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Jacobs Solutions Inc. (J), headquartered in Dallas, Texas, is a leading technical professional services provider. With a market cap of $17.6 billion, the company offers engineering and construction services, as well as scientific and specialty consulting for a broad range of clients including companies, organizations, and government agencies. The premier technology enabled solutions provider is expected to announce its fiscal fourth-quarter earnings for 2024 on Tuesday, Nov. 19.
Ahead of the event, analysts expect J to report a profit of $2.08 per share on a diluted basis, up 9.5% from $1.90 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect J to report EPS of $7.95, up 10.4% from $7.20 in fiscal 2023. Its EPS is expected to rise 14% year over year to $9.06 in fiscal 2025.
J stock has underperformed the S&P 500’s ($SPX) 38.7% gains over the past 52 weeks, with shares up 27% during this period. Similarly, it underperformed the Industrial Select Sector SPDR Fund’s (XLI) 38.6% gains over the same time frame.
Jacobs Solutions has faced challenges recently due to delays in its division spin-offs and reliance on U.S. federal contracts in a time of budget uncertainty and rising costs. This has led to underperformance in the company's Critical Mission Solutions and Cyber & Intelligence divisions.
On Aug. 6, J shares closed up marginally after reporting its Q3 results. Its adjusted EPS of $1.96 exceeded Wall Street expectations of $1.95. The company’s revenue stood at $4.2 billion, up 1.1% year over year. Jacobs Solutions expects full-year adjusted EPS to be between $7.85 and $8.05.
Analysts’ consensus opinion on J stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 13 analysts covering the stock, seven advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, and four give a “Hold.” J’s average analyst price target is $160.20, indicating a potential upside of 14% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
