KBR Earnings: Here’s Why Shares are Down Now

KBR, Inc. (NYSE:KBR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.03%.

KBR, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 12.86% to $0.61 in the quarter versus EPS of $0.70 in the year-earlier quarter.

Revenue: Decreased 3.2% to $2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: KBR, Inc. reported adjusted EPS income of $0.61 per share. By that measure, the company beat the mean analyst estimate of $0.57. It beat the average revenue estimate of $1.93 billion.

Quoting Management: “KBR delivered solid project execution in the second quarter, driving job income and job income margins up 8% and 153 basis points year-over-year, respectively,” said Bill Utt, Chairman, President, and Chief Executive Officer of KBR. “We also made strong progress on bookings in North America, with key strategic wins in Downstream with nearly $1 billion in EPC awards in ammonia and ethylene, with the technology licenses awarded related to these downstream wins, and with a North American FEED award for the Pacific Northwest LNG project in Canada in our Gas Monetization business. These wins help to affirm KBR’s position as a premiere North American contractor.”

Key Stats (on next page)…

Revenue increased 7.37% from $1.86 billion in the previous quarter. EPS increased 3.39% from $0.59 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.75 to a profit $0.72. For the current year, the average estimate has moved up from a profit of $2.64 to a profit of $2.69 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)