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KBR (KBR) Surges 12.6%: Is This an Indication of Further Gains?
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KBR Inc. (KBR - Free Report) shares ended the last trading session 12.6% higher at $35.55. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.9% loss over the past four weeks.
During its Investor Day on Mar 25, KBR set new long-term financial targets. Stuart Bradie, KBR president and chief executive officer said, “We are on a path to attractive revenue growth, margin expansion and cash generation, charting a course targeting to more than double our adjusted earnings per share by 2025 over 2021 levels." Shares of KBR have jumped following the news given the optimism surrounding the company's business outlook.
Also, KBR declared 11 cents per share quarterly dividend, a 10% increase from the prior dividend of 10 cents.
Price and Consensus
This the engineering, construction company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +18%. Revenues are expected to be $1.47 billion, down 4.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For KBR, the consensus EPS estimate for the quarter has been revised 8.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on KBR going forward to see if this recent jump can turn into more strength down the road.
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KBR (KBR) Surges 12.6%: Is This an Indication of Further Gains?
KBR Inc. (KBR - Free Report) shares ended the last trading session 12.6% higher at $35.55. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.9% loss over the past four weeks.
During its Investor Day on Mar 25, KBR set new long-term financial targets. Stuart Bradie, KBR president and chief executive officer said, “We are on a path to attractive revenue growth, margin expansion and cash generation, charting a course targeting to more than double our adjusted earnings per share by 2025 over 2021 levels." Shares of KBR have jumped following the news given the optimism surrounding the company's business outlook.
Also, KBR declared 11 cents per share quarterly dividend, a 10% increase from the prior dividend of 10 cents.
Price and Consensus
This the engineering, construction company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +18%. Revenues are expected to be $1.47 billion, down 4.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For KBR, the consensus EPS estimate for the quarter has been revised 8.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on KBR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>