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.
In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 10.8% and 0.2%, respectively. On a year-over-year basis, this leading provider of professional, technical and construction services’ earnings and revenues grew 30.2% and 9.7%, respectively.
Jacobs’ earnings topped the consensus mark in the last four quarters, the average surprise being 17.5%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased to $1.48 from $1.47 over the past 30 days. The estimated figure indicates a 9.2% decrease from $1.63 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $3.8 billion, suggesting 7.9% growth from the year-ago reported figure of $3.52 billion.
Jacobs Engineering Group Inc. Price and EPS Surprise
Jacobs’ strategic focus on transforming from an engineering and construction to a global technology-forward solutions company is expected to reflect on fiscal fourth-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. Notably, it has been continuously shifting to digital and leadership in strategic end markets like space exploration, life sciences, cyber as well as water solutions. Again, the U.S. Department of Defense’s increased focus on strategic data utilization is likely to have driven growth for Jacobs.
For the fourth quarter, Jacobs expects total reported net revenue growth to be near double digits year over year and up slightly on a pro forma basis. This represents strong underlying growth considering its fourth quarter of fiscal 2020 had 14 weeks compared to its normal 13-week quarters. This extra week of revenue last year is expected to impact its fourth-quarter 2021 growth rate by approximately eight percentage points on a year-over-year basis.
Segment-wise, Jacobs’s People & Places Solutions or P&PS segment (comprising 63% of total revenues) is expected to have witnessed higher revenues. Higher spending from the transportation sector and accelerated investments toward drinking water, wastewater, flood protection as well as climate resilience might have aided the company’s fiscal second-quarter performance. Rapid implementation of digital technologies has been optimizing clients’ operational spending and mitigating their revenue challenges. Moreover, environmental and green economy projects have remained strong.
The Zacks Consensus Estimate for the P&PS segment’s net revenues is pegged at $1,548 million, indicating a 3% year-over-year increase. Meanwhile, higher-margin mix in the sales pipeline and lower costs arising from the proper implementation of Focus 2023 initiatives are likely to have driven margins. The Zacks Consensus Estimate for the P&PS segment’s operating profit is pegged at $201 million, indicating 9.8% growth from a year ago.
The Critical Mission Solutions or CMS segment (comprising 37% of total revenues) is expected to have benefited from the consistently strong performance by the Cyber and Mission-IT business. The company’s CMS strategy is 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 in the global energy transition, space-based ISR, intelligence analytics and 5G networks.
For the fiscal fourth quarter, Jacobs expects relatively flat CMS reported revenue growth and mid-single-digit operating profit growth as the timing of recent wins are now expected to ramp up in the fiscal year 2022.
The Zacks Consensus Estimate for the CMS segment’s revenues is pegged at $1,291 million, indicating a 2.9% decline from a year ago. The consensus mark for the CMS segment’s operating profit is $116 million, suggesting 7.4% growth from $108 million a year ago.
Meanwhile, an increase in medical costs, IT investments and other expenses will likely reflect in the fiscal fourth-quarter results. Jacobs expects non-allocated corporate costs to have been higher in the quarter, given the continued increases in medical costs and other investments. Also, total net charges for Focus 2023 as well as other restructuring and integration activities added to the negatives.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Jacobs 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.
Earnings ESP: Jacobs has an Earnings ESP of +4.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Recent Performance of Some Other Engineering – R&D Services Companies
Quanta Services Inc. (PWR - Free Report) reported third-quarter 2021 results, wherein adjusted earnings not only surpassed the Zacks Consensus Estimate by 0.7% but also grew 5.7% on a year-over-year basis. Revenues also improved 10.9% from a year ago but missed the consensus mark by 2.2%.
Quanta currently carries a Zacks Rank #3. PWR has gained 64.5% year to date compared with a 37.8% rise of the Zacks Engineering - R and D Services industry it belongs to.
KBR, Inc. (KBR - Free Report) reported third-quarter 2021 results, wherein earnings and revenues topped the Zacks Consensus Estimate by 12.3% and 18.8%, respectively. The company also raised its full-year view. Earnings and revenues grew 45.5% and 33.6% year over year, respectively. KBR benefited from solid Government Solutions organic growth and strong execution across the business.
KBR currently carries a Zacks Rank #3. The stock has gained 47.7% year to date.
Fluor Corporation (FLR - Free Report) reported impressive third-quarter 2021 results, wherein earnings surpassed the Zacks Consensus Estimate by 43.8% but revenues missed the same by 6.3%. Fluor made significant progress toward strategic goals of reducing outstanding debt by 30% and identified ways for more than $150 million in annual cost savings.
Fluor currently carries a Zacks Rank #3. The stock has gained 44.1% year to date.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Jacobs (J) Gears Up for Q4 Earnings: What's in the Offing?
Jacobs Engineering Group Inc. (J - Free Report) is slated to report fourth-quarter fiscal 2021 results on Nov 23, before the opening bell.
In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 10.8% and 0.2%, respectively. On a year-over-year basis, this leading provider of professional, technical and construction services’ earnings and revenues grew 30.2% and 9.7%, respectively.
Jacobs’ earnings topped the consensus mark in the last four quarters, the average surprise being 17.5%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased to $1.48 from $1.47 over the past 30 days. The estimated figure indicates a 9.2% decrease from $1.63 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $3.8 billion, suggesting 7.9% growth from the year-ago reported figure of $3.52 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 from an engineering and construction to a global technology-forward solutions company is expected to reflect on fiscal fourth-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. Notably, it has been continuously shifting to digital and leadership in strategic end markets like space exploration, life sciences, cyber as well as water solutions. Again, the U.S. Department of Defense’s increased focus on strategic data utilization is likely to have driven growth for Jacobs.
For the fourth quarter, Jacobs expects total reported net revenue growth to be near double digits year over year and up slightly on a pro forma basis. This represents strong underlying growth considering its fourth quarter of fiscal 2020 had 14 weeks compared to its normal 13-week quarters. This extra week of revenue last year is expected to impact its fourth-quarter 2021 growth rate by approximately eight percentage points on a year-over-year basis.
Segment-wise, Jacobs’s People & Places Solutions or P&PS segment (comprising 63% of total revenues) is expected to have witnessed higher revenues. Higher spending from the transportation sector and accelerated investments toward drinking water, wastewater, flood protection as well as climate resilience might have aided the company’s fiscal second-quarter performance. Rapid implementation of digital technologies has been optimizing clients’ operational spending and mitigating their revenue challenges. Moreover, environmental and green economy projects have remained strong.
The Zacks Consensus Estimate for the P&PS segment’s net revenues is pegged at $1,548 million, indicating a 3% year-over-year increase. Meanwhile, higher-margin mix in the sales pipeline and lower costs arising from the proper implementation of Focus 2023 initiatives are likely to have driven margins. The Zacks Consensus Estimate for the P&PS segment’s operating profit is pegged at $201 million, indicating 9.8% growth from a year ago.
The Critical Mission Solutions or CMS segment (comprising 37% of total revenues) is expected to have benefited from the consistently strong performance by the Cyber and Mission-IT business. The company’s CMS strategy is 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 in the global energy transition, space-based ISR, intelligence analytics and 5G networks.
For the fiscal fourth quarter, Jacobs expects relatively flat CMS reported revenue growth and mid-single-digit operating profit growth as the timing of recent wins are now expected to ramp up in the fiscal year 2022.
The Zacks Consensus Estimate for the CMS segment’s revenues is pegged at $1,291 million, indicating a 2.9% decline from a year ago. The consensus mark for the CMS segment’s operating profit is $116 million, suggesting 7.4% growth from $108 million a year ago.
Meanwhile, an increase in medical costs, IT investments and other expenses will likely reflect in the fiscal fourth-quarter results. Jacobs expects non-allocated corporate costs to have been higher in the quarter, given the continued increases in medical costs and other investments. Also, total net charges for Focus 2023 as well as other restructuring and integration activities added to the negatives.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Jacobs 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.
Earnings ESP: Jacobs has an Earnings ESP of +4.05%. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Performance of Some Other Engineering – R&D Services Companies
Quanta Services Inc. (PWR - Free Report) reported third-quarter 2021 results, wherein adjusted earnings not only surpassed the Zacks Consensus Estimate by 0.7% but also grew 5.7% on a year-over-year basis. Revenues also improved 10.9% from a year ago but missed the consensus mark by 2.2%.
Quanta currently carries a Zacks Rank #3. PWR has gained 64.5% year to date compared with a 37.8% rise of the Zacks Engineering - R and D Services industry it belongs to.
KBR, Inc. (KBR - Free Report) reported third-quarter 2021 results, wherein earnings and revenues topped the Zacks Consensus Estimate by 12.3% and 18.8%, respectively. The company also raised its full-year view. Earnings and revenues grew 45.5% and 33.6% year over year, respectively. KBR benefited from solid Government Solutions organic growth and strong execution across the business.
KBR currently carries a Zacks Rank #3. The stock has gained 47.7% year to date.
Fluor Corporation (FLR - Free Report) reported impressive third-quarter 2021 results, wherein earnings surpassed the Zacks Consensus Estimate by 43.8% but revenues missed the same by 6.3%. Fluor made significant progress toward strategic goals of reducing outstanding debt by 30% and identified ways for more than $150 million in annual cost savings.
Fluor currently carries a Zacks Rank #3. The stock has gained 44.1% year to date.