best Q4: Sterling (NASDAQ:STRL)

Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ:STRL) provides civil infrastructure construction.

Sterling reported revenues of $755.6 million, up 51.5% year on year, outperforming analysts’ expectations by 18.2%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Sterling achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.1% since reporting. It currently trades at $400.

Is now the time to buy Sterling? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Dycom (NYSE:DY)

Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure.

Dycom reported revenues of $1.46 billion, up 34.4% year on year, exceeding analysts’ expectations by 6.9%. It may have had the worst quarter among its peers, but its results were still good as it also locked in an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.

As expected, the stock is down 7.3% since the results and currently trades at $373.90.

Read our full analysis of Dycom’s results here.

MasTec (NYSE:MTZ)

Involved in the 1996 Olympic Games MasTec (NYSE:MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.

MasTec reported revenues of $3.94 billion, up 15.8% year on year. This result topped analysts’ expectations by 5.9%. Overall, it was an exceptional quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ revenue estimates.

MasTec had the weakest full-year guidance update among its peers. The stock is up 1.3% since reporting and currently trades at $293.63.

Read our full, actionable report on MasTec here, it’s free.

EMCOR (NYSE:EME)

Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services

EMCOR reported revenues of $4.51 billion, up 19.7% year on year. This print surpassed analysts’ expectations by 5.3%. It was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is down 9.6% since reporting and currently trades at $725.

Read our full, actionable report on EMCOR here, it’s free.

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