Jacobs earnings miss forecasts
Shares of Jacobs Engineering Group Inc. fell sharply Tuesday after the giant construction services and engineering firm posted quarterly earnings that fell short of Wall Street’s forecasts.
Jacobs’ stock declined $2.66 a share, or 5.7%, to $44 after being down more than 9% earlier in the session. A year earlier, the stock traded at $62 a share.
The drop in global oil prices was one factor affecting the Pasadena company in the latest quarter because it’s causing energy companies to think twice about spending for new projects.
“Current head winds caused by energy and commodity prices” are a key reason why “we continue to be cautious in our short-term outlook,” Jacobs Executive Chairman Noel Watson said in a statement.
Jacobs said earnings for its fiscal second quarter ended March 27, adjusted for restructuring costs and other special items, fell 16.2% from a year earlier to $91.6 million, or 72 cents a share. Analysts had expected 79 cents a share, according to Factset Research.
The company also lowered its adjusted earnings forecast for its full fiscal year to a range of $2.90 to $3.20 a share from the $3.34 that analysts had forecast.
Jacobs said its fiscal second-quarter revenue slipped 2.3% to $2.9 billion, but its order backlog was $18.9 billion as of March 27, up 2.5% from a year earlier.
With 66,000 employees and revenue of $12.7 billion in fiscal 2014, Jacobs is one of the largest companies based in Southern California.