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Jacobs (J) Q4 Earnings & Revenues Top Estimates, Shares Rise
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Jacobs Engineering Group Inc. (J - Free Report) reported fourth-quarter fiscal 2022 (ended Sep 30, 2022) results, with earnings and revenues surpassing their respective Zacks Consensus Estimate and rising year over year.
Shares of this construction and technical services company gained 5.9% following the earnings release on Nov 21, 2022.
In connection with the earnings release, the company’s chairman and CEO, Steve Demetriou, stated, "We finished fiscal 2022 with strong top and bottom-line performance positioning the company for continued growth in fiscal 2023.” He further added, “Our focus on strong values and a brand promise to continue 'Challenging today. Reinventing tomorrow' is the intangible competitive differentiator that truly makes Jacobs a company like no other."
Looking into fiscal 2023 and beyond, Jacobs' president and CFO Kevin Berryman added, "We are aligned to multiple large, growing and well-funded priorities including global infrastructure modernization, climate response, investments in critical supply chains and national security."
Earnings & Revenue Discussion
For the reported quarter, adjusted earnings of $1.80 per share topped the consensus estimate of $1.78. Also, the reported figure was up 14% from the year-ago period. The bottom line was also up 17% at constant currency.
Jacobs’ revenues totaled $3.88 billion, topped the consensus mark of $3.82 billion and grew 8.2% year over year. Net revenues of $3.23 billion improved 6.3% year over year.
Backlog at the fiscal 2022-end amounted to $27.9 billion, up 5% from a year ago (up 8% at constant currency).
Jacobs Solutions Inc. Price, Consensus and EPS Surprise
Revenues from the CMS segment of $1.39 billion increased 9.8% year over year. Yet, the segment operating profit of $95.3 million was down from $115 million reported a year ago. The backlog at the fiscal 2022-end was $10.56 billion, slightly down from $10.59 billion a year ago.
Revenues from the P&PS segment totaled $2.24 billion, which inched up 9.3% year over year. Segment operating profit grew 30.5% from the prior-year quarter to $230.7 million. The backlog at the quarter-end was $17 billion, up from $15.74 billion a year ago.
PA Consulting generated $254.4 million in revenues in the fiscal fourth quarter, down 6.9% from the year-ago quarter’s figure of $273.3 million. Segment operating profit was $49.4 million, down from $66.4 million a year ago. Quarter-end backlog amounted to $269 million, down from $304 million a year ago.
Margins Profile
For the quarter under review, adjusted gross profit increased to $837.3 million from the year-ago level of $827.5 million.
Adjusted operating margin expanded to 10.7% from 9.9% in the prior-year quarter.
Adjusted EBITDA was $350 million, reflecting an increase of 13% year over year and 17% at constant currency.
Fiscal 2022 Highlights
Total revenues of $14.92 billion grew 5.9% year over year and 10% at constant currency.
Adjusted EPS was $6.93, an increase of 10% from fiscal 2022 and 13% at constant currency.
Adjusted EBITDA grew 10% to $1.4 billion and 12% at constant currency.
Balance Sheet & Cash Flow
At the fiscal 2022-end, Jacobs had cash and cash equivalents of $1,140.5 million, up from $1,014.2 million at the fiscal 2021-end (Oct 1, 2021). Long-term debt increased to $3.36 billion at the fiscal 2022-end from $2.84 billion as of Oct 1, 2021.
Net cash provided by operating activities totaled $277.5 million in the quarter compared with $202.7 million in the year-ago quarter. For fiscal 2022, the company provided $474.7 million cash in operating activities versus $726.3 million a year ago.
Fiscal 2023 Guidance
Based on fiscal 2022 average FX rates, Jacobs expects adjusted EBITDA between $1,465 million and $1,545 million and adjusted earnings within $7.60-$7.90 per share (up 10% and 12%, respectively, at the midpoints).
Meanwhile, based on FX rates in early November, Jacobs expects adjusted EBITDA between $1,400 million and $1,480 million and adjusted earnings within $7.20-$7.50 per share (up 6% both at the midpoints).
The Zacks Consensus Estimate for the company’s fiscal 2023 earnings is currently pegged at $7.64 per share.
AECOM (ACM - Free Report) reported impressive fourth-quarter fiscal 2022 results. Its earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis. The company’s strong performance was backed by accelerating organic growth, strong profitability and disciplined capital allocation.
For fiscal 2023, ACM anticipates generating 8% organic NSR growth (4% for actual NSR), underpinned by robust momentum in the Professional Services business. The company expects adjusted EPS in the range of $3.55-$3.75. This indicates a 10% improvement from fiscal 2022 levels at a constant-currency basis, considering the mid-point of the guidance.
KBR, Inc. (KBR - Free Report) reported mixed third-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Nonetheless, the increasing global importance of national security, energy security, energy transition and climate change have been acting as major tailwinds for KBR.
Fluor Corporation (FLR - Free Report) reported lower-than-expected third-quarter 2022 results. Notably, earnings and revenues missed the Zacks Consensus Estimate for the third consecutive quarter.
Challenges associated with FLR’s three legacy infrastructure projects weighed heavily on the results.
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Jacobs (J) Q4 Earnings & Revenues Top Estimates, Shares Rise
Jacobs Engineering Group Inc. (J - Free Report) reported fourth-quarter fiscal 2022 (ended Sep 30, 2022) results, with earnings and revenues surpassing their respective Zacks Consensus Estimate and rising year over year.
Shares of this construction and technical services company gained 5.9% following the earnings release on Nov 21, 2022.
In connection with the earnings release, the company’s chairman and CEO, Steve Demetriou, stated, "We finished fiscal 2022 with strong top and bottom-line performance positioning the company for continued growth in fiscal 2023.” He further added, “Our focus on strong values and a brand promise to continue 'Challenging today. Reinventing tomorrow' is the intangible competitive differentiator that truly makes Jacobs a company like no other."
Looking into fiscal 2023 and beyond, Jacobs' president and CFO Kevin Berryman added, "We are aligned to multiple large, growing and well-funded priorities including global infrastructure modernization, climate response, investments in critical supply chains and national security."
Earnings & Revenue Discussion
For the reported quarter, adjusted earnings of $1.80 per share topped the consensus estimate of $1.78. Also, the reported figure was up 14% from the year-ago period. The bottom line was also up 17% at constant currency.
Jacobs’ revenues totaled $3.88 billion, topped the consensus mark of $3.82 billion and grew 8.2% year over year. Net revenues of $3.23 billion improved 6.3% year over year.
Backlog at the fiscal 2022-end amounted to $27.9 billion, up 5% from a year ago (up 8% at constant currency).
Jacobs Solutions Inc. Price, Consensus and EPS Surprise
Jacobs Solutions Inc. price-consensus-eps-surprise-chart | Jacobs Solutions Inc. Quote
Segment Details
Revenues from the CMS segment of $1.39 billion increased 9.8% year over year. Yet, the segment operating profit of $95.3 million was down from $115 million reported a year ago. The backlog at the fiscal 2022-end was $10.56 billion, slightly down from $10.59 billion a year ago.
Revenues from the P&PS segment totaled $2.24 billion, which inched up 9.3% year over year. Segment operating profit grew 30.5% from the prior-year quarter to $230.7 million. The backlog at the quarter-end was $17 billion, up from $15.74 billion a year ago.
PA Consulting generated $254.4 million in revenues in the fiscal fourth quarter, down 6.9% from the year-ago quarter’s figure of $273.3 million. Segment operating profit was $49.4 million, down from $66.4 million a year ago. Quarter-end backlog amounted to $269 million, down from $304 million a year ago.
Margins Profile
For the quarter under review, adjusted gross profit increased to $837.3 million from the year-ago level of $827.5 million.
Adjusted operating margin expanded to 10.7% from 9.9% in the prior-year quarter.
Adjusted EBITDA was $350 million, reflecting an increase of 13% year over year and 17% at constant currency.
Fiscal 2022 Highlights
Total revenues of $14.92 billion grew 5.9% year over year and 10% at constant currency.
Adjusted EPS was $6.93, an increase of 10% from fiscal 2022 and 13% at constant currency.
Adjusted EBITDA grew 10% to $1.4 billion and 12% at constant currency.
Balance Sheet & Cash Flow
At the fiscal 2022-end, Jacobs had cash and cash equivalents of $1,140.5 million, up from $1,014.2 million at the fiscal 2021-end (Oct 1, 2021). Long-term debt increased to $3.36 billion at the fiscal 2022-end from $2.84 billion as of Oct 1, 2021.
Net cash provided by operating activities totaled $277.5 million in the quarter compared with $202.7 million in the year-ago quarter. For fiscal 2022, the company provided $474.7 million cash in operating activities versus $726.3 million a year ago.
Fiscal 2023 Guidance
Based on fiscal 2022 average FX rates, Jacobs expects adjusted EBITDA between $1,465 million and $1,545 million and adjusted earnings within $7.60-$7.90 per share (up 10% and 12%, respectively, at the midpoints).
Meanwhile, based on FX rates in early November, Jacobs expects adjusted EBITDA between $1,400 million and $1,480 million and adjusted earnings within $7.20-$7.50 per share (up 6% both at the midpoints).
The Zacks Consensus Estimate for the company’s fiscal 2023 earnings is currently pegged at $7.64 per share.
Zacks Rank
Jacobs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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AECOM (ACM - Free Report) reported impressive fourth-quarter fiscal 2022 results. Its earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis. The company’s strong performance was backed by accelerating organic growth, strong profitability and disciplined capital allocation.
For fiscal 2023, ACM anticipates generating 8% organic NSR growth (4% for actual NSR), underpinned by robust momentum in the Professional Services business. The company expects adjusted EPS in the range of $3.55-$3.75. This indicates a 10% improvement from fiscal 2022 levels at a constant-currency basis, considering the mid-point of the guidance.
KBR, Inc. (KBR - Free Report) reported mixed third-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Nonetheless, the increasing global importance of national security, energy security, energy transition and climate change have been acting as major tailwinds for KBR.
Fluor Corporation (FLR - Free Report) reported lower-than-expected third-quarter 2022 results. Notably, earnings and revenues missed the Zacks Consensus Estimate for the third consecutive quarter.
Challenges associated with FLR’s three legacy infrastructure projects weighed heavily on the results.