WSP Global Q4 beats revenue expectations but profit falls on U.S. tax charge
Posted Mar 15, 2018 12:00:35 PM.
Last Updated Mar 15, 2018 12:40:30 PM.
This article is more than 5 years old.
MONTREAL – Engineering firm WSP Global Inc. beat analyst expectations with revenue of $1.48 billion in the fourth quarter of 2017, versus $1.33 billion a year earlier, but net earnings came up short at $30 million, compared with $56 million a year ago.
The Montreal-based company recorded a $16-million non-cash income tax charge to account for lower U.S. corporate taxes but said the change announced by the Trump government late last year will benefit its bottom line going forward.
It added there were four fewer billable days in the quarter in 2017 versus the same period in 2016.
CEO Alexandre L’Heureux pointed out that WSP completed 10 strategic acquisitions last year, expanding into the Australia/New Zealand region and Latin America and added 5,000 new workers.
He said the company expects to have organic growth of one- to four-per cent this year.
RBC analyst Derek Spronck said in a report that WSP’s growth profile from a combination of organic growth, acquisitions, and margin expansion makes it attractive for investors.
Companies mentioned in this story: (TSX:WSP)
