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Engineering Stocks' Earnings to Watch on Aug 9: JEC, ACM

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According to the Zacks Industry classification, Engineering Stocks is broadly grouped under Construction, one of the 16 broad Zacks sectors. Below we briefly discuss the broader sectors’ earnings trend so far in the Apr–Jun 2016 quarter.

As of Aug 5, roughly 92.3% of Construction stocks in the S&P 500 Group reported results for the April–June quarter, recording 9.5% increase in earnings and 6.2% growth in revenue. Considering the results of all Construction stocks in the S&P 500 Group, earnings for the sector are predicted to increase 7.3%, while revenue will grow 5.1%.

What’s in Store for 2 Engineering Stocks, JEC, ACM, for Apr–Jun ‘16 Quarter?

Below we discuss briefly the expectations from the upcoming results (April–June quarter) for two engineering stocks:

Jacobs Engineering Group Inc. : This engineering stock is slated to release its third-quarter fiscal 2016 (ended Jun 2016) results on Aug 9, before the market opens. In the four trailing quarters, the company reported better-than-expected results on all occasions with an average positive earnings surprise of 14.92%.

JACOBS ENGIN GR Price and EPS Surprise

JACOBS ENGIN GR Price and EPS Surprise | JACOBS ENGIN GR Quote

Our proven model does not conclusively show that Jacobs Engineering Group will be able to pull an earnings surprise this quarter. This is because the company lacks the right combination of two key ingredients — a positive Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold). The company currently carries a Zacks Rank #2 and a 0.00% Earnings ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock has decreased 1.3% to 74 cents per share for the third quarter. (For more please read: Will Q3 Earnings Hold a Surprise for Jacobs Stock?)

AECOM (ACM - Free Report) : This engineering company is slated to release its third-quarter fiscal 2016 (ended Jun 2016) results on Aug 9. The company reported lower-than-expected results in two of the four trailing quarters, while posting better-than-expected results in two. Average earnings surprise was a positive 3.58%.

AECOM TECH CORP Price and EPS Surprise

AECOM TECH CORP Price and EPS Surprise | AECOM TECH CORP Quote

Our proven model does not conclusively show that AECOM will likely beat earnings this quarter because it currently carries a Zacks Rank #2 and 0.00% Earnings ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock has decreased 1.4% to 70 cents for the third quarter.

Stay tuned! Check back on our full write-up on earnings release of Jacobs Engineering Group.

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