Earnings Preview: Jacobs Engineering Group Inc. - Analyst Blog
November 14 2011 - 7:00AM
Zacks
Jacobs Engineering Group
Inc. (JEC) will be reporting its fourth-quarter and fiscal
2011 earnings on Tuesday, November 15, 2011.
The current Zacks Consensus
Estimate for earnings per share (EPS) is 73 cents, representing an
annualized growth of 18.90%.
With respect to earnings surprises
over the trailing four quarters, JECoutperformed the Zacks
Consensus Estimate in one quarter; was in line in another and
lagged behind in two other quarters. Average earnings surprise was
a negative 1.75%. The average earnings surprise implies that the
company underperformed the Zacks Consensus Estimate by the same
magnitude over the last four quarters.
Third Quarter
Highlights
On July 25, 2011, Jacobs
Engineering Group Inc. reported its financial results for the third
quarter of 2011 with net earnings per diluted share of $0.71 in the
quarter, up from $0.15 reported in the year-ago quarter. Results
were marginally above the Zacks Consensus Estimate of $0.70.
Total revenue jumped 9.4% year over
year to $2,744.2 million, above the Zacks Consensus Estimate of
$2,687.0 million. Revenues from Technical Professional Services
(58.1% of total revenue) increased to $1,593.5 million from
$1,280.1 million in the third quarter of fiscal 2010 while revenues
from Field Services (41.9% of total revenue) dropped 6.3% to
$1,150.7 million.
Agreement of Estimate
Revisions
In the last 30 days, none of the
analysts providing estimate increased or decreased the company’s
earnings per share (EPS) for the fourth quarter, as there was no
catalyst for such change. However, for fiscal 2011, one analyst
increased the estimate in the last 30 days while one decreased the
same for fiscal 2012.
Magnitude of Estimate
Revisions
Estimates over the last 30 days
remained intact at 73 cents per share for the fourth quarter of
2011, representing a year-over-year growth of 18.90%.
Estimate for fiscal 2011 also
remained intact at $2.59 over the last 30 days while that for
fiscal 2012 demonstrated a similar trend at $3.01. These estimates
represented a year-over-year growth of 4.48% for 2011 and 16.03%
for 2012.
Our Take
Jacobs is likely to post impressive
results in the fourth quarter and fiscal 2011 based on improvements
in the economic conditions and end markets as well as the company’s
diversification across geographies and services. We believe that
the company’s contract wins as well as controlled SG&A expenses
and backlogs over time will help to improve financials, going
forward.
Jacobs Engineering Group Inc. is
one of the world's largest engineering and construction companies
providing services to a variety of industrial, commercial and
government clients across a global network. The company directly
competes with its peers, Fluor Corporation (FLR)
and Foster Wheeler AG (FWLT).
We currently maintain a long-term
Neutral recommendation on the stock. Jacobs has a Zacks #3 Rank,
which translates into a short-termHold rating (1-3 months).
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
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