NEW YORK (TheStreet) -- URS Corporation (URS)  is plummeting on Thursday after management downwardly revised its 2013 guidance.

By noon, shares had plunged 12.6% to $43.13.

The construction services provider announced it expects to report full-year net income between $3.20 and $3.30 a share, far below previous guidance of $4.10 to $4.25 a share. Analysts surveyed by Thomson Reuters had expected fiscal earnings of $4.09 a share.

Full-year sales are expected to be around $11 billion, at the low end of its previous guidance of $11 billion to $11.5 billion.

"We are extremely disappointed with the company's fourth-quarter financial performance, which fell significantly short of our expectations," said CEO Martin Koffel in a statement.

Management cited execution issues in its oil and gas division as reason for the deterioration in projected earnings.

"We also experienced project delays caused, in part, by the residual effects of lower-than-expected natural gas prices and pipeline capacity," Koffel added.

Over fiscal 2014, the San Francisco-based business expects revenues of $10.8 billion to $11.2 billion, with per-share earnings between $3.20 and $3.50. Analysts had consensus of $4.20 a share in net income and $11.28 billion in sales.

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TheStreet Ratings team rates URS CORP as a Buy with a ratings score of B+. The team has this to say about their recommendation:

"We rate URS CORP (URS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Despite currently having a low debt-to-equity ratio of 0.48, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that URS's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.74 is high and demonstrates strong liquidity.
  • URS, with its decline in revenue, slightly underperformed the industry average of 0.5%. Since the same quarter one year prior, revenues slightly dropped by 7.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • URS CORP's earnings per share declined by 16.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, URS CORP turned its bottom line around by earning $4.17 versus -$6.03 in the prior year. For the next year, the market is expecting a contraction of 0.5% in earnings ($4.15 versus $4.17).