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Jacobs (JEC) Q2 Earnings Beat Estimates, Outlook Positive
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Jacobs Engineering Group Inc. reported mixed second-quarter fiscal 2017 (ended Mar 31, 2017) results.
Quarterly adjusted earnings came in at 78 cents per share, beating the Zacks Consensus Estimate of 71 cents. The bottom line also came higher than the year-ago tally of 75 cents per share.
Revenues
Revenues in the fiscal second quarter declined 17.2% year over year to $2,302.6 million. The top line also fell short of the Zacks Consensus Estimate of $2,614 million.
Eliminating the impact of restructuring and other charges, quarterly revenues came in at $2,319.1 million.
Segment Details
Revenues of Petroleum & Chemicals segment came in at $557.8 million, plunging 35.6% year over year. Aerospace & Technology segment’s quarterly sales dropped 13.8% to $577 million. Industrial segment’s revenues were down 12.6% year over year to $582.5 million.
However, Buildings & Infrastructure segments’ sales inched up 1.1% year over year $585.2 million.
Costs/Margin
Direct cost of contracts, a major expenditure for Jacobs, decreased 19.4% year over year to $1,883.3 million. Selling, general and administrative expenses edged down approximately 1.8% year over year to $351.1 million.
The company’s operating margin contracted 10 basis points (bps) year over year to 3%.
At the end of the first six months of fiscal 2017, the company’s backlog totaled $18.5 billion, up 1.4% year over year.
Balance Sheet
As of Mar 31, 2017, Jacobs’ cash and cash equivalents were approximately $674.6 million compared with $655.7 million as of Sep 30, 2016. Long-term debt was $334.9 million compared to $385.3 million as of Sep 30, 2016.
The company’s capital expenditure at the end of the fiscal second quarter was $24.7 million, as against $13.3 million incurred in the year-ago quarter.
Outlook
Jacobs aims to generate profitable commercial growth on the back of sound restructuring programs. The company intends to drive its business on the back of strategic cost saving plans and record backlog levels. Based on the current market conditions, the company anticipates fiscal 2017 earnings to lie within the $3.00–$3.30 per share range.
Notably, this Zacks Rank #2 (Buy) company believes that the inaugural dividend scheme of 15 cents per share, as well as the ongoing share repurchase program would ensure its commitment toward shareholders, moving ahead.
Other Key Picks
Some other top ranked stocks in the industry are listed below:
Armstrong World Industries, Inc. (AWI - Free Report) currently carries a Zacks Rank #2 and has an average positive earnings surprise of 1.73% for the last four quarters.
TopBuild Corp. (BLD - Free Report) also carries a Zacks Rank #2 and generated an average positive earnings surprise of 27.38% over the past four quarters.
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While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
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Jacobs (JEC) Q2 Earnings Beat Estimates, Outlook Positive
Jacobs Engineering Group Inc. reported mixed second-quarter fiscal 2017 (ended Mar 31, 2017) results.
Quarterly adjusted earnings came in at 78 cents per share, beating the Zacks Consensus Estimate of 71 cents. The bottom line also came higher than the year-ago tally of 75 cents per share.
Revenues
Revenues in the fiscal second quarter declined 17.2% year over year to $2,302.6 million. The top line also fell short of the Zacks Consensus Estimate of $2,614 million.
Eliminating the impact of restructuring and other charges, quarterly revenues came in at $2,319.1 million.
Segment Details
Revenues of Petroleum & Chemicals segment came in at $557.8 million, plunging 35.6% year over year. Aerospace & Technology segment’s quarterly sales dropped 13.8% to $577 million. Industrial segment’s revenues were down 12.6% year over year to $582.5 million.
However, Buildings & Infrastructure segments’ sales inched up 1.1% year over year $585.2 million.
Costs/Margin
Direct cost of contracts, a major expenditure for Jacobs, decreased 19.4% year over year to $1,883.3 million. Selling, general and administrative expenses edged down approximately 1.8% year over year to $351.1 million.
The company’s operating margin contracted 10 basis points (bps) year over year to 3%.
At the end of the first six months of fiscal 2017, the company’s backlog totaled $18.5 billion, up 1.4% year over year.
Balance Sheet
As of Mar 31, 2017, Jacobs’ cash and cash equivalents were approximately $674.6 million compared with $655.7 million as of Sep 30, 2016. Long-term debt was $334.9 million compared to $385.3 million as of Sep 30, 2016.
The company’s capital expenditure at the end of the fiscal second quarter was $24.7 million, as against $13.3 million incurred in the year-ago quarter.
Outlook
Jacobs aims to generate profitable commercial growth on the back of sound restructuring programs. The company intends to drive its business on the back of strategic cost saving plans and record backlog levels. Based on the current market conditions, the company anticipates fiscal 2017 earnings to lie within the $3.00–$3.30 per share range.
Notably, this Zacks Rank #2 (Buy) company believes that the inaugural dividend scheme of 15 cents per share, as well as the ongoing share repurchase program would ensure its commitment toward shareholders, moving ahead.
Other Key Picks
Some other top ranked stocks in the industry are listed below:
Boise Cascade Company (BCC - Free Report) generated an outstanding average positive earnings surprise of 114.74% over the trailing four quarters and currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Armstrong World Industries, Inc. (AWI - Free Report) currently carries a Zacks Rank #2 and has an average positive earnings surprise of 1.73% for the last four quarters.
TopBuild Corp. (BLD - Free Report) also carries a Zacks Rank #2 and generated an average positive earnings surprise of 27.38% over the past four quarters.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>