Jacobs Engineering shares fall after 4Q results
Shares of Jacobs Engineering Group Inc. fell Tuesday, a day after its fiscal fourth-quarter earnings and guidance missed Wall Street expectations.
THE SPARK: The Pasadena, Calif.-based engineering company said late Monday that it earned $110.8 million, or 84 cents per share, in the quarter ended Sept. 27, up 3 percent from $107.4 million, or 83 cents per share, last year. That's below the 87 cents analysts were expecting, according to FactSet.
The lower range of its fiscal year 2014 earnings-per-share guidance of $3.35 to $3.90 also was short of the average analyst estimate of $3.76 per share.
THE BIG PICTURE: Jacobs Engineering provides technical and construction services to a wide variety of businesses including those in the aerospace, automotive, energy and pharmaceuticals industries.
The company said its guidance includes the anticipated contribution from its purchase of Sinclair Knight Merz, or SKM, a $1.2 billion transaction which is scheduled to close next month.
William Blair analyst Chase Jacobson noted that the company's backlog at quarter-end of $17.2 billion was "essentially flat" on a sequential basis.
"Headwinds from publicly funded markets should not come as a major surprise, as these have been well communicated throughout earnings season; however, fiscal 2014 consensus earnings per share could still trend lower, despite anticipated contribution from the SKM deal," the analyst wrote in a note.
SHARE ACTION: Down $3.74, or 5.9 percent, to $60.01 in afternoon trading Tuesday. But its shares are up 51 percent from a year ago.