Engineering and construction company,
Jacobs Engineering Group Inc.
) is set to report fiscal second-quarter 2014 results on Apr 28,
after the market closes. Last quarter, the company delivered
2.74% negative earnings surprise. Let's see how things are
shaping up for this announcement.
Factors to Consider This Quarter
In the first quarter of fiscal 2014, Jacobs reported weak
results, with earnings per share of 71 cents, 6.6% lower than the
year-ago quarter. The decline in earnings was primarily due to
losses associated with the Sinclair Knight Merz acquisition.
However, total revenue in the quarter increased 11.2% year over
year to $3.1 billion.
Management predicts ample opportunities to increase market
share as end markets promise significant improvement. Over the
past few quarters, Jacobs has grown through contract wins.
Likewise, in fiscal second quarter, the company has won contracts
in various regions across the globe. Moreover, the satisfaction
rate Jacobs provides to its customers is reflected in the repeat
business the company generates.
Our proven model does not conclusively show that Jacobs is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as we see below.
This is because the Most Accurate estimate stands at 89 cents
flat with the Zacks Consensus Estimate. Hence, the difference is
Jacobs has a Zacks Rank #3 (Hold) which when combined with a
0.00% ESP makes surprise prediction difficult. We caution against
stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into
the earnings announcement, especially when the company is seeing
a negative estimate revision momentum.
Other Stocks to Consider
Here are other companies you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
Beazer Homes USA Inc.
), Earnings ESP of +8.70% and a Zacks Rank #3.
Chicago Bridge & Iron Company N.V.
), Earnings ESP of +5.36% and a Zacks Rank #3.
Great Lakes Dredge & Dock Corp.
), Earnings ESP of +66.67% and a Zacks Rank #3.
BEAZER HOMES (BZH): Free Stock Analysis
CHICAGO BRIDGE (CBI): Free Stock Analysis
GREAT LAKES DRG (GLDD): Free Stock Analysis
JACOBS ENGIN GR (JEC): Free Stock Analysis
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