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In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 3.7% and 5%, respectively. On a year-over-year basis, its earnings rose 7% and revenues grew 7.7%.
The leading provider of professional, technical and construction services’ earnings topped the consensus mark in each of the last four quarters, with the average being 1.9%.
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share grew by a cent to $1.81 in the past seven days. The estimated figure indicates a 5.2% increase from $1.72 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $4 billion, suggesting a 4.2% growth from the year-ago quarter’s reported figure of $3.83 billion.
Factors to Note
Jacobs’ second-quarter fiscal 2023 performance is likely to have been aided by investments from the U.S. Infrastructure Act and other economic stimuli. Its strategic focus on transforming itself from an engineering and construction firm to a global technology-forward solutions company is expected to get reflected in the to-be-reported quarter’s numbers. Also, a higher-margin backlog, focus on generating efficiencies through digital and technological solutions and solid project execution are expected to have boosted growth.
J’s continuous shift to digitalization and leadership in strategic end markets like space exploration, life sciences, cyber and water solutions bode well. Again, the U.S. Department of Defense’s increased focus on strategic data utilization is likely to have driven Jacobs’ growth.
A favorable revenue mix in both People & Places Solutions (P&PS) and Critical Mission Solutions (CMS) segments and benefits from PA Consulting (which has a solid accretive gross margin profile of nearly 50%) are likely to get reflected in margins.
Segment-wise, higher spending from the transportation sector and accelerated investments toward drinking water, wastewater, flood protection and climate resilience might have aided the company’s fiscal second-quarter performance in the P&PS segment (58% of total revenues in fiscal 2022).
Rapid implementation of digital technologies has been optimizing clients’ operational spending and mitigating its revenue challenges. Further, environmental and green economy projects remains strong.
The Zacks Consensus Estimate for P&PS segment’s net revenues is pegged at $2,013 million, indicating a fall from $2,170 million a year ago. The Zacks Consensus Estimate for P&PS’s operating profit is pegged at $241 million, indicating a rise from the year-ago quarter’s figure of $191 million.
The CMS segment (36% of total revenues) is expected to have benefited from the consistent performance of the Cyber and Mission-IT business. The company’s CMS strategy has been focused on creating resilient revenue growth and margin expansion by offering technology-enabled solutions aligned to critical national priorities that drive innovative outcomes. Jacobs has been pursuing global energy transition, space-based ISR, intelligence analytics and 5G networks.
The Zacks Consensus Estimate for the CMS segment’s revenues is pegged at $1,248 million, indicating a decline from $1,366 million a year ago. The consensus mark for the CMS segment’s operating profit is $100 million, down from $113 million year over year.
The Zacks Consensus Estimate for the total backlog is $28,855 million compared with $27,790 million reported a year ago. The P&PS segment’s backlog is pegged at $18,003 million, indicating a rise from the year-ago quarter’s figure of $16,965 million. The same for CMS is pegged at $7,784 million, indicating a decline from the year-ago quarter’s figure of $10,556 million.
It expects non-allocated corporate costs to get reflected in the quarterly performance due to increased medical costs, IT investments and other expenses. Jacobs also expects the potential non-cash impairment charge to reflect on quarterly earnings.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Jacobs this time around. A 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. Unfortunately, that is not the case here.
Earnings ESP: The company has an Earnings ESP of -0.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Quanta Services Inc. (PWR - Free Report) reported better-than-expected results for first-quarter 2023, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate.
PWR continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Notably, project activities associated with renewable generation has been going strong and is expected to continue throughout the year.
KBR, Inc. (KBR - Free Report) reported strong results in first-quarter 2023, where earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
KBR’s top and bottom lines gained on strong underlying growth and margin expansion as well as excellent bookings in the reported quarter.
Fluor Corporation (FLR - Free Report) reported mixed results for first-quarter 2023. Earnings missed the Zacks Consensus Estimate but increased from the previous year. Revenues surpassed the consensus mark and grew from the year-ago level.
FLR’s underlying performance continues to be impacted by a few remaining legacy projects.
Image: Bigstock
Jacobs (J) is Set to Report Q2 Earnings: What's in Store?
Jacobs Engineering Group Inc. (J - Free Report) is slated to report second-quarter fiscal 2023 results on May 9, before the market opens.
In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 3.7% and 5%, respectively. On a year-over-year basis, its earnings rose 7% and revenues grew 7.7%.
The leading provider of professional, technical and construction services’ earnings topped the consensus mark in each of the last four quarters, with the average being 1.9%.
Jacobs Solutions Inc. Price and EPS Surprise
Jacobs Solutions Inc. price-eps-surprise | Jacobs Solutions Inc. Quote
Trend in Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share grew by a cent to $1.81 in the past seven days. The estimated figure indicates a 5.2% increase from $1.72 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $4 billion, suggesting a 4.2% growth from the year-ago quarter’s reported figure of $3.83 billion.
Factors to Note
Jacobs’ second-quarter fiscal 2023 performance is likely to have been aided by investments from the U.S. Infrastructure Act and other economic stimuli. Its strategic focus on transforming itself from an engineering and construction firm to a global technology-forward solutions company is expected to get reflected in the to-be-reported quarter’s numbers. Also, a higher-margin backlog, focus on generating efficiencies through digital and technological solutions and solid project execution are expected to have boosted growth.
J’s continuous shift to digitalization and leadership in strategic end markets like space exploration, life sciences, cyber and water solutions bode well. Again, the U.S. Department of Defense’s increased focus on strategic data utilization is likely to have driven Jacobs’ growth.
A favorable revenue mix in both People & Places Solutions (P&PS) and Critical Mission Solutions (CMS) segments and benefits from PA Consulting (which has a solid accretive gross margin profile of nearly 50%) are likely to get reflected in margins.
Segment-wise, higher spending from the transportation sector and accelerated investments toward drinking water, wastewater, flood protection and climate resilience might have aided the company’s fiscal second-quarter performance in the P&PS segment (58% of total revenues in fiscal 2022).
Rapid implementation of digital technologies has been optimizing clients’ operational spending and mitigating its revenue challenges. Further, environmental and green economy projects remains strong.
The Zacks Consensus Estimate for P&PS segment’s net revenues is pegged at $2,013 million, indicating a fall from $2,170 million a year ago. The Zacks Consensus Estimate for P&PS’s operating profit is pegged at $241 million, indicating a rise from the year-ago quarter’s figure of $191 million.
The CMS segment (36% of total revenues) is expected to have benefited from the consistent performance of the Cyber and Mission-IT business. The company’s CMS strategy has been focused on creating resilient revenue growth and margin expansion by offering technology-enabled solutions aligned to critical national priorities that drive innovative outcomes. Jacobs has been pursuing global energy transition, space-based ISR, intelligence analytics and 5G networks.
The Zacks Consensus Estimate for the CMS segment’s revenues is pegged at $1,248 million, indicating a decline from $1,366 million a year ago. The consensus mark for the CMS segment’s operating profit is $100 million, down from $113 million year over year.
The Zacks Consensus Estimate for the total backlog is $28,855 million compared with $27,790 million reported a year ago. The P&PS segment’s backlog is pegged at $18,003 million, indicating a rise from the year-ago quarter’s figure of $16,965 million. The same for CMS is pegged at $7,784 million, indicating a decline from the year-ago quarter’s figure of $10,556 million.
It expects non-allocated corporate costs to get reflected in the quarterly performance due to increased medical costs, IT investments and other expenses. Jacobs also expects the potential non-cash impairment charge to reflect on quarterly earnings.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Jacobs this time around. A 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. Unfortunately, that is not the case here.
Earnings ESP: The company has an Earnings ESP of -0.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Quanta Services Inc. (PWR - Free Report) reported better-than-expected results for first-quarter 2023, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate.
PWR continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Notably, project activities associated with renewable generation has been going strong and is expected to continue throughout the year.
KBR, Inc. (KBR - Free Report) reported strong results in first-quarter 2023, where earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
KBR’s top and bottom lines gained on strong underlying growth and margin expansion as well as excellent bookings in the reported quarter.
Fluor Corporation (FLR - Free Report) reported mixed results for first-quarter 2023. Earnings missed the Zacks Consensus Estimate but increased from the previous year. Revenues surpassed the consensus mark and grew from the year-ago level.
FLR’s underlying performance continues to be impacted by a few remaining legacy projects.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.