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Jacobs (J) Misses on Q1 Earnings & Revenues, Reaffirms View
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Jacobs Engineering Group Inc. (J - Free Report) reported first-quarter fiscal 2021 (ended Dec 31, 2021) results, wherein earnings and revenues missed the respective Zacks Consensus Estimate.
In connection with the earnings release, the company’s president and CFO Kevin Berryman said, “We delivered strong performance during the quarter with double-digit backlog growth across all businesses as multiple global growth trends gain momentum. Our advanced facilities revenue grew double-digits driven by supply chain investments across semiconductors and life sciences manufacturing, and we expect infrastructure modernization in the U.S. to further materialize later in 2022.”
Following the results, its shares fell marginally by 0.09% in the pre-market trading session.
Meanwhile, on Feb 7, Jacobs announced the acquisition of mobility analytics leader StreetLight. This buyout reflects another data-rich software platform addition to its portfolio, which is expected to provide highly profitable long-term recurring revenue growth opportunities.
Jacobs Engineering Group Inc. Price, Consensus and EPS Surprise
For the reported quarter, adjusted earnings of $1.56 per share lagged the consensus estimate of $1.60 by 2.5%. Nonetheless, the figure was up 10.6% from the year-ago period.
Jacobs’ revenues totaled $3.38 billion, which missed the consensus mark of $3.64 billion by 7.2% but remained flat year over year. Net revenues declined 3% year over year owing to the impact of the timing of large Critical Mission Solutions or CMS wins and People & Places Solutions (P&PS) Americas customers’ evaluation of investments from the recently passed U.S. infrastructure bill.
Backlog at fiscal first quarter-end amounted to $28 billion, up 12% from a year ago.
Segment Details
Revenues from the CMS segment of $1.16 billion decreased 10.3% year over year. Nonetheless, segment operating profit of $111.5 million was up 1.3% year over year for the quarter.
Backlog at quarter-end was $10.8 billion, up 11.5% year over year.
Revenues from the P&PS segment totaled $1.93 billion, which dropped 7.6% year over year. Yet, segment operating profit declined 2.3% from the prior-year quarter to $191.7 million.
Backlog at quarter-end was $16.93 billion, up 10% year over year.
Meanwhile, PA Consulting contributed $290 million to revenues for the fiscal first quarter. Segment operating profit was $63.1 million.
Quarter-end backlog amounted to $276 million.
Margins Profile
For the quarter under review, adjusted gross profit increased to $796.5 million from the year-ago level of $632.2 million.
Adjusted operating margin expanded to 10.6% from 9.5% in the prior-year quarter. Adjusted EBITDA was $310 million, up 11% year over year.
Balance Sheet & Cash Flow
At fiscal first quarter-end (Dec 31, 2021), Jacobs had cash and cash equivalents of $1,245 million, up from $1,014.2 million at fiscal 2021-end (Oct 1, 2021). Long-term debt increased to $3.07 billion at fiscal first quarter-end from $2.84 billion as of Oct 1, 2021.
The company provided $321.6 million cash for operating activities in the quarter compared with $112.6 million in the year-ago period. It generated free cash flow of $302.3 million in the fiscal first quarter versus $95.9 million a year ago.
Fiscal 2022 Guidance
Jacobs expects adjusted EBITDA between $1,370 million and $1,450 million. Also, it anticipates adjusted earnings within $6.85-$7.45 per share.
The company expects adjusted EPS of $10.00 for fiscal 2025. The guidance includes expected benefits to P&PS from the recently passed Infrastructure Investment and Jobs Act. Jacobs has a robust CMS sales pipeline and sees sustained growth in PA Consulting.
Other Top-Ranked Stocks in the Construction Sector
Boise, ID-based Boise Cascade Company (BCC - Free Report) — which makes wood products and distributes building materials in the United States as well as Canada — is aided by factors like favorable commodity wood products, pricing, and robust construction activity.
Boise Cascade currently flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 45.5%, on average. Shares of BCC have increased 51.3% in the past year.
Louisiana-Pacific Corporation (LPX - Free Report) — a leading manufacturer of wood products — has been mainly focusing on three areas - increasing the efficiency of mills by improving productivity, run time and quality through overall equipment effectiveness or OEE initiatives; applying best practices to its supply chain; and optimizing infrastructure costs.
Louisiana-Pacific presently flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 10.5%, on average. Shares of LPX have increased 61% in the past year.
Weyerhaeuser Company (WY - Free Report) — one of the leading U.S. forest product companies — has been benefiting from solid new residential construction activity, thereby leading to improved demand. Also, its focus on operational excellence has been advantageous over time.
Weyerhaeuser flaunts a Zacks Rank #1 at present. The company’s earnings estimates for the current fiscal year have increased 8.8% in the past seven days. Shares of WY have jumped 16.5% in the past year.
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Jacobs (J) Misses on Q1 Earnings & Revenues, Reaffirms View
Jacobs Engineering Group Inc. (J - Free Report) reported first-quarter fiscal 2021 (ended Dec 31, 2021) results, wherein earnings and revenues missed the respective Zacks Consensus Estimate.
In connection with the earnings release, the company’s president and CFO Kevin Berryman said, “We delivered strong performance during the quarter with double-digit backlog growth across all businesses as multiple global growth trends gain momentum. Our advanced facilities revenue grew double-digits driven by supply chain investments across semiconductors and life sciences manufacturing, and we expect infrastructure modernization in the U.S. to further materialize later in 2022.”
Following the results, its shares fell marginally by 0.09% in the pre-market trading session.
Meanwhile, on Feb 7, Jacobs announced the acquisition of mobility analytics leader StreetLight. This buyout reflects another data-rich software platform addition to its portfolio, which is expected to provide highly profitable long-term recurring revenue growth opportunities.
Jacobs Engineering Group Inc. Price, Consensus and EPS Surprise
Jacobs Engineering Group Inc. price-consensus-eps-surprise-chart | Jacobs Engineering Group Inc. Quote
Earnings & Revenue Discussion
For the reported quarter, adjusted earnings of $1.56 per share lagged the consensus estimate of $1.60 by 2.5%. Nonetheless, the figure was up 10.6% from the year-ago period.
Jacobs’ revenues totaled $3.38 billion, which missed the consensus mark of $3.64 billion by 7.2% but remained flat year over year. Net revenues declined 3% year over year owing to the impact of the timing of large Critical Mission Solutions or CMS wins and People & Places Solutions (P&PS) Americas customers’ evaluation of investments from the recently passed U.S. infrastructure bill.
Backlog at fiscal first quarter-end amounted to $28 billion, up 12% from a year ago.
Segment Details
Revenues from the CMS segment of $1.16 billion decreased 10.3% year over year. Nonetheless, segment operating profit of $111.5 million was up 1.3% year over year for the quarter.
Backlog at quarter-end was $10.8 billion, up 11.5% year over year.
Revenues from the P&PS segment totaled $1.93 billion, which dropped 7.6% year over year. Yet, segment operating profit declined 2.3% from the prior-year quarter to $191.7 million.
Backlog at quarter-end was $16.93 billion, up 10% year over year.
Meanwhile, PA Consulting contributed $290 million to revenues for the fiscal first quarter. Segment operating profit was $63.1 million.
Quarter-end backlog amounted to $276 million.
Margins Profile
For the quarter under review, adjusted gross profit increased to $796.5 million from the year-ago level of $632.2 million.
Adjusted operating margin expanded to 10.6% from 9.5% in the prior-year quarter. Adjusted EBITDA was $310 million, up 11% year over year.
Balance Sheet & Cash Flow
At fiscal first quarter-end (Dec 31, 2021), Jacobs had cash and cash equivalents of $1,245 million, up from $1,014.2 million at fiscal 2021-end (Oct 1, 2021). Long-term debt increased to $3.07 billion at fiscal first quarter-end from $2.84 billion as of Oct 1, 2021.
The company provided $321.6 million cash for operating activities in the quarter compared with $112.6 million in the year-ago period. It generated free cash flow of $302.3 million in the fiscal first quarter versus $95.9 million a year ago.
Fiscal 2022 Guidance
Jacobs expects adjusted EBITDA between $1,370 million and $1,450 million. Also, it anticipates adjusted earnings within $6.85-$7.45 per share.
The company expects adjusted EPS of $10.00 for fiscal 2025. The guidance includes expected benefits to P&PS from the recently passed Infrastructure Investment and Jobs Act. Jacobs has a robust CMS sales pipeline and sees sustained growth in PA Consulting.
Zacks Rank
Jacobs currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Top-Ranked Stocks in the Construction Sector
Boise, ID-based Boise Cascade Company (BCC - Free Report) — which makes wood products and distributes building materials in the United States as well as Canada — is aided by factors like favorable commodity wood products, pricing, and robust construction activity.
Boise Cascade currently flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 45.5%, on average. Shares of BCC have increased 51.3% in the past year.
Louisiana-Pacific Corporation (LPX - Free Report) — a leading manufacturer of wood products — has been mainly focusing on three areas - increasing the efficiency of mills by improving productivity, run time and quality through overall equipment effectiveness or OEE initiatives; applying best practices to its supply chain; and optimizing infrastructure costs.
Louisiana-Pacific presently flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 10.5%, on average. Shares of LPX have increased 61% in the past year.
Weyerhaeuser Company (WY - Free Report) — one of the leading U.S. forest product companies — has been benefiting from solid new residential construction activity, thereby leading to improved demand. Also, its focus on operational excellence has been advantageous over time.
Weyerhaeuser flaunts a Zacks Rank #1 at present. The company’s earnings estimates for the current fiscal year have increased 8.8% in the past seven days. Shares of WY have jumped 16.5% in the past year.