URS shares rise on strong 3Q, raised guidance

For the three months ended in September, net income climbed to $65.8 million, or 79 cents per share, compared with $38.7 million, or 73 cents per share, in the year-earlier period, the San Francisco-based company said.

Analysts polled by Thomson Reuters expected, on average, 63 cents.

URS used a higher number of shares outstanding to calculate earnings per share in the recently completed quarter.

Revenue more than doubled to $2.59 billion from $1.27 billion. Analysts expected $2.53 billion in sales.

The company also increased its estimate of 2008 net income to a range of $215 million to $223 million, up from its previous estimate of between $197 million and $207 million. Wall Street expects $207.9 million.

Finally, URS increased its 2008 profit forecast to $2.60 to $2.70 per share, from its previous estimate of between $2.36 and $2.48 per share. Wall Street expects earnings of $2.50 per share.

"Our strong position in markets that are resilient to economic downturns and the fact that more than 50 percent of our revenues are derived from government funding give us confidence in our ability to deliver revenue and profit growth next year," Chief Executive Martin M. Koffel said in a statement.

"Our optimism is supported by our $18 billion backlog and $33.1 billion book of business, both of which are records for the company."

In afternoon trading, shares gained 39 cents to $29.34, after earlier in the session climbing more than 10 percent to $31.99. In the last 52 weeks the stock has ranged from $19.94 to $64.19.