UPDATE 1-Stantec posts "solid" quarter, tempers outlook

* Q3 adj EPS C$0.57 vs expectation C$0.55

* Full-year revenue now seen “stable” with 2009

* Stock down 1.4 pct at C$27.50 on TSX

OTTAWA, Nov 4 (BestGrowthStock) – Canadian engineering firm Stantec
Inc (STN.TO: ) (STN.N: ) reported a slightly higher-than-expected
quarterly profit on Thursday, but tempered the wording of its
full-year revenue-growth forecast to “stable” from its previous
“stable to modest”.

Stantec said the change reflects a slower U.S. recovery and
a stronger Canadian dollar. Analysts were not overly concerned
by the change and the stock fell 1.4 percent.

Dundee Capital Markets analyst Carolyn Dennis said the
adjusted forecast offsets largely solid quarterly results.

“That being said, we were not expecting significant organic
growth in 2011 and we continue to believe Stantec is in an
excellent position to capitalize on acquisition activities to
fuel growth in 2011,” she wrote in a note.

The Edmonton-based company made six acquisitions in the
third quarter, buying companies in North America and England.
Combined, the deals added close to 760 staff to Stantec, which
has about 10,000 employees.

Stantec said third-quarter net income was C$32.1 million
($32.1 million), or 70 Canadian cents a share, versus a
year-earlier loss of C$9.9 million, or 22 Canadian cents a

Stripping out a C$5.9 million gain from the sale of an
equity investment, Stantec said it earned C$26.2 million, or 57
Canadian cents a share. That compares with year-earlier
earnings, adjusted to exclude a C$35 million impairment charge,
of C$25 million, or 55 Canadian cents per share.

Analysts, on average, had expected a profit of 55 Canadian
cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 4.2 percent to C$386.7 million.

More-closely watched “net revenue”, which excludes
sub-consultant and other direct expenses, was 3.5 percent
higher at C$314.5 million.

Stantec shares dropped 40 Canadian cents to C$27.50 on the
Toronto Stock Exchange on Thursday afternoon. The stock has
lost about 4 percent of its value so far this year.

($1=$1.00 Canadian)
(Reporting by Susan Taylor; editing by Peter Galloway)

UPDATE 1-Stantec posts "solid" quarter, tempers outlook