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Jacobs (J) to Report Q3 Earnings: What's in the Offing?
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Jacobs Engineering Group Inc. (J - Free Report) is slated to report third-quarter fiscal 2021 results on Aug 3, before the opening bell.
In the last reported quarter, the company’s earnings and revenues beat the respective Zacks Consensus Estimate by 21.2% and 1.5%. On a year-over-year basis, this leading provider of professional, technical and construction services’ earnings and revenues grew 19% and 3.5%, respectively.
Jacobs’ earnings topped the consensus mark in all the last four quarters, with the average being 21.7%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been unchanged at $1.37 over the past 30 days. The estimated figure indicates an 17.5% increase from $1.26 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $3.57 billion, suggesting 9.5% growth from the year-ago reported figure of $3.26 billion.
Jacobs Engineering Group Inc. Price and EPS Surprise
Jacobs’ fiscal third-quarter earnings and revenues are expected to have improved from the year-ago period. Its strategic focus on transforming itself from an engineering and construction to a global technology-forward solutions company is expected to reflect on fiscal third-quarter results. Also, higher-margin backlog, focus on generating efficiencies through digital and technological solutions along with solid project execution are expected to have boosted its growth. Again, Jacobs is expected to have gained from focus on digital modernization of the business. The U.S. Department of Defense’s increased focus on strategic data utilization is also likely to have driven growth for Jacobs.
Its continuous shift to digital and leadership in strategic end markets like space exploration, life sciences, cyber as well as water solutions is likely to have benefited the company’s fiscal third-quarter performance.
Segment-wise, Jacobs’s People & Places Solutions or P&PS segment (comprising 63% of total revenues) is expected to have witnessed higher revenues. Higher spending from the transportation sector and accelerated investments toward drinking water, wastewater, flood protection as well as climate resilience might have aided the company’s fiscal third-quarter performance. Rapid implementation of digital technologies has been optimizing clients’ operational spend and mitigating their revenue challenges. Moreover, environmental and green economy projects have remained strong.
The Zacks Consensus Estimate for the P&PS segment’s revenues is pegged at $2,151 million, indicating a 5.9% year-over-year increase.
Higher-margin mix in the sales pipeline and lower costs arising from proper implementation of Focus 2023 initiatives are likely to have aided margins. The Zacks Consensus Estimate for the P&PS segment’s operating profit is pegged at $201 million, indicating 5.8% growth from a year ago.
The Critical Mission Solutions or CMS segment (comprising 37% of total revenues) is expected to have benefited from persistently strong performance of the Cyber and Mission-IT business. The Zacks Consensus Estimate for the CMS segment’s revenues is pegged at $1,262 million, indicating 4.2% growth from a year ago.
The consensus mark for CMS segment’s operating profit is $103 million, suggesting 14.4% growth from $90 million a year ago.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Jacobs this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Primoris Services Corporation (PRIM - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #3.
Quanta Services, Inc. (PWR - Free Report) has an Earnings ESP of +10.32% and a Zacks Rank #2.
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Jacobs (J) to Report Q3 Earnings: What's in the Offing?
Jacobs Engineering Group Inc. (J - Free Report) is slated to report third-quarter fiscal 2021 results on Aug 3, before the opening bell.
In the last reported quarter, the company’s earnings and revenues beat the respective Zacks Consensus Estimate by 21.2% and 1.5%. On a year-over-year basis, this leading provider of professional, technical and construction services’ earnings and revenues grew 19% and 3.5%, respectively.
Jacobs’ earnings topped the consensus mark in all the last four quarters, with the average being 21.7%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been unchanged at $1.37 over the past 30 days. The estimated figure indicates an 17.5% increase from $1.26 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $3.57 billion, suggesting 9.5% growth from the year-ago reported figure of $3.26 billion.
Jacobs Engineering Group Inc. Price and EPS Surprise
Jacobs Engineering Group Inc. price-eps-surprise | Jacobs Engineering Group Inc. Quote
Factors to Note
Jacobs’ fiscal third-quarter earnings and revenues are expected to have improved from the year-ago period. Its strategic focus on transforming itself from an engineering and construction to a global technology-forward solutions company is expected to reflect on fiscal third-quarter results. Also, higher-margin backlog, focus on generating efficiencies through digital and technological solutions along with solid project execution are expected to have boosted its growth. Again, Jacobs is expected to have gained from focus on digital modernization of the business. The U.S. Department of Defense’s increased focus on strategic data utilization is also likely to have driven growth for Jacobs.
Its continuous shift to digital and leadership in strategic end markets like space exploration, life sciences, cyber as well as water solutions is likely to have benefited the company’s fiscal third-quarter performance.
Segment-wise, Jacobs’s People & Places Solutions or P&PS segment (comprising 63% of total revenues) is expected to have witnessed higher revenues. Higher spending from the transportation sector and accelerated investments toward drinking water, wastewater, flood protection as well as climate resilience might have aided the company’s fiscal third-quarter performance. Rapid implementation of digital technologies has been optimizing clients’ operational spend and mitigating their revenue challenges. Moreover, environmental and green economy projects have remained strong.
The Zacks Consensus Estimate for the P&PS segment’s revenues is pegged at $2,151 million, indicating a 5.9% year-over-year increase.
Higher-margin mix in the sales pipeline and lower costs arising from proper implementation of Focus 2023 initiatives are likely to have aided margins. The Zacks Consensus Estimate for the P&PS segment’s operating profit is pegged at $201 million, indicating 5.8% growth from a year ago.
The Critical Mission Solutions or CMS segment (comprising 37% of total revenues) is expected to have benefited from persistently strong performance of the Cyber and Mission-IT business. The Zacks Consensus Estimate for the CMS segment’s revenues is pegged at $1,262 million, indicating 4.2% growth from a year ago.
The consensus mark for CMS segment’s operating profit is $103 million, suggesting 14.4% growth from $90 million a year ago.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Jacobs this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Jacobs, which shares space with AECOM (ACM - Free Report) in the Zacks Engineering - R and D Services industry, currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Primoris Services Corporation (PRIM - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #3.
Quanta Services, Inc. (PWR - Free Report) has an Earnings ESP of +10.32% and a Zacks Rank #2.