Jacobs In-line, Reaffirms Guidance - Analyst Blog
January 26 2012 - 3:00AM
Zacks
On January 25, 2012, Jacobs
Engineering Group Inc. (JEC) reported its financial
results for the first quarter 2012 with earnings per diluted share
of 70 cents in the quarter, up from 52 cents reported in the
year-ago quarter, based on solid sales and operations performance
on the backdrop of improving markets. The results were in line with
the Zacks Consensus Estimate.
Total revenue in the first quarter
jumped 11.7% year over year to $2,631.8 million, below the Zacks
Consensus Estimate of $2,717.0 million.
Revenues from Technical
Professional Services (58.4% of total revenue) increased to
$1,538.0 million from $1,204.8 million in the year-ago quarter,
while revenues from Field Services (41.6% of total revenue)
decreased marginally to $1,093.7 million from $1,151.4 million in
the year-ago quarter.
During the quarter, direct costs of
contracts, a major expenditure for Jacobs, was recorded at $2,210.7
million compared with $ 2,025.1 million in the prior-year quarter.
Selling, general and administrative (SG&A) expenses, came in at
$279.1 million up from $227.4 in the year-ago quarter. Operating
profit improved to $142 million from $103.6 million in the year-ago
quarter.
At the end of the first quarter,
backlog was approximately $14.5 billion, including a technical
professional services component of $9.5 billion, up from $13.0
billion, including a technical professional services component of
$7.9 billion at the end of the first quarter 2011.
Jacobs’ cash and cash equivalents,
exiting the first quarter, was approximately $959.2 million, down
from $1,039.7 million a year ago, while total debt increased to
$535.7 million from $82.4 million in the previous year quarter.
Outlook: Jacobs
reaffirmed its earnings guidance for fiscal year 2012 within a
range of $2.80 to $3.20 per share based on a steady backlog and
improved growth prospects.
Jacobs Engineering Group, one of
the world's largest and most diverse providers of technical,
professional, and construction services, serves a variety of
industrial, commercial and government clients across a global
network. The company directly competes with its peers, such as
Fluor Corporation (FLR) and Foster Wheeler
AG (FWLT).
We currently hold a Neutral
recommendation on the stock. Jacobs has a Zacks #2 Rank, implying a
short-term (1-3 months) Buy rating.
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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