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Jacobs to Report Q2 Earnings: What to Expect From the Stock?

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Jacobs Solutions, Inc. (J - Free Report) is slated to report second-quarter fiscal 2025 results on May 6, before market open.

In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 3.1% and 0.1%, respectively. On a year-over-year basis, its adjusted earnings declined 8.3% but revenues moved up 4.4%.

The leading provider of professional, technical and construction services’ earnings have topped the consensus mark in the last four quarters, the average being 2%.

How are Estimates Placed for Jacobs Stock?

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share decreased to $1.41 from $1.43 in the past 30 days. The consensus mark for revenues is pegged at $3.02 billion. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Jacobs Solutions Inc. Price and EPS Surprise

 

Jacobs Solutions Inc. Price and EPS Surprise

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

Factors to Note Ahead of J's Q2 Results

Jacobs’ revenues in the second quarter of fiscal 2025 are expected to have benefited from increasing contract wins and strong project execution. The company is likely to have benefited from rising demand across sectors like energy, water and transport. Expansion in international markets such as Europe, the Middle East and Australia might have supported this growth, with continued focus on infrastructure and renewable energy projects.

Segment-wise, Jacobs’ Infrastructure & Advanced Facilities segment (which accounted for 89.7% of total revenues in fiscal 2024) is expected to have gained from solid demand in water infrastructure, environmental services, life sciences, advanced manufacturing and Critical Infrastructure.

The PA Consulting segment contributed 10.3% to Jacobs’ fiscal 2024 revenues, supporting government and defense work across sectors like energy, health, finance and transport. The segment is expected to have benefited from growth in energy transition and demand for digital services, along with recent project wins.

However, some short-term headwinds, such as government funding delays, restructuring costs and macroeconomic uncertainties, are likely to have impacted the company’s quarterly performance. Ongoing inflationary pressures on labor, materials and other related expenses, along with continued investment in IT, are likely to have impacted the company's bottom line in the to-be-reported quarter.

Nonetheless, the company's efforts to streamline operations and improve cost structure are likely to have aided the company's margins in the second quarter.

What the Zacks Model Says for Jacobs

Our proven model does not conclusively predict an earnings beat for J 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 of Jacobs: The company has an Earnings ESP of -4.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

J’s Zacks Rank: Jacobs currently carries a Zacks Rank #4 (Sell).

Stocks With Favorable Combination

Here are some 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.

Stantec Inc. (STN - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stantec reported better-than-expected earnings in each of the last four quarters, the average surprise being 6.9%. STN is expected to register a 17.9% increase in earnings for the to-be-reported quarter.

Visa Inc. (V - Free Report) currently has an Earnings ESP of +0.40% and a Zacks Rank of 3.

Visa is expected to register a 17.4% increase in earnings for the to-be-reported quarter. V reported better-than-expected earnings in each of the last four quarters, the average surprise being 3%.

Duolingo, Inc. (DUOL - Free Report) presently has an Earnings ESP of +10.71% and a Zacks Rank of 2.

Duolingo is expected to register a 5.9% decrease in earnings for the to-be-reported quarter. DUOL reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 22.8%.


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