Jacobs Beats Estimates by a Penny - Analyst Blog
July 26 2011 - 4:30AM
Zacks
On July 25, 2011, Jacobs
Engineering Group Inc. (JEC) reported its
financial results for the third quarter of 2011 with net earnings
per diluted share of 71 cents in the quarter, up from 15 cents
reported in the year-ago quarter. Results were marginally above the
Zacks Consensus Estimate of 70 cents.
Total revenue inched up 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.
In the third quarter, operating
margin improved 330 basis points to 5.1% from 1.8% in the year-ago
quarter. The performance was primarily attributable to controlled
expenses in the quarter. Direct costs of contracts, a major
expenditure for Jacobs, as a percentage of revenue, decreased to
85% from 89.1% in the prior-year quarter. However, selling, general
and administrative (SG&A) expenses, as a percentage of revenue
rose by 90 basis points to 10%.
At the end of the third quarter,
backlog was approximately $14.0 billion, up from $13.5 billion at
the end of the third quarter of 2010.
Jacobs’ cash and cash equivalents,
exiting the third quarter, was approximately $773.8 million, down
from $941.7 million year over year while total debt increased to
$551.2 million from $94.1 million in the previous year quarter.
Outlook: Jacobs
maintained its earnings guidance range for fiscal year 2011 to
$2.40–$2.80 per share based on steady backlog and solid prospect
list of contracts.
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, such as 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-term Hold 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
Zacks Investment Research
Jacobs Engineering (NYSE:JEC)
Historical Stock Chart
From Sep 2024 to Oct 2024
Jacobs Engineering (NYSE:JEC)
Historical Stock Chart
From Oct 2023 to Oct 2024