Construction services provider,
Jacobs Engineering Group Inc.
) reported modest fiscal second-quarter 2013 (ended Mar 29, 2013)
financial results. Although the figures were up on a
year-over-year basis, both earnings and revenues lagged the Zacks
The company reported second-quarter earnings per share of 80
cents, 2.4% lower than the Zacks Consensus Estimate of 82 cents.
The quarterly earnings improved 23.1% from the year-ago earnings
of 65 cents a share due to improvement in revenues as well as
Revenues increased 4.9% year over year to $2.83 billion in the
reported quarter. However, it fell short of the Zacks Consensus
Estimate of $2.94 billion by 3.6%. Technical Professional
Services revenues came in at $1.69 billion, compared with $1.65
billion in the year-ago quarter. Field Services revenues in the
reported quarter was $1.14 billion, compared with $1.05 billion
in the second quarter of fiscal 2012.
During the reported quarter, direct costs of contracts, a major
expenditure for Jacobs, edged up 4.1% from the year-ago quarter
to settle at $2.37 billion. Selling, general and administrative
(SG&A) expenses came in at $299.7 million, up 2.3% year over
Operating margin reached 5.8%, increasing 90 basis points from
the year-ago quarter.
Exiting the quarter, backlog stood at $16.79 billion, an increase
of 11.2% from $15.09 billion in the year-ago quarter. It includes
backlog from Technical Professional Services of $10.89 billion
versus $9.90 billion at the end of the second quarter of fiscal
2012, with the remainder coming from Field Services.
Jacobs' cash and cash equivalents at the end of fiscal second
quarter were approximately $1.17 billion, declining from $1.24
recorded at the end of the previous quarter. Total debt decreased
13.0% sequentially to $450.8 million as of Mar 29, 2013.
Jacobs reaffirmed its earnings expectations for fiscal 2013 to
range between $3.00 and $3.50 per share. Management also sees
ample opportunities to increase market share with significant
improvement in the end markets.
Jacobs currently carries a Zacks Rank #2 (Buy). Other stocks
to watch out for in the engineering industry are
), carrying a Zacks Rank #1 (Strong Buy), as well as
AECOM Technology Corporation
Harris & Harris Group, Inc.
), which carry a Zacks Rank #2 (Buy).
AECOM TECH CORP (ACM): Free Stock Analysis
FLUOR CORP-NEW (FLR): Free Stock Analysis
JACOBS ENGIN GR (JEC): Free Stock Analysis
HARRIS & HARRIS (TINY): Get Free Report
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