Ja­cobs earn­ings miss fore­casts

Los Angeles Times - - BUSINESS - By James F. Peltz james.peltz@la­times.com

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.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.