Jacobs Engineering Group Inc. Earnings Cheat Sheet: Revenue Growth Drives Margin, Profit Increases
S&P 500 (NYSE:SPY) component Jacobs Engineering Group Inc. (NYSE:JEC) reported its results for the third quarter. Jacobs Engineering Group Inc. offers its customers technical and construction services including engineering, design, construction management and operations and maintenance services.
Jacobs Engineering Group Earnings Cheat Sheet for the Third Quarter
Results: Net income for the technical services company rose to $90.7 million (71 cents per share) vs. $19 million (15 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.
Revenue: Rose 9.4% to $2.74 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: JEC beat the mean analyst estimate of 70 cents per share. Analysts were expecting revenue of $2.7 billion.
Quoting Management: Jacobs President and CEO Craig L. Martin stated, “Our performance for the quarter was good, particularly in controlling SG&A. Given our steady backlog and solid prospect list, our outlook remains positive.”
A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the fourth quarter of the last fiscal year, which saw an 8.2% decrease.
The company beat estimates last quarter after being in line with expectations in the second quarter with net income of 63 cents per share.
Net income has increased 57.5% year over year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than fourfold from the year earlier quarter.
Gross margins grew 4.2 percentage points to 15%. The growth seemed to be driven by increased revenue, as the figure rose 9.4% from the year earlier quarter while costs rose 4.3%.
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).
(Source: Xignite Financials)