Jacobs Misses Earnings Est. in 2Q13 - Analyst Blog
April 30 2013 - 4:50AM
Zacks
Construction services provider,
Jacobs Engineering Group Inc. (JEC) reported
modest fiscal second-quarter 2013 (ended Mar 29, 2013) financial
results. Although the figures were up on a year-over-year basis,
both earnings and revenues lagged the Zacks Consensus Estimate.
The company reported second-quarter
earnings per share of 80 cents, 2.4% lower than the Zacks Consensus
Estimate of 82 cents. The quarterly earnings improved 23.1% from
the year-ago earnings of 65 cents a share due to improvement in
revenues as well as margins.
Revenues: Revenues
increased 4.9% year over year to $2.83 billion in the reported
quarter. However, it fell short of the Zacks Consensus Estimate of
$2.94 billion by 3.6%. Technical Professional Services revenues
came in at $1.69 billion, compared with $1.65 billion in the
year-ago quarter. Field Services revenues in the reported quarter
was $1.14 billion, compared with $1.05 billion in the second
quarter of fiscal 2012.
Costs/Margin:
During the reported quarter, direct costs of contracts, a major
expenditure for Jacobs, edged up 4.1% from the year-ago quarter to
settle at $2.37 billion. Selling, general and administrative
(SG&A) expenses came in at $299.7 million, up 2.3% year over
year.
Operating margin reached 5.8%,
increasing 90 basis points from the year-ago quarter.
Backlog: Exiting
the quarter, backlog stood at $16.79 billion, an increase of 11.2%
from $15.09 billion in the year-ago quarter. It includes backlog
from Technical Professional Services of $10.89 billion versus $9.90
billion at the end of the second quarter of fiscal 2012, with the
remainder coming from Field Services.
Balance Sheet:
Jacobs’ cash and cash equivalents at the end of fiscal second
quarter were approximately $1.17 billion, declining from $1.24
recorded at the end of the previous quarter. Total debt decreased
13.0% sequentially to $450.8 million as of Mar 29, 2013.
Outlook: Jacobs
reaffirmed its earnings expectations for fiscal 2013 to range
between $3.00 and $3.50 per share. Management also sees ample
opportunities to increase market share with significant improvement
in the end markets.
Jacobs currently carries a Zacks
Rank #2 (Buy). Other stocks to watch out for in the engineering
industry are Fluor Corporation (FLR), carrying a
Zacks Rank #1 (Strong Buy), as well as AECOM Technology
Corporation (ACM) and Harris & Harris Group,
Inc. (TINY), which carry a Zacks Rank #2 (Buy).
AECOM TECH CORP (ACM): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
HARRIS & HARRIS (TINY): Get Free Report
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