Jacobs Engineering Group Inc. (NYSE:JEC), Pasadena (California) based construction company; posted in-line third-quarter (FY 2017) results, this Tuesday. The company released $0.79 earnings per share (EPS) for the quarter, meeting street’s consensus estimates of $0.79. In the quarter, the firm made revenue of $2.52 billion (against analysts’ expectations of $2.63 billion) with net margin of 2.05% and return on equity of 8.56%. However, company’s revenue was down 6.6% compared to the same quarter last year. JEC has set its FY17 guidance to $3.00-3.15 EPS.
Revenues of Petroleum & Chemicals segment came in at $600.5 million, dropping 21.7% year over year. Aerospace & Technology segment’s quarterly sales also plunged 12.3% to $585.4 million. Industrial segment’s revenues were down 3.5% year over year to $681.6 million. Buildings & Infrastructure segments’ sales climbed 16.9% year over year $647.3 million.
Robert W. Baird maintained a “neutral” rating and set a $64.00 target price on JEC shares. Citigroup Inc. downgraded JEC from a “buy” rating to a “neutral” rating and issued a $62.00 target price for the company. Zacks Investment Research advised investors to “Buy” from “Hold” where as Credit Suisse Group confirmed a “buy” rating and issued a $69.00 target price.
Recently company agreed to acquire its rival CH2M HILL Companies Ltd. (CH2M) for $2.85 billion in order to become a premier $15-billion global solutions provider. The deal is estimated to increase company’s inorganic growth trajectory and reinforce its industry competency over the long term. The transaction, which is expected to close in Jacobs’ fiscal 2018 first quarter.
Jacobs Engineering Group Inc is a technical professional services company which provides a range of technical, professional and construction services to industrial, commercial and governmental clients. The firm’s key services include Project Services; Process, Scientific, and Systems Consulting Services; Construction Services, and Operations and Maintenance Services.