- Gross revenue down 4.8% Y/Y, operating income down 18.2%, EPS flat, new wins up 22% Y/Y and backlog up 22% Y/Y. Acquisition of URS expected to close in October.
- I am reiterating my long thesis and my recent $36 target price, offering just a 7% upside within a year due to potential acquisition integration setbacks and revenue weakness.
- The weak Q2 numbers further confirmed my already conservative outlook in my previous update. Integration of two large acquisitions at a time of falling organic sales will present a challenge.