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ACM NYSE· AECOM
Earnings report Q4 2023

AECOM Capital's Revenue Declines by 33.3% in the Latest Quarter

Segments of revenue

AECOM Capital reported a decline in revenue for the latest quarter. The company's revenue decreased from $0.3 million in the corresponding period last year to $0.2 million, representing a decline of 33.3%.

Strengths

Despite the decline in revenue, AECOM Capital remains a leading global provider of professional infrastructure consulting services. The company offers a wide range of services, including advisory, planning, consulting, architectural and engineering design, construction, program management, and investment and development services. AECOM Capital's ability to provide fee-based knowledge-based services and generate revenue from client projects highlights its strength in the industry.

Challenges

The decrease in revenue for the latest quarter poses a challenge for AECOM Capital. The company experienced a decline of $0.1 million, which can be attributed to various factors. The management report mentions impairment losses recognized in the first quarter of fiscal 2024 as the primary reason for the decrease in equity earnings of joint ventures. This indicates potential challenges in managing joint ventures and the need for effective risk management strategies.

Noteworthy

AECOM Capital's revenue is subject to seasonal trends, with higher revenue typically observed in the last half of the fiscal year. The fourth quarter, which falls between July 1 and September 30, is typically the strongest quarter for the company. This trend is influenced by the U.S. federal government's tendency to authorize more work during the period preceding the end of AECOM Capital's fiscal year. It is important to consider this seasonality factor when analyzing the company's performance.

Summary

AECOM Capital's latest quarter performance reflects a decline in revenue by 33.3%. Despite this decrease, the company remains a prominent player in the global infrastructure consulting services industry. AECOM Capital's diverse range of services and its ability to generate revenue from client projects demonstrate its strength in the market. However, the decline in revenue and impairment losses in joint ventures present challenges that need to be addressed. The seasonal nature of the company's revenue should also be taken into account when evaluating its performance.

Source documents

Form 10-Q  filed on Feb 07, 2024
73 pages scanned

Reference data

Company financials Q4 revenue 3.90B
Analyst estimates Q4 EPS beat by 8.31%
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