AECOM Technology (NYSE: ACM) reported Q4 EPS of $0.81, $0.04 better than the analyst estimate of $0.77. Revenue for the quarter came in at $3.35 billion versus the consensus estimate of $3.38 billion.

GUIDANCE:

AECOM Technology sees FY2022 EPS of $3.20-$3.40, versus the consensus of $3.24.

• AECOM expects adjusted1 EPS of between $3.20 and $3.40 and adjusted1 EBITDA5 of between $880 million and $920 million, which would reflect 17% and 8% year-over-year growth at the mid-point of the respective ranges.
• This guidance at the mid-point contemplates:
• Approximately 6% NSR3 growth, supported by improving growth opportunities and record contracted backlog.
• An at least 14.1% adjusted1 operating margin4, which would be a new annual high, and reflect the Company’s commitment to continuing to invest in people, clients and digital capabilities while delivering industry-leading profitability and progressing towards its 17% longer-term margin goal.
• An average fully diluted share count of 147 million, reflecting only shares repurchased to date, though the Company intends to repurchase stock in the year that would be an incremental benefit to earnings per share.
• An effective tax rate of approximately 26%, which reflects an expectation for a permanently lower tax rate as a result of changes in the business strategy and structure.
• The Company also expects free cash flow6 of between $450 million and $650 million, reflecting the highly cash generative nature of its Professional Services business.
• Capital expenditures are expected to approximate $160 million, reflecting a temporary increase in fiscal 2022 to support investments in people, clients and digital innovation, as well as ongoing real estate investments to align to with the Company’s flexible work programs.

Increased Fiscal 2024 Adjusted EPS Target

• Reflecting its outperformance in fiscal 2021 and strong start to fiscal 2022, AECOM increased its fiscal 2024 adjusted1 EPS target from $4.30+ to $4.75+, which would reflect an at least 19% CAGR from fiscal 2021 to fiscal 2024.
• The Company reiterated guidance for a 15% segment adjusted1 operating margin4 by fiscal 2024, and based on progress to date, which includes achieving nearly a 15% margin in the fourth quarter of fiscal 2021, the Company now has high conviction in delivering on its 17% longer-term margin goal.

For earnings history and earnings-related data on AECOM Technology (ACM) click here.