Heavy engineering stocks Jacobs Engineering Group and Fluor traded flat to lower early Friday as investors digested their March-quarter reports. Jacobs earnings, reported late Thursday, beat estimates. Flour delivered mixed results Friday morning.
The reports provide some early visibility into heavy builders gearing up to take on projects funded by the Biden administration's $1.2 trillion infrastructure bill. Refinery construction is also set to boom as demand for oil picks up. The infrastructure bill includes $110 billion in new funding to repair roads and bridges. It also invests $17 billion to improve port infrastructure and waterways, and $25 billion in airport fixes and upgrades.
It earmarks more than $65 billion to upgrade the nation's power infrastructure. In addition, the legislation invests over $50 billion to make communities safer and infrastructure more resilient to the impacts of climate change and cyberattacks.
Dallas-based Jacobs provides a diverse range of technical, professional and construction services to industrial, commercial and government clients.
It provides a full spectrum of cyber, data analytics, systems and software application integration and consulting services. It also provides end-to-end solutions for clients' complex challenges including climate change, energy transition, connected mobility, integrated water management, smart cities and vaccine manufacturing.
Irving, Texas-based Fluor is a global provider of engineering, construction, maintenance and project management services to commercial and government clients. It has particular strength in energy markets, including refineries and liquefied natural gas import and export facilities.
Jacobs Earnings
Jacobs earnings were $1.72 per share, on an adjusted basis, topping views for $1.70 and 3.6% above the year-ago quarter. Sales came in at $3.83 billion, also beating estimates for $3.77 billion and 8.1% higher than the same period last year.
"We are seeing accelerating demand across all end markets, with incremental opportunities to scale in the areas of Climate Response, Consulting & Advisory and Data Solutions," CEO Steve Demetriou said in a news release. "These compelling opportunities are reflected in our results with strong bookings performance during the first half of the fiscal year and 9% backlog growth in the second quarter, which positions us well for the remainder of fiscal 2022."
Q2 backlog totaled $27.8 billion, up 8.7% from a year ago. For the fiscal year ending in September, analyst polled by FactSet expect a 13% earnings gain, to $6.11 per share. Top line forecasts call for a 6% revenue advance, to $14.95 billion.
Jacobs Stock
Jacobs shares fell 3.4% to 137.57 on the stock market today. Jacobs stock edged into buy range past a cup-with-handle buy point of 142.10 on a daily chart on Wednesday, but fell out of buy range on Thursday, according to MarketSmith. Jacobs shares were flat before Friday's open.
Its RS line is trending upward near highs not seen since June 2021. Meanwhile, Jacobs' RS Rating is 84 out of a best possible 99, while its EPS Rating is 85.
Fluor Earnings
Estimates: FactSet analysts expected earnings to more than triple from the year-ago quarter to 22 cents a share and sales to rise 5.5% to $3.101 billion.
Results: Earnings rolled in at 16 cents a share, with revenue at $3.1 billion. Fluor completed the spinout of its NuScale modular nuclear power unit during the quarter, launching the company through a special purpose acquisition company on May 2. Fluor retains 60% ownership of the entity.
NuScale, headquartered in Portland, Ore., employs 540 persons. It is working with the Idaho National Laboratory and the Utah Associated Municipal Power Systems and plans to have its first reactor up and running by 2029.
Fluor Stock
Fluor shares traded flat at to 25.85. FLR stock has tumbled below its 50-day line after peaking at its 52-week high of 31.32 on April 18.
The company's relative strength line also dived, but its RS Rating remains high at 95. Fluor's EPS Rating is 72.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
