Jacobs Engineering Reports $1.90 Non-GAAP EPS, Revenues Beat Expectations by $80M

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Jacobs Engineering Group Inc. (JACOBS SOLUTIONS ($NYSE:J)) recently reported their Non-GAAP EPS of $1.90, which was $0.12 lower than the consensus estimate. Despite this, their revenue of $4.29B managed to beat expectations by $80M. The company attributes their success to strong performance from their Industrial, Aerospace & Technology segment, which saw a 9% increase in revenues from the same quarter last year.

Additionally, their Government segment benefitted from increased infrastructure activity in the US and Canada, as well as higher defense spending. Jacobs Engineering Group Inc. is a multinational engineering services and construction firm headquartered in Dallas, Texas. The company provides design, engineering, construction, and maintenance services to a variety of sectors including oil and gas, transportation, chemicals, and more.

Earnings

In its earning report for FY2023 Q3 as of June 30 2021, JACOBS SOLUTIONS reported total revenues of 3576.44M USD, 108.49M USD in net income, and 1.90 USD in non-GAAP EPS. Compared to the same period last year, total revenues decreased by 6.5%, while net income decreased by 44.6%. However, JACOBS SOLUTIONS has reported an impressive growth in total revenues over the past three years, rising from 3576.44M USD to 4186.7M USD. This indicates strong performance and a positive outlook for the company’s future.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Jacobs Solutions. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Jacobs Solutions. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Jacobs Solutions. More…

Key Ratios Snapshot

Some of the financial key ratios for Jacobs Solutions are shown below. More…

Market Price

On Tuesday, JACOBS SOLUTIONS reported an earnings per share (EPS) of $1.90 on a non-GAAP basis, beating analyst expectations. Additionally, the company reported revenues that exceeded expectations, coming in at $80 million higher than anticipated. Live Quote…

Analysis

At GoodWhale, we conducted an analysis of JACOBS SOLUTIONS‘s wellbeing. According to our Star Chart, JACOBS SOLUTIONS is classified as a ‘cheetah’ – a type of company we conclude that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Such companies may be attractive to investors seeking higher returns, as well as those looking for capital appreciation opportunities. Our analysis also reveals that JACOBS SOLUTIONS has a high health score of 8/10 considering its cashflows and debt, and is capable to safely ride out any crisis without the risk of bankruptcy. In terms of performance, JACOBS SOLUTIONS is strong in asset and medium in dividend, growth, and profitability. This makes it an attractive investment option for those looking for a balance between stability and returns. More…

Peers

In the engineering services industry, Jacobs Engineering Group Inc. competes against a number of companies, including Baran Group Ltd, Henan Communications Planning and Design Institute Co Ltd, and Mold-Tek Technologies Ltd. While each company has its own strengths and weaknesses, Jacobs Engineering Group Inc. has been able to maintain a competitive advantage through its focus on innovation and customer service.

– Baran Group Ltd ($OTCPK:BRANF)

Baran Group Ltd is a diversified holding company with interests in a range of businesses, including real estate, construction, hospitality, and healthcare. The company has a market capitalization of 58.73 million as of 2022 and a return on equity of 4.03%. The company’s real estate portfolio includes residential and commercial properties in the United States, Europe, and Asia. The company’s construction business focuses on the construction of high-end residential and commercial properties. The company’s hospitality business operates a portfolio of luxury hotels and resorts. The company’s healthcare business provides healthcare services to a network of hospitals and clinics.

– Henan Communications Planning and Design Institute Co Ltd ($SZSE:300732)

The company provides engineering consulting and design services in the telecommunications industry in China. As of 2022, it had a market capitalization of $3.02 billion and a return on equity of 9.33%.

– Mold-Tek Technologies Ltd ($BSE:526263)

Mold-Tek Technologies is an Indian company that specializes in injection molding and mold making. It is headquartered in Hyderabad, Telangana. The company has a market cap of 2.61B as of 2022 and a return on equity of 15.67%. Mold-Tek was founded in 1976 and has since grown to become one of the leading providers of injection molding and mold making services in India. The company has a strong presence in the automotive, consumer goods, and electronics industries.

Summary

Investors in Jacobs Solutions reacted negatively to the company’s latest earnings report, which showed non-GAAP earnings per share of $1.90 that missed the consensus estimate by $0.12, while revenue of $4.29B beat consensus by $80M. This led to the stock price dropping on the same day. Going forward, investors should closely monitor Jacobs Solutions’ ability to grow its top line and contain costs to help ensure future profitability.

They should also pay attention to any potential changes in competitive dynamics that could erode the company’s market share or disrupt its business model. Finally, investors should weigh the benefits of any potential strategic acquisitions that Jacobs Solutions may make to determine if they would be accretive to the stock price.