Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, May 11, 2012

Article Excerpt

STANTEC INC., $31.53, symbol STN on Toronto, sells a range of consulting, project delivery, design and technology services. The company’s clients operate in a variety of industries, including transportation, construction and oil and gas. Stantec has over 11,000 employees in 170 locations throughout North America. It also has four international offices. In the three months ended March 31, 2012, the company’s revenue rose 7.4%, to $439.1 million from $408.7 million a year earlier. Acquisitions were part of the reason for the gains; Stantec is also working on a number of new projects. Earnings rose 4.5%, to $24.9 million, or $0.55 a share, from $23.8 million, or $0.52. Stantec continues to grow by acquisition. In 2011, it bought five companies. This year, its purchases include transportation-consulting firm ABMB Engineers of Baton Rouge, Louisiana, and architecture and interior design firm PHB Group, based in St. John’s, Newfoundland. Continually buying and integrating new companies adds risk—including the risk of writedowns. The company cuts its costs by sharing…