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Jacobs Gears Up to Report Q1 Earnings: Things to Keep in Mind

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Jacobs Solutions, Inc. (J - Free Report) is slated to report first-quarter fiscal 2025 results on Feb. 4, before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 0.7%, and revenues missed the same by 1.1%. On a year-over-year basis, its adjusted earnings grew 28%, and revenues inched up 4.4%.

The leading provider of professional, technical and construction services’ earnings have topped the consensus mark in all the last four quarters, with the average being 9.9%.

Jacobs Solutions Inc. Price and EPS Surprise

Jacobs Solutions Inc. Price and EPS Surprise

Jacobs Solutions Inc. price-eps-surprise | Jacobs Solutions Inc. Quote

How Are Estimates Placed for Jacobs Stock?

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at $1.29 in the past 60 days. The consensus mark for revenues is pegged at $2.93 billion.

Factors to Note for Jacobs' Q1

Jacobs’ revenues in the first quarter of fiscal 2025 are expected to have reflected increasing investments in water infrastructure projects, pharmaceutical and semiconductor sectors, critical infrastructure, energy transition and transportation projects in Europe and Australia.

Jacobs has undergone a strategic transformation, shifting toward a more streamlined, high-value, and high-margin portfolio. A critical milestone in this shift was the separation of its Critical Mission Solutions and Cyber & Intelligence businesses, culminating in Amentum’s listing on the NYSE. This move has allowed Jacobs to sharpen its focus on three core end markets: Water & Environmental, Life Sciences & Advanced Manufacturing, and Critical Infrastructure. This restructuring allows Jacobs to concentrate on higher-margin businesses, reinforcing its ability to deliver long-term shareholder value, which is likely to have contributed to the company’s quarterly performance.

Additionally, the fiscal first quarter is anticipated to have demonstrated the positive effects of a backlog with higher margins, a dedication to efficiency through digital and technological advancements, and solid project execution, all playing roles in driving overall growth.

However, some short-term headwinds, such as government funding delays, restructuring costs and macroeconomic uncertainties, may impact the company’s quarterly performance.

For the fiscal first quarter, Jacobs expects revenues, adjusted EBITDA margin, and earnings to be sequentially lower than the fourth quarter of fiscal 2024 due to normal seasonality. However, financial performance is projected to improve as the year progresses, with sequential growth expected in each quarter. The company's strategic move away from being solely an engineering and construction firm toward a globally-focused technology solutions provider is likely to be reflected in the upcoming financial report.

What the Zacks Model Says for Jacobs

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, this is not the case here.

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 currently carries a Zacks Rank #3.

Stocks With Favorable Combination

Here are some other companies in the Zacks Business Services sector, which, according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.

AppLovin Corporation (APP - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

APP reported better-than-expected earnings in each of the last four quarters, the average surprise being 26.2%. The company’s earnings for the fourth quarter of 2024 are expected to increase 161.2%.

Coherent Corp. (COHR - Free Report) currently has an Earnings ESP of +7.48% and a Zacks Rank of 2.

COHR’s earnings for the second quarter of fiscal 2025 are expected to increase 94.4%. The company reported better-than-expected earnings in each of the last four quarters, the average surprise being 25.5%.

S&P Global Inc. (SPGI - Free Report) currently has an Earnings ESP of +0.83% and a Zacks Rank of 2.

SPGI’s earnings for the fourth quarter of 2024 are expected to increase 9%. The company reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 6.3%.

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