Will Q2 Earnings Hold A Surprise For Jacobs (JEC) Stock?
Zacks Investment Research | May 02, 2016 06:35AM ET
Premium technical services company Jacobs Engineering Group Inc. (NYSE:JEC) is scheduled to report second-quarter fiscal 2016 results before the opening bell on May 5.
For the last four quarters, the company generated a positive average earnings surprise of 10.13%.
Jacobs aims to improve its revenues and margins on the back of a unique customer-centric model.
Let’s see how things are shaping up prior to this announcement.
Factors to Influence Second-Quarter Results
Jacobs expects to report higher revenues in the to-be-reported quarter on the back of its diversified product portfolio and increased demand from Aerospace & Technology as well as PharmaBio markets. Moreover, the company anticipates its new business contracts to help in boosting sales in the quarter under review. At the same time, timely project delivery, specialized cost reduction plans along with lower overhead as well as real estate portfolio expenses are expected to widen margin in the fiscal second quarter.
However, reduced capital spending by major integrated oil and mining companies, unfavorable product pricing environment and strong U.S. dollar might weigh on the company’s revenues and earnings in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively state that Jacobs’ is likely to beat earnings in the quarter under review. That is because a stock needs to have both a positive Zacks Investment Research
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