Pasadena, California-based Jacobs Engineering Group Inc. (JEC - Free Report) provides engineering and other services related to design and construction of major facilities, plants, infrastructure and other projects. Factors like increased transportation spending by government authorities of Australia and the UK, higher demand for power generation & aviation services, and growth in spending of biopharmaceutical majors, have been driving the company’s key financials. Also, the company’s strategic operational efficacy enhancement programs add to its strength.
However, several persistent headwinds within the construction industry might hurt the company’s results. For instance, weak energy and mining market conditions have been hindering growth for industrial and construction companies like Jacobs. This is because low prices of oil and core metals have forced the energy and mining companies to postpone, reduce or even cut investments.
Despite the negatives, the company has managed to beat estimates in each of the trailing four quarters, the average positive surprise being 8.5%.
Currently, JEC has a Zacks Rank #4 (Sell) but that could change following its fourth-quarter fiscal 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
JACOBS ENGIN GR Price, Consensus and EPS Surprise
We have highlighted some of the key details from the just-released announcement below:
Earnings: JEC earnings met estimates. Adjusted earnings per share came in at 77 cents, in line with the Zacks Consensus Estimate.
Revenue: Revenues of $2,640.6 million came below the Zacks Consensus Estimate of $2,779 million.
Key Stats: At the end of fiscal 2016, the company had a total backlog of $18.8 billion, of which about $12 billion is attributable to technical professional services. The robust backlog level implies the company’s focused approach to improve sales.
Stock Price: Investors seemed disappointed with JEC’s results, and shares were down about 1.5% in pre-market trading at the time of writing this report.
Check back later for our full write up on this JEC earnings report later!
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