It has been about a month since the last earnings report for Jacobs Engineering Group Inc. . Shares have lost about 4.7% in the past month, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Fiscal Second-Quarter 2017 Highlights
Jacobs Engineering Group reported mixed second-quarter fiscal 2017 (ended Mar 31, 2017) results.
Quarterly adjusted earnings came in at $0.78 per share, beating the Zacks Consensus Estimate of $0.71. The bottom line also came higher than the year-ago tally of $0.75 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/Share Repurchase Update: 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.
The company believes that the inaugural dividend scheme of $0.15 per share, as well as the ongoing share repurchase program would ensure its commitment toward shareholders, moving ahead.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Jacobs Engineering Group Inc. Price and Consensus
VGM Scores
At this time, Jacobs Engineering's stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. The stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for growth investors than those looking for value.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
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Why Is Jacobs Engineering (JEC) Down 4.7% Since the Last Earnings Report?
It has been about a month since the last earnings report for Jacobs Engineering Group Inc. . Shares have lost about 4.7% in the past month, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Fiscal Second-Quarter 2017 Highlights
Jacobs Engineering Group reported mixed second-quarter fiscal 2017 (ended Mar 31, 2017) results.
Quarterly adjusted earnings came in at $0.78 per share, beating the Zacks Consensus Estimate of $0.71. The bottom line also came higher than the year-ago tally of $0.75 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/Share Repurchase Update: 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.
The company believes that the inaugural dividend scheme of $0.15 per share, as well as the ongoing share repurchase program would ensure its commitment toward shareholders, moving ahead.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Jacobs Engineering Group Inc. Price and Consensus
Jacobs Engineering Group Inc. Price and Consensus | Jacobs Engineering Group Inc. Quote
VGM Scores
At this time, Jacobs Engineering's stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. The stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for growth investors than those looking for value.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.