On Apr 11, 2014, we issued an updated research report on
). The company has secured a substantial share of the Liquefied
Natural Gas (LNG) and ammonia processing market.
The momentum in shale gas revolution in North America is
generating promising opportunities for LNG, ammonia and ethylene
projects. KBR is benefiting from this upside in the LNG market
and has been receiving a steady inflow of orders globally from
large refineries as well as oil and gas facilities.
KBR reported dismal fourth-quarter 2013 results with adjusted
income of 52 cents per share, which fell significantly short of
the Zacks Consensus Estimate of 90 cents. The quarterly revenues
had also declined owing to poor performances at its Gas
Monetization segment and Infrastructure, Government and Power
segment. The company's share price has trended downward since
then, decreasing by more than 18% in less than 3 months.
The delay in completion of a number of projects dragged
revenues further. Moreover, the company was negatively impacted
by adverse tax conditions and additional legal and foreign
exchange charges that were not anticipated earlier.
However, the company's strong cash flow and a healthy
book-to-bill ratio partially offset the negatives.
This Zacks Rank #5 (Strong Sell) stock has delivered negative
earnings surprises in 2 of the trailing 4 quarters with an
average miss of 12.63%. The Zacks Consensus Estimate for 2014
earnings of $1.90 per share indicates a decrease of 11.21%
compared with the prior-year earnings.
The company is prone to be impacted by currency fluctuations
and adverse global, political and economical conditions as a
large portion of the company's revenues is derived from non-U.S.
Some better-ranked stocks that can be considered at the moment
Willdan Group, Inc.
Quanta Services, Inc.
), all of which have a Zacks Rank #2 (Buy).
KBR INC (KBR): Get Free Report
QUANTA SERVICES (PWR): Free Stock Analysis
VSE CORP (VSEC): Free Stock Analysis Report
WILLDAN GROUP (WLDN): Get Free Report
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