Jacobs Engineering Group Inc.
) is scheduled to release its third-quarter fiscal 2014 (ended Jun
27, 2014) results after the market closes on Jul 28. The company
had delivered a negative earnings surprise of 7.87% in the
preceding quarter. Let's see how things are shaping up prior to
Factors to Consider
Recently, Jacobs has been growing on the back of continuous
contract wins. In the to-be-reported quarter, the company has
received contracts in various regions including the U.K., Ohio,
Canada, Belgium, Indonesia, Saudi Arabia and Sweden, to name a few.
Further, acquisitions have aided Jacobs' expansion. The company has
been gaining higher market share due to its inorganic growth. The
company has a strong cash position to fund its future acquisitions
as well as repay its debt.
With end markets promising a significant improvement, management
predicts ample opportunities for the company to increase its market
share. Moreover, the volume of repeat business generated by the
company denotes the satisfaction rate of its customers.
Our proven model conclusively shows that Jacobs is likely to
miss earnings this quarter. That is because a stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as we shall see below.
Jacobs' Most Accurate estimate is 77 cents, while the Zacks
Consensus is pegged slightly higher at 80 cents. Hence, the
Earnings ESP is -3.75%.
Jacobs has a Zacks Rank #4 (Sell) which lowers the predictive power
of ESP. We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revision
Other Stocks to Consider
Here are some other companies in the industry that investors may
want to consider on the basis of our model, which shows that they
have the right combination of elements to post an earnings beat
Fluor Corporation (
), Earnings ESP of +3.06% and a Zacks Rank #2 (Buy).
PulteGroup, Inc. (
), Earnings ESP of +2.86% and a Zacks Rank #3 (Hold).
Chicago Bridge & Iron Company N.V. (
), Earnings ESP of +0.72% and a Zacks Rank #3.
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JACOBS ENGIN GR (JEC): Free Stock Analysis
FLUOR CORP-NEW (FLR): Free Stock Analysis
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PULTE GROUP ONC (PHM): Free Stock Analysis
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