Topic: How To Invest

Stock Pickers Digest Hotline – Friday, May 26, 2017

Article Excerpt

STANTEC INC., $31.19, symbol STN on Toronto, sells a range of consulting, design and technology services. Its clients operate in the oil and gas industry, transportation and construction, among several other areas. For the three months ended March 31, 2017, the company’s recent acquisitions and a stronger U.S. dollar boosted its revenue to $873.8 million. That’s a 39.0% jump from the $628.6 million in sales a year earlier. Costs related to those recent acquisitions slowed profit. Earnings, excluding one-time items, rose 21.8% in the quarter, to $45.8 million from $37.6 million. Per-share earnings were unchanged at $0.40, due to more shares outstanding. The company continues to grow through acquisitions. It paid $795 million U.S. for MWH in May 2016. With 187 offices in 26 countries, that’s Stantec’s biggest purchase to date. MWH also gives the company a major global presence in the water infrastructure industry. By sharing administrative expenses, financing and employee benefits among its businesses, Stantec cuts its costs. However, continually buying other…