AECOM (NYSE: ACM) shares plummeted 5.47% in pre-market trading on Tuesday following the release of its fourth-quarter earnings report and strategic announcements. Despite beating earnings estimates, the infrastructure consulting firm's revenue fell short of expectations, and the company revealed plans to review strategic alternatives for its construction management business.

AECOM reported adjusted earnings per share of $1.36 for Q4, surpassing the FactSet consensus estimate of $1.34. However, revenue for the quarter came in at $4.175 billion, missing analysts' expectations of $4.315 billion. The company's net income for the quarter stood at $132 million, with adjusted EBITDA reaching $329 million, slightly above the estimated $325.3 million.

In a significant move, AECOM announced it has initiated a review of strategic alternatives for its construction management business, including a potential sale. The company has retained Goldman Sachs as a financial advisor for this process. Starting from the first quarter results, the construction management business is expected to be classified as held for sale on the balance sheet. This decision appears to have contributed to investor uncertainty, despite AECOM's efforts to focus on its core consulting services. Additionally, the company increased its quarterly dividend by 19% to $0.31 per share and raised its adjusted EPS CAGR target to 15%+ for fiscal years 2026-2029, signaling confidence in its long-term financial prospects. However, these positive developments were overshadowed by the revenue miss and the strategic review announcement, leading to the sharp decline in stock price.