More Encouraging FY11 Expected for Jacobs Engineering

Jefferies has published its research report on Jacobs Engineering JEC in which they expect JEC to make a recovery in 2011. Jefferies writes, "Jacobs provided a financial outlook for FY11 with EPS guidance of $2.30-$2.80 ($2.55 midpoint), compared to consensus estimates of $2.58 and our estimate of $2.60. In our opinion, management has been candid about the marketplace prospects in the context of its client mix and backlog. To that point, we think FY11 guidance and specifically the "top end" of the range is encouraging." JEC maintains a Buy rating and closed Tuesday at $39.95.