Analyst Note
| Krzysztof Smalec, CFA |While nothing in Aecom’s fiscal second-quarter earnings release materially alters our long-term outlook for the firm, we’ve increased our fair value estimate to $73 from $71, mostly due to time value of money. Aecom increased its adjusted EPS by 24% year over year, from $0.67 to $0.83. Reported EPS of $0.34 included a roughly $69 million pretax expense related to the firm’s decision to exit its operations in Russia. The company expects the cash impact from the exit to be around $10 million.