AECOM (ACM Quick QuoteACM - Free Report) is scheduled to report its first-quarter fiscal 2025 (ended Dec. 31, 2024) results on Feb. 3, after market close.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 4.1% and grew 25.7% year over year. Revenues grew 7% year over year as well.

AECOM’s earnings topped the consensus mark in three of the last four quarters and missed on the remaining occasion, the average surprise being 5.2%.

ACM’s Trend in Estimate Revision

For the fiscal first quarter, the Zacks Consensus Estimate for earnings per share (EPS) has moved downward to $1.10 from $1.11 in the past 30 days. However, the estimated figure indicates a 4.8% increase from the year-ago quarter’s level of $1.05 per share.

Factors Likely to Influence AECOM’s Q1 Results

AECOM’s fiscal first-quarter earnings are expected to have grown year over year on the back of its strategic move of focusing on the highest growth, best-returning and lower risks six markets. The markets include the United States, Canada, United Kingdom, Ireland, Australia and the Middle East, which contribute about 90% of its revenues and profits. This restructuring move, along with its balanced capital allocation strategy, is likely to have aided its bottom-line growth, thereby ensuring profitability and de-risking the business profile.

Furthermore, the robust public infrastructure funding environment in the United States and the United Kingdom, along with favorable global market trends in key sectors like the water design market, is likely to have been boosting the demand for AECOM’s services.

However, headwinds in the form of foreign currency risks and political uncertainties around the world are likely to have been potential concerns to ACM’s prospects. As the majority of the company’s revenues depend on government projects, any situation of global socio-political unrest is expected to directly hit its top-line growth and cash flow.

Nonetheless, the restructuring initiatives undertaken by the company, along with its balanced approach to its cash flow, are expected to have offset the negative trends.

What the Zacks Model Unveils About ACM

Our proven model does not conclusively predict an earnings beat for AECOM this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as elaborated below.

Earnings ESP: ACM has an Earnings ESP of -2.73%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.

Watsco, Inc. (WSO Quick QuoteWSO - Free Report) currently has an Earnings ESP of +0.94% and a Zacks Rank of 2.

WSO’s earnings for the fourth quarter of 2024 are expected to increase 3.4%. The company reported lower-than-expected earnings in each of the last four quarters, the negative average surprise being 10%.

Louisiana-Pacific Corporation (LPX Quick QuoteLPX - Free Report) has an Earnings ESP of +12.93% and a Zacks Rank of 3.

LPX reported better-than-expected earnings in each of the last four quarters, the average surprise being 30.7%. The company’s earnings for the fourth quarter of 2024 are expected to increase 11.3%.

Sterling Infrastructure, Inc. (STRL Quick QuoteSTRL - Free Report) currently has an Earnings ESP of +2.99% and a Zacks Rank of 3.

STRL’s earnings for the fourth quarter of 2024 are expected to increase 3.1%. The company reported better-than-expected earnings in each of the last four quarters, the average surprise being 21.5%.