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Texas-based Jacobs Solutions Inc. (J) provides a wide range of professional services, including consulting, technical, scientific, and project delivery, to both government and private sector clients. The company's current market cap stands at $18.3 billion and is set to announce its Q3 earnings for fiscal 2024 before the market opens on Tuesday, Aug. 6.
Ahead of the event, analysts expect Jacobs Solutions to report a profit of $1.95 per share, up 7.1% from $1.82 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in two of the last four quarters, while missing on two other occasions. Its EPS of $1.91 for the last reported quarter surpassed the consensus estimate by 3.8%.
Looking ahead, analysts expect Jacobs Solutions to report an EPS of $7.98 in fiscal 2024, up 10.8% from $7.20 in fiscal year 2023. Its fiscal 2025 EPS is projected to rise 10.3% annually to $8.80.
Shares of Jacobs Solutions have rallied 12.6% on a YTD basis, slightly trailing behind the broader S&P 500 Index's ($SPX) 14% gains but surpassing the S&P 500 Industrial Sector SPDR’s (XLI) 10.9% returns over the same time frame.
On July 16, Jacobs' stock rose 4.2% following the announcement of the filing of Form 10 for its plan to spin off its Critical Mission Solutions and parts of its Divergent Solutions business, including the Cyber & Intelligence segment. This move aims to create a leaner, higher-margin operating model by focusing on disciplined execution and project delivery excellence. The transaction, expected to close in the second half of the fiscal Q4, will result in a new publicly traded company, Amentum Holdings, Inc.
However, Jacobs' stock dropped 5% on May 7 after its Q2 earnings release. Despite exceeding both revenue and profit estimates, the company narrowed its fiscal 2024 guidance for adjusted EBITDA, projecting between $1.54 billion and $1.59 billion from the previous range of $1.53 billion and $1.6 billion, reflecting 9% growth at the midpoint. Similarly, the adjusted EPS guidance was revised, now expecting to range between $7.80 and $8.10 from the earlier range of $7.70 to $8.20, indicating 10% annual growth at the midpoint.
The current consensus opinion on Jacobs Solutions stock is “Moderate Buy” overall. Out of 15 analysts covering the stock, nine suggest a “Strong Buy,” one give a “Moderate Buy,” and five advise a “Hold.”
Furthermore, the average analyst price target for Jacobs Solutions is $159.64, indicating a potential upside of 9.2% from the current price levels.
On the date of publication, Kritika Sarmah 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.
