It has been about a month since the last earnings report for Jacobs Engineering Group Inc. . Shares have added about 2.5% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as 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.
Recent Earnings
Jacobs Engineering Group reported better-than-expected fourth-quarter fiscal 2017 results (ended Sep 29, 2017).
Earnings: Adjusted earnings in at 98 cents per share, higher than 77 cents per share in the year-ago quarter. The bottom-line also comfortably surpassed the Zacks Consensus Estimate of 82 cents.
For fiscal 2017, Jacobs posted adjusted earnings of $2.42 per share compared with $ $1.73 per share in fiscal 2016.
Revenues: Revenues improved to $2,653.9 million from $2,640.6 million in the prior-year quarter. The top line exceeded the Zacks Consensus Estimate of $2,597 million.
For fiscal 2017, Jacobs reported revenues of $10,022.8 million compared with $10,964.2 million in fiscal 2016.
Segment Details
At the Petroleum & Chemicals segment, revenues came in at $666.1 million, down 2.6% year over year. Aerospace & Technology's quarterly sales dropped 4.5% to $620.7 million. Industrial's revenues were down 2.8% year over year to $727.9 million.
However, Buildings & Infrastructure sales climbed 14.7% year over year $639.2 million.
Costs/Margin: Direct cost of contracts, a major expenditure for Jacobs, decreased 1.3% year over year to $2,179.6 million. Gross margin in the reported quarter came in at 17.9% compared with 16.3% in the year-ago quarter. The upside was driven by increased focus on more profit generating businesses and robust project execution.
Selling, general and administrative expenses were up approximately 5.3% year over year to $367.3 million. Operating profit improved to $107 million from $82.8 million in the year-earlier quarter. Operating margin was 4% compared with 3.1% in the prior-year quarter.
At the end of the reported quarter, the company's backlog was record high at $19.8 billion.
Balance Sheet/Share Repurchase Update: At the end of fiscal 2017, Jacobs' cash and cash equivalents were approximately $774.2 million compared with $655.7 million as of Sep 30, 2016. Long-term debt was $235 million compared with $385.3 million as of Sep 30, 2016.
The company's capital expenditure for the fiscal fourth quarter was $44.5 million compared with $21.3 million in the year-ago quarter.
Outlook: Jacobs aims to generate profitable commercial growth backed by sound restructuring programs and the latest CH2M buyout. The company also intends to reinforce its business through its strategic cost-saving plans and record backlog levels. Based on current market conditions, the company anticipates fiscal 2018 adjusted earnings to be in the $3.25-$3.60 per share range.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the past month as none of them issued any earnings estimate revisions.
VGM Scores
At this time, the stock has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile 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 primarily suitable for growth and momentum investors while also being suitable for those looking for value.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Jacobs Engineering (JEC) Up 2.5% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Jacobs Engineering Group Inc. . Shares have added about 2.5% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as 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.
Recent Earnings
Jacobs Engineering Group reported better-than-expected fourth-quarter fiscal 2017 results (ended Sep 29, 2017).
Earnings: Adjusted earnings in at 98 cents per share, higher than 77 cents per share in the year-ago quarter. The bottom-line also comfortably surpassed the Zacks Consensus Estimate of 82 cents.
For fiscal 2017, Jacobs posted adjusted earnings of $2.42 per share compared with $ $1.73 per share in fiscal 2016.
Revenues: Revenues improved to $2,653.9 million from $2,640.6 million in the prior-year quarter. The top line exceeded the Zacks Consensus Estimate of $2,597 million.
For fiscal 2017, Jacobs reported revenues of $10,022.8 million compared with $10,964.2 million in fiscal 2016.
Segment Details
At the Petroleum & Chemicals segment, revenues came in at $666.1 million, down 2.6% year over year. Aerospace & Technology's quarterly sales dropped 4.5% to $620.7 million. Industrial's revenues were down 2.8% year over year to $727.9 million.
However, Buildings & Infrastructure sales climbed 14.7% year over year $639.2 million.
Costs/Margin: Direct cost of contracts, a major expenditure for Jacobs, decreased 1.3% year over year to $2,179.6 million. Gross margin in the reported quarter came in at 17.9% compared with 16.3% in the year-ago quarter. The upside was driven by increased focus on more profit generating businesses and robust project execution.
Selling, general and administrative expenses were up approximately 5.3% year over year to $367.3 million. Operating profit improved to $107 million from $82.8 million in the year-earlier quarter. Operating margin was 4% compared with 3.1% in the prior-year quarter.
At the end of the reported quarter, the company's backlog was record high at $19.8 billion.
Balance Sheet/Share Repurchase Update: At the end of fiscal 2017, Jacobs' cash and cash equivalents were approximately $774.2 million compared with $655.7 million as of Sep 30, 2016. Long-term debt was $235 million compared with $385.3 million as of Sep 30, 2016.
The company's capital expenditure for the fiscal fourth quarter was $44.5 million compared with $21.3 million in the year-ago quarter.
Outlook: Jacobs aims to generate profitable commercial growth backed by sound restructuring programs and the latest CH2M buyout. The company also intends to reinforce its business through its strategic cost-saving plans and record backlog levels. Based on current market conditions, the company anticipates fiscal 2018 adjusted earnings to be in the $3.25-$3.60 per share range.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the past month 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, the stock has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile 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 primarily suitable for growth and momentum investors while also being suitable for those looking for value.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.