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In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 3.8% and 0.5%, respectively. On a year-over-year basis, its earnings declined 7.3%, but revenues grew 4.7%.
The leading provider of professional, technical and construction services’ earnings topped the consensus mark in two of the last four quarters, with the average being 7.9%.
Trend in Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) declined to $1.95 from $1.96 in the past 30 days. The estimated figure indicates a 7.1% increase from the $1.82 reported in the year-ago quarter.
The consensus mark for revenues is pegged at $4.38 billion, indicating 4.7% growth from the year-ago quarter’s reported figure of $4.19 billion.
Factors to Note
Jacobs’ revenues are expected to boost in the third quarter of fiscal 2024, thanks to investments from the U.S. Infrastructure Act and other economic incentives. The company's strategic move away from being solely an engineering and construction firm toward a globally-focused technology solutions provider is likely to have reflected in the upcoming financial report.
Additionally, this 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.
J’s continuous shift to digitalization and leadership in strategic end markets like space exploration, life sciences, cyber and water solutions bode well. Again, the U.S. Department of Defense’s increased focus on strategic data utilization is likely to have driven Jacobs’ growth.
A favorable revenue mix in both People & Places Solutions (P&PS) and Critical Mission Solutions (CMS) segments and benefits from PA Consulting (which has a solid accretive gross margin profile of nearly 50%) are likely to get reflected in margins. However, higher overhead costs to facilitate the separation of CMS might have dented margins.
Segment-wise, higher spending from the transportation sector and accelerated investments toward drinking water, wastewater, flood protection and climate resilience might have aided the company’s fiscal third-quarter performance in the P&PS segment (which accounted for 58.4% of total revenues in fiscal 2023).
Rapid implementation of digital technologies has been optimizing clients’ operational spending and mitigating revenue challenges. Further, environmental and green economy projects remain strong.
The Zacks Consensus Estimate for P&PS segment revenues is currently pegged at $2.6 billion, reflecting growth from $2.47 billion year over year. P&PS’s operating profit is expected to grow to $268.9 million from the year-ago figure of $$242.7 million.
The CMS segment (which accounted for 28.7% of total fiscal 2023 revenues) is expected to have benefited from the consistent performance of the Cyber and Mission-IT business. The company’s CMS strategy has been 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 global energy transition, space-based ISR, intelligence analytics and 5G networks.
The consensus mark for the CMS segment’s revenues is currently pegged at $1.193 billion, indicating a marginal growth from $1.19 billion a year ago. The CMS segment’s operating profit is expected to be $103.3 million, up from $99.1 million reported a year ago.
For the Divergent Solutions segment (which accounted for 5.8% of total fiscal 2023 revenues), the consensus mark for revenues is currently pegged at $249.1 million, indicating a rise from $239.3 million a year ago. The segment’s operating profit is expected to be $21.7 million, up from $20.8 million reported in the prior quarter.
The consensus mark for the PA Consulting segment’s (which accounted for 7.1% of total fiscal 2023 revenues) revenues is currently pegged at $303.1 million, up from $286.9 million a year ago. The segment’s operating profit is expected to be $62.7 million, up from $60.9 million year over year.
Meanwhile, on Nov 20, 2023, Jacobs inked a deal to spin off and merge its CMS business and Cyber & Intelligence unit (which is part of the DVS segment) with a global engineering and technology solutions provider, Amentum. For that, Jacobs anticipates temporarily increased overhead costs necessary to facilitate the separation of CMS, encompassing IT and corporate support.
As Jacobs continues its journey toward separation and streamlining its corporate cost structure, it has opted to transfer certain corporate unallocated costs to the P&PS segment. This move aims to enhance the long-term recuperation of its corporate overhead. Although this adjustment may temporarily lower segment operating margins, it does not affect the bottom line.
What the Zacks Model Says
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 -0.68%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Quanta Services Inc. (PWR - Free Report) reported mixed results for second-quarter 2024, wherein adjusted earnings missed the Zacks Consensus Estimate, but revenues surpassed the same. Both metrics increased on a year-over-year basis.
Quanta's performance in the second quarter marks a strong base for the rest of 2024, characterized by impressive growth across key metrics. Moreover, the company has raised its 2024 guidance for major metrics, owing to the expected contributions from its recent acquisition of CEI.
KBR, Inc. (KBR - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
KBR performed well across key metrics and expects this trend to continue for the rest of the year. Driven by robust performance in its core business, KBR raised its adjusted EBITDA and cash flow guidance for 2024.
Fluor Corporation (FLR - Free Report) reported mixed results for second-quarter 2024, with earnings missing the Zacks Consensus Estimate but revenues beating the same. On a year-over-year basis, both earnings and revenues increased, given solid contributions from the Urban Solutions segment.
In the second half of 2024, FLR will focus on deploying resources to its high-value project backlog and positioning the company to return capital to shareholders.
Image: Bigstock
Jacobs (J) Gears Up to Report Q3 Earnings: What to Expect
Jacobs Solutions, Inc. (J - Free Report) is slated to report third-quarter fiscal 2024 results on Aug 6, before market open.
In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 3.8% and 0.5%, respectively. On a year-over-year basis, its earnings declined 7.3%, but revenues grew 4.7%.
The leading provider of professional, technical and construction services’ earnings topped the consensus mark in two of the last four quarters, with the average being 7.9%.
Trend in Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) declined to $1.95 from $1.96 in the past 30 days. The estimated figure indicates a 7.1% increase from the $1.82 reported in the year-ago quarter.
Jacobs Solutions Inc. Price and EPS Surprise
Jacobs Solutions Inc. price-eps-surprise | Jacobs Solutions Inc. Quote
The consensus mark for revenues is pegged at $4.38 billion, indicating 4.7% growth from the year-ago quarter’s reported figure of $4.19 billion.
Factors to Note
Jacobs’ revenues are expected to boost in the third quarter of fiscal 2024, thanks to investments from the U.S. Infrastructure Act and other economic incentives. The company's strategic move away from being solely an engineering and construction firm toward a globally-focused technology solutions provider is likely to have reflected in the upcoming financial report.
Additionally, this 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.
J’s continuous shift to digitalization and leadership in strategic end markets like space exploration, life sciences, cyber and water solutions bode well. Again, the U.S. Department of Defense’s increased focus on strategic data utilization is likely to have driven Jacobs’ growth.
A favorable revenue mix in both People & Places Solutions (P&PS) and Critical Mission Solutions (CMS) segments and benefits from PA Consulting (which has a solid accretive gross margin profile of nearly 50%) are likely to get reflected in margins. However, higher overhead costs to facilitate the separation of CMS might have dented margins.
Segment-wise, higher spending from the transportation sector and accelerated investments toward drinking water, wastewater, flood protection and climate resilience might have aided the company’s fiscal third-quarter performance in the P&PS segment (which accounted for 58.4% of total revenues in fiscal 2023).
Rapid implementation of digital technologies has been optimizing clients’ operational spending and mitigating revenue challenges. Further, environmental and green economy projects remain strong.
The Zacks Consensus Estimate for P&PS segment revenues is currently pegged at $2.6 billion, reflecting growth from $2.47 billion year over year. P&PS’s operating profit is expected to grow to $268.9 million from the year-ago figure of $$242.7 million.
The CMS segment (which accounted for 28.7% of total fiscal 2023 revenues) is expected to have benefited from the consistent performance of the Cyber and Mission-IT business. The company’s CMS strategy has been 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 global energy transition, space-based ISR, intelligence analytics and 5G networks.
The consensus mark for the CMS segment’s revenues is currently pegged at $1.193 billion, indicating a marginal growth from $1.19 billion a year ago. The CMS segment’s operating profit is expected to be $103.3 million, up from $99.1 million reported a year ago.
For the Divergent Solutions segment (which accounted for 5.8% of total fiscal 2023 revenues), the consensus mark for revenues is currently pegged at $249.1 million, indicating a rise from $239.3 million a year ago. The segment’s operating profit is expected to be $21.7 million, up from $20.8 million reported in the prior quarter.
The consensus mark for the PA Consulting segment’s (which accounted for 7.1% of total fiscal 2023 revenues) revenues is currently pegged at $303.1 million, up from $286.9 million a year ago. The segment’s operating profit is expected to be $62.7 million, up from $60.9 million year over year.
Meanwhile, on Nov 20, 2023, Jacobs inked a deal to spin off and merge its CMS business and Cyber & Intelligence unit (which is part of the DVS segment) with a global engineering and technology solutions provider, Amentum. For that, Jacobs anticipates temporarily increased overhead costs necessary to facilitate the separation of CMS, encompassing IT and corporate support.
As Jacobs continues its journey toward separation and streamlining its corporate cost structure, it has opted to transfer certain corporate unallocated costs to the P&PS segment. This move aims to enhance the long-term recuperation of its corporate overhead. Although this adjustment may temporarily lower segment operating margins, it does not affect the bottom line.
What the Zacks Model Says
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 -0.68%. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Construction Releases
Quanta Services Inc. (PWR - Free Report) reported mixed results for second-quarter 2024, wherein adjusted earnings missed the Zacks Consensus Estimate, but revenues surpassed the same. Both metrics increased on a year-over-year basis.
Quanta's performance in the second quarter marks a strong base for the rest of 2024, characterized by impressive growth across key metrics. Moreover, the company has raised its 2024 guidance for major metrics, owing to the expected contributions from its recent acquisition of CEI.
KBR, Inc. (KBR - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
KBR performed well across key metrics and expects this trend to continue for the rest of the year. Driven by robust performance in its core business, KBR raised its adjusted EBITDA and cash flow guidance for 2024.
Fluor Corporation (FLR - Free Report) reported mixed results for second-quarter 2024, with earnings missing the Zacks Consensus Estimate but revenues beating the same. On a year-over-year basis, both earnings and revenues increased, given solid contributions from the Urban Solutions segment.
In the second half of 2024, FLR will focus on deploying resources to its high-value project backlog and positioning the company to return capital to shareholders.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.