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Stantec Inc. (STN - Free Report) reported better-than-expected second-quarter 2023 results, with earnings growing year over year.
Adjusted earnings (excluding 15 cents non-recurring items) of 74 cents per share exceeded the Zacks Consensus Estimate by 5.7% and improved 13.9% from the year-ago figure.
Total revenues of $952 million surpassed the consensus estimate by 4% but declined 11.7% on a year-over-year basis. The top line includes 11.2% organic growth.
Quarter Details
The project margin of $694 million increased 15.1% from the year-ago figure. Project margin, as a percentage of net revenues, was 54.3%.
Adjusted EBITDA grew 15.7% to $216 million on a year-over-year basis. Adjusted EBITDA margin was 16.9%, up 20 basis points from the previous-year figure.
The backlog increased to $6.6 billion up 11.4% from the Dec 31, 2022, figure. Of this 10% is due to organic growth
Stantec generated $31 million in cash from operating activities in the quarter.
2023 Outlook
The company now expects net revenues in 2023 to grow 10-13%, instead of the previously expected 7-11%, compared with 2022 levels.
Adjusted EBITDA margin is expected to be in the band of 16.3-16.7%, narrower from the prior expected range of 16-17%. STN targets to generate a return on invested capital of more than 10.5%.
Earnings Snapshot
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings per share (EPS) (excluding 37 cents from non-recurring items) of $2.85 beat the Zacks Consensus Estimate by 14.9% but matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis. Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted EPS of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.
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Stantec (STN) Q2 Earnings Surpass Estimates, Increase Y/Y
Stantec Inc. (STN - Free Report) reported better-than-expected second-quarter 2023 results, with earnings growing year over year.
Adjusted earnings (excluding 15 cents non-recurring items) of 74 cents per share exceeded the Zacks Consensus Estimate by 5.7% and improved 13.9% from the year-ago figure.
Total revenues of $952 million surpassed the consensus estimate by 4% but declined 11.7% on a year-over-year basis. The top line includes 11.2% organic growth.
Quarter Details
The project margin of $694 million increased 15.1% from the year-ago figure. Project margin, as a percentage of net revenues, was 54.3%.
Adjusted EBITDA grew 15.7% to $216 million on a year-over-year basis. Adjusted EBITDA margin was 16.9%, up 20 basis points from the previous-year figure.
The backlog increased to $6.6 billion up 11.4% from the Dec 31, 2022, figure. Of this 10% is due to organic growth
Stantec generated $31 million in cash from operating activities in the quarter.
2023 Outlook
The company now expects net revenues in 2023 to grow 10-13%, instead of the previously expected 7-11%, compared with 2022 levels.
Adjusted EBITDA margin is expected to be in the band of 16.3-16.7%, narrower from the prior expected range of 16-17%. STN targets to generate a return on invested capital of more than 10.5%.
Earnings Snapshot
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings per share (EPS) (excluding 37 cents from non-recurring items) of $2.85 beat the Zacks Consensus Estimate by 14.9% but matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis. Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted EPS of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.