- Jacobs Engineering Group Inc J reported third-quarter revenue growth of 9.7% year-over-year to $3.58 billion, missing the consensus of $3.64 billion.
- Revenues by segments: Critical Mission Solutions $1.22 billion (+0.6% Y/Y), People & Places Solutions $2.1 billion (+2.6% Y/Y) and PA Consulting $255.8 million.
- Adjusted EPS improved to $1.64 from $1.26 in 3Q20, beating the consensus of $1.53.
- The gross margin expanded by 350 bps to 22.8%.
- The operating income increased by 35.7% Y/Y to $263.75 million, and the margin expanded by 140 bps to 7.4%.
- Jacobs Engineering generated cash from operating activities year-to-date of $523.57 million, compared to $374.48 million a year ago.
- At the end of the quarter, the company's backlog was $25.44 billion, up 7.4% Y/Y.
- "We believe we are entering an attractive growth period for Jacobs, driven by strong global trends in infrastructure modernization, energy transition, national, security and a potential super-cycle in global supply chain investments. We see these opportunities leading to an increasing and robust sales pipeline developing in FY22 and into FY23," commented Chair and CEO Steve Demetriou.
- FY21 Outlook: Jacobs Engineering expects adjusted EBITDA of $1.21 billion - $1.275 billion (prior view $1.20 billion - $1.27 billion) and adjusted EPS of $6.15 - $6.35 (prior view $6.00 - $6.30), versus the consensus of $6.19.
- It also increased the expected adjusted EPS net accretion from PA Consulting to $0.35 - $0.37 from $0.32 - $0.34.
- Price action: J shares traded lower by 2.91% at $130.00 on the last check Tuesday.
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