Jacobs Engineering First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Jacobs Engineering (NYSE:JEC) will unveil its latest earnings tomorrow, Wednesday, January 23, 2013. Jacobs Engineering Group offers its customers technical and construction services including engineering, design, construction management and operations and maintenance services.

Jacobs Engineering Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 76 cents per share, a rise of 8.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 78 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 76 cents during the last month. Analysts are projecting profit to rise by 13.4% compared to last year’s $3.30.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by one cent in the third quarter of the last fiscal year, the company fell in line with expectations by reporting net income of 80 cents per share last quarter.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 13.9% to $107.4 million (83 cents a share) from $94.3 million (74 cents a share) the year earlier, meeting analyst expectations. Revenue rose 2.3% to $2.79 billion from $2.72 billion.

Here’s how Jacobs Engineering traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

JEC

Wall St. Revenue Expectations: On average, analysts predict $2.84 billion in revenue this quarter, a rise of 8% from the year-ago quarter. Analysts are forecasting total revenue of $12.03 billion for the year, a rise of 10.5% from last year’s revenue of $10.89 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.07 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.1 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 11.2% to $1.75 billion while assets rose 9.3% to $3.61 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 4.6% in the second quarter of the last fiscal year and 8% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.7% in the first quarter of the last fiscal year, 5.7% in the second quarter of the last fiscal year and 1% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)