- AECOM’s PTS segment (~88% of revenues) is set to overlap easier comparisons from current quarters onwards.
- This coupled with strength in key end markets and stabilization of Australian business bodes well for the company’s cyclical recovery.
- Sell-side is way too conservative when they are modeling year over year decline in EPS in the current quarter.
- Even with difficult comparisons and federal shutdown last quarter, the company posted year over year growth in EPS in the last quarter so current quarter will likely be much better.
- I see at least 30% upside over the next couple of months driven by multiple expansion and upward revision in estimates.