MONTREAL — WSP Global Inc. missed expectations even though its net earnings increased 6.6 per cent to $93.7 million in the third quarter on higher revenues.
The Montreal-based engineering consultancy earned 89 cents per diluted share, up from 84 cents per share or $87.9 million a year earlier.
Adjusted net earnings were $99.8 million or 95 cents per share, up from $99.3 million or 95 cents per share in the prior year.
Net revenues for the period ended Sept. 28 climbed 15.3 per cent to $1.69 billion, up from $1.47 billion in the third quarter of 2018.
WSP was expected to earn $1.10 per share in adjusted profits on $1.7 billion of revenues, according to financial markets data firm Refinitiv.
Chief executive Alexandre L’Heureux said the company expects its net revenues and adjusted EBITDA to reach the high end of its guidance for the full year.
The company also announced that Alain Michaud has been appointed chief financial officer, replacing Bruno Roy who is leaving next March after three years on the job.
Derek Spronck of RBC Dominion Securities Inc. described the results as strong and underpinned by “healthy organic trends” of 4.4 per cent that will generate free cash flow to fund new acquisitions.
“We note WSP’s strategic playbook is well defined and proven, and as such, we see today’s results as confirmation that positive underlying operational and financial momentum continues to accelerate.”
This report by The Canadian Press was first published Nov. 5, 2019.
Companies in this story: (TSX:WSP)
The Canadian Press