We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Solid Project Execution to Support Jacobs' (J) Q2 Earnings
Read MoreHide Full Article
Jacobs Engineering Group Inc. (J - Free Report) is slated to report second-quarter fiscal 2020 results on May 6, after the closing bell.
In the last reported quarter, the company’s earnings met the Zacks Consensus Estimate, while revenues beat the same by 1.3%. On a year-over-year basis, earnings and revenues of this leading provider of professional, technical and construction services grew 20% and 9%, respectively.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased 0.8% to $1.26 over the past 30 days. Nonetheless, the estimated figure indicates a 5.9% increase from $1.19 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $3.12 billion, suggesting a 0.9% increase from the year-ago reported figure of $3.09 billion.
Jacobs Engineering Group Inc. Price and EPS Surprise
Jacobs’ strategic focus on transforming itself from an engineering and construction to a global technology-forward solutions company is expected to reflect on fiscal second-quarter results. Also, higher-margin backlog, focus on generating efficiencies through digital and technological solutions, along with solid project execution are expected to have boosted its growth.
Jacobs’s People & Places Solutions or P&PS segment (comprising 64.8% of total revenues) is expected to have benefited from its strength in capitalizing on more economically-resistant end markets such as infrastructure, water management, and environmental remediation. The company’s technological edge in infrastructure, water management and environmental remediation are likely to have aided Jacobs’ growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the P&PS segment’s revenues is pegged at $2,113 million, indicating a 3% increase from the first quarter. The same for backlog indicates growth of 1.4% sequentially.
The Critical Mission Solutions or CMS segment (comprising 35.2% of total revenues) is expected to have benefited from the U.S. federal government's increased focus on defense, energy, intelligence community and NASA. Its strength in critical federal service agencies such DoD and NASA, and ability to gain share through advanced technological applications and efficiencies are likely to reflect on the upcoming quarterly results.
The consensus mark for CMS revenues is $1,286 million, suggesting a rise of 8.8% from the last reported quarter. The same for backlog is pegged at $8,561 million, implying a 1% improvement sequentially.
Apart from solid segmental performance, Jacobs is likely to have benefited from prudent cost-management efforts in the fiscal second quarter. Its efforts toward increasing the share of higher-margin backlog, and dependence on recurring revenues and rebid wins are likely to have boosted profitability to some extent.
Yet, higher transaction, separation and restructuring-related costs, as well as other incremental expenses are expected to have put pressure on margins to some extent.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Jacobs, which share space with KBR, Inc. (KBR - Free Report) in the same industry, this time around. The 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. This is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of +0.79%. 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 #4 (Sell).
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Vulcan Materials Company (VMC - Free Report) has an Earnings ESP of +0.49% and carries a Zacks Rank #3.
Trex Company, Inc. (TREX - Free Report) has an Earnings ESP of +4.78% and carries a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Solid Project Execution to Support Jacobs' (J) Q2 Earnings
Jacobs Engineering Group Inc. (J - Free Report) is slated to report second-quarter fiscal 2020 results on May 6, after the closing bell.
In the last reported quarter, the company’s earnings met the Zacks Consensus Estimate, while revenues beat the same by 1.3%. On a year-over-year basis, earnings and revenues of this leading provider of professional, technical and construction services grew 20% and 9%, respectively.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has decreased 0.8% to $1.26 over the past 30 days. Nonetheless, the estimated figure indicates a 5.9% increase from $1.19 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $3.12 billion, suggesting a 0.9% increase from the year-ago reported figure of $3.09 billion.
Jacobs Engineering Group Inc. Price and EPS Surprise
Jacobs Engineering Group Inc. price-eps-surprise | Jacobs Engineering Group Inc. Quote
Factors to Note
Jacobs’ strategic focus on transforming itself from an engineering and construction to a global technology-forward solutions company is expected to reflect on fiscal second-quarter results. Also, higher-margin backlog, focus on generating efficiencies through digital and technological solutions, along with solid project execution are expected to have boosted its growth.
Jacobs’s People & Places Solutions or P&PS segment (comprising 64.8% of total revenues) is expected to have benefited from its strength in capitalizing on more economically-resistant end markets such as infrastructure, water management, and environmental remediation. The company’s technological edge in infrastructure, water management and environmental remediation are likely to have aided Jacobs’ growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the P&PS segment’s revenues is pegged at $2,113 million, indicating a 3% increase from the first quarter. The same for backlog indicates growth of 1.4% sequentially.
The Critical Mission Solutions or CMS segment (comprising 35.2% of total revenues) is expected to have benefited from the U.S. federal government's increased focus on defense, energy, intelligence community and NASA. Its strength in critical federal service agencies such DoD and NASA, and ability to gain share through advanced technological applications and efficiencies are likely to reflect on the upcoming quarterly results.
The consensus mark for CMS revenues is $1,286 million, suggesting a rise of 8.8% from the last reported quarter. The same for backlog is pegged at $8,561 million, implying a 1% improvement sequentially.
Apart from solid segmental performance, Jacobs is likely to have benefited from prudent cost-management efforts in the fiscal second quarter. Its efforts toward increasing the share of higher-margin backlog, and dependence on recurring revenues and rebid wins are likely to have boosted profitability to some extent.
Yet, higher transaction, separation and restructuring-related costs, as well as other incremental expenses are expected to have put pressure on margins to some extent.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Jacobs, which share space with KBR, Inc. (KBR - Free Report) in the same industry, this time around. The 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. This is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of +0.79%. 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 #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Vulcan Materials Company (VMC - Free Report) has an Earnings ESP of +0.49% and carries a Zacks Rank #3.
Trex Company, Inc. (TREX - Free Report) has an Earnings ESP of +4.78% and carries a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>