Jacobs Q3 adjusted EPS beats estimates, revenue up 5.1%

Overview

• Jacobs fiscal Q3 gross revenue up 5.1% y/y, adjusted net revenue up 7.0%

• Adjusted EPS of $1.62 beats analyst expectations, per LSEG data

• Co repurchased $101 mln of shares in Q3, backlog up 14% y/y

Outlook

• Jacobs raises FY25 adjusted EPS guidance to $6.00-$6.10

• Company narrows FY25 adjusted net revenue growth to 5.5%

• Jacobs expects FY25 adjusted EBITDA margin around 13.9%

• Company anticipates FCF conversion to exceed 100% of net income

Result Drivers

• INFRASTRUCTURE & ADVANCED FACILITIES - Growth driven by Life Sciences, Data Center, Energy & Power, Water, and Transportation sectors

• PA CONSULTING - Revenue increased 15% y/y due to higher public and private sector spending

• COST CONTROL - Strong performance fueled by disciplined cost management and capital deployment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Jacobs Solutions Inc is $152.00, about 7.9% above its August 4 closing price of $139.92

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nPn2Ps0Gva