UPDATE 1-Stantec 2nd-quarter earnings make modest gain

* EPS C$0.49/shr vs C$0.48/shr last year

* Revenue grows 13 pct to C$388 mln

* Stock falls about 3 pct to C$27.29 (Adds details)

OTTAWA, Aug 6 (Reuters) - Engineering firm Stantec Inc (STN.TO) (STN.N) said on Thursday that quarterly profit made a modest gain as its diverse operations helped offset the impact of "challenging market conditions".

The acquisition-hungry company forecast a "stable" outlook for the rest of the year, saying it does not expect a significant impact from government stimulus funding until the end of 2009 or early 2010.

Spending by governments in Canada and the United States on such projects as roads, buildings and bridges will help maintain Stantec's business backlog and replace some projects scaled back due to the economy, the company said.

Net income increased slightly to C$22.35 million ($21 million), or 49 Canadian cents a share, in the second quarter, from C$22.1 million, or 48 Canadian cents a share, a year earlier, Stantec said.

Revenue rose 13 percent to C$388.1 million from C$343.3 million.

On average, analysts had expected earnings of 50 Canadian cents a share and revenue of C$376.8 million, according to Reuters Estimates.