Will Q3 Earnings Hold A Surprise For Jacobs (JEC) Stock?
Zacks Investment Research | Aug 04, 2016 10:00PM ET
Premium technical services company Jacobs Engineering Group Inc. (NYSE:JEC) is scheduled to report third-quarter fiscal 2016 results before the opening bell on Aug 9.
In the last four quarters, the company delivered a positive average earnings surprise of 14.92%. Let’s see how things are shaping up prior to this announcement.
Factors to Play
Jacobs’ business exposure in diversified end markets is expected to reinforce financials in the fiscal third quarter.
The company’s strong Life Sciences’ business, which is backed by increased investments of biopharmaceutical majors, is expected to boost results in the upcoming quarter. Also, higher demand for phosphate fertilizers and strategic investments made in rail, aviation as well as infrastructure markets are expected to boost Jacobs’ revenues. Moreover, the company’s new contracts are likely to bear fruit in the upcoming quarter. Jacobs also believes that its tactical operational efficacy enhancement programs would help in widening margins in the fiscal third quarter.
However, persistence of several headwinds within the construction industry might hurt the company’s results. For instance, weak energy and mining market conditions are currently hindering growth for industrial or construction companies like Jacobs. This is because, low prices of oil and core metals have forced energy and mining companies to postpone, reduce or even cut investments. At the same time, a stronger U.S. currency might weigh on Jacobs’ foreign revenues and earnings in the to-be-reported quarter.
Share price of the company as of Aug 4, 2016 was $53.01 per share. We expect the release of fiscal third-quarter results to lead to stock price movement in the near term.
JACOBS ENGIN GR Price and EPS Surprise/h3
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.