On November 14, 2011, Jacobs Engineering Group (JEC) reported its financial results for the fourth quarter and financial 2011 with earnings per diluted share of 74 cents in the quarter, up from 61 cents reported in the year-ago quarter, based on economic conditions and sales success. Results were marginally above the Zacks Consensus Estimate of 73 cents.
For FY11, the company reported earnings per diluted share of $2.60, up from $1.96 reported in fiscal 2010.
Total revenue jumped 16.2% year over year to $2,723.3 million, below the Zacks Consensus Estimate of $2,768.0 million.
Revenues from Technical Professional Services (58.6% of total revenue) increased to $1,596.6 million from $1,268.4 million in the fourth quarter of fiscal 2010 while revenues from Field Services (41.4% of total revenue) increased 4.8% to $1,126.7 million.
For FY11, the company reported total revenue of $10,381.7 million in the quarter, up from $9,915.5 million in fiscal 2010
In the third quarter, operating profit improved to $147.9 million from $119.5 million in the year-ago quarter. Direct costs of contracts, a major expenditure for Jacobs, as a percentage of revenue, decreased marginally to 84.3% from 85.1% in the prior-year quarter. However, selling, general and administrative (SG&A) expenses, as a percentage of revenue, rose 10.2% from 9.8% in the prior-year quarter.
For full-year 2011, operating profit improved to $518.9 million from $400.1 million in the year-ago quarter.
At the end of the fourth quarter, backlog was approximately $14.3 billion, up from $13.2 billion at the end of the third quarter of 2010.
Jacobs’ cash and cash equivalents, exiting the fourth quarter, was approximately $905.6 million, down from $938.8 million year over year while total debt increased to $568.1 million from $79.9 million in the previous year quarter.
Outlook: Jacobs raised its earnings guidance for fiscal year 2012 within a range of $2.80 to $3.20 per share based on steady backlog and improved delivery prospects.
Jacobs Engineering Group Inc. is one of the world's largest engineering and construction companies providing services to a variety of industrial, commercial and government clients across a global network. The company directly competes with its peers, such as Fluor Corporation (FLR) and Foster Wheeler AG (FWLT).
We currently maintain a long-term Neutral recommendation on the stock. Jacobs has a Zacks #3 Rank, which translates into a short-termHold rating (1-3 months).
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