Jacobs Engineering Earnings Cheat Sheet: Sales Tick Lower

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Jacobs Engineering Group Inc. (NYSE:JEC) from reporting a profit boost in the second quarter. Jacobs Engineering Group Inc. offers its customers technical and construction services including engineering, design, construction management and operations and maintenance services.

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Jacobs Engineering Group Earnings Cheat Sheet for the Second Quarter

Results: Net income for the technical services company rose to $80.3 million (63 cents/share) vs. $77.5 million (62 cents/share) in the same quarter a year earlier. A rise of 3.6% from the year earlier quarter.

Revenue: Fell 1.1% to $2.56 billion YoY.

Actual vs. Wall St. Expectations: JEC fell right in step with the street’s estimates of 63 cents/share.

Quoting Management: Commenting on the results for the second quarter, Jacobs President and CEO Craig L. Martin stated, “Performance in the second quarter improved nicely. Our earnings and backlog are both up from the first quarter, and the outlook remains positive. Several of our markets continue to improve and our prospect list is growing.”

Commenting on the Company’s earnings outlook for the remainder of fiscal 2011, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, “Our guidance for fiscal year 2011, which includes the net contribution of the acquired operations of Aker, is being narrowed from the previous range of $2.40 to $2.85 to a revised range of $2.40 to $2.80.”

Key Stats: Last quarter’s profit increase breaks a streak of four consecutive quarters of year-over-year profit drops. In first quarter, net income fell 9.1% from the year earlier while the figure fell 2.9% in the fourth quarter of the last fiscal year, 79.9% four quarters ago and 29.1% five quarters back.

Over the last five quarters, revenue has fallen an average of 6.9% year over year. The biggest drop came in the second quarter of the last fiscal year, when revenue fell 13.1% from the year earlier quarter.

Competitors to Watch: Fluor Corporation (NYSE:FLR), URS Corporation (NYSE:URS), The Shaw Group Inc. (NYSE:SHAW), Tetra Tech, Inc. (NASDAQ:TTEK), KBR, Inc. (NYSE:KBR), Michael Baker Corporation (AMEX:BKR), AECOM Technology Corp. (NYSE:ACM), Granite Construction Inc. (NYSE:GVA), Willdan Group, Inc. (NASDAQ:WLDN), and Quanta Services, Inc. (NYSE:PWR).

Today’s Performance: Shares of JEC are trading at $49.77 as of April 26, 2011 at 3:14 PM ET, down over 3% from the previous close.


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