Jacobs Engineering Group Inc.
) reported modest fiscal first-quarter 2013 (ending Dec 28, 2012)
financial results. Though earnings came in line with the Zacks
expectations, the quarter's revenues fell short of the Zacks
The company reported first quarter earnings per share of 76
cents, in line with the Zacks Consensus Estimate. The quarterly
earnings improved 8.6% from the year-ago earnings of 70 cents a
share, due to improvement in revenue as well as margins.
Revenue increased 4.9% year over year to $2.6 billion in the
reported quarter. However, it fell short of the Zacks Consensus
Estimate of $2.8 billion by 2.4%. Technical Professional Services
revenue came in at $1.6 billion, compared with $1.5 billion in
the year-ago quarter. Field Services revenue in first quarter was
$1.2 billion, compared with $1.1 billion in the first quarter of
During the reported quarter, direct costs of contracts, a
major expenditure for Jacobs, edged up 5.1% from the year-ago
quarter to settle at $2.3 billion. Selling, general and
administrative (SG&A) expenses came in at $275.4 million,
down 1.3% year over year.
Operating profit improved to $160.3 million, an increase of
12.9% over the year-ago quarter. Operating margin reached 5.8%
compared wit 5.4% in the year-ago quarter.
Exiting the quarter, backlog stood at $16.2 billion, an
increase of 11.8% from $14.5 billion in the year-ago quarter. It
includes backlog from technical professional services of $10.4
billion versus $9.5 billion at the end of the first quarter of
2012, with the remaining pouring in from Field Services.
The company has won a number of contracts in the quarter,
including a contract to support Air Force Material Command (Oct
16, 2012, worth $27 million); another contract from NASA Stennis
Space Centre in Mississippi to provide modification services (Oct
23, 2012, worth $15 million), yet another from NAVFAC
Mid-Atlantic to provide engineering services (Nov 27, 2012, worth
$30 million), among many others.
Jacobs' cash and cash equivalents at the end of first quarter
were approximately $1.2 billion, a whopping increase of 20.3%
from the previous quarter. Total debt decreased 1.9% sequentially
to $518.2 million as of Dec 28, 2012.
Based on the modest results for the first quarter, Jacobs
maintains its earnings expectation for fiscal 2013 to range
between $3.00 and $3.50 per share, with the Zacks Consensus
Estimate of $3.30. Management also sees ample opportunities to
increase market share as end markets see significant
Jacobs is one of the world's largest and most diverse
providers of technical, professional and construction services.
) is expected to report fourth quarter 2012 results on Feb 25,
2013, with the Zacks Consensus Estimate standing at of 70 cents.
Jacobs currently holds a Zacks Rank #3 (Hold). Peers
National Technical Systems Inc.
) are currently doing well and are worth considering. Both the
stocks hold a Zacks Rank #2 (Buy).
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