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Here's What Investors Must Know Ahead of Jacobs' Q3 Earnings Release
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Key Takeaways
{\"0\":\"Jacobs is expected to report Q3 EPS of $1.56, down 20.4% YOY, on $3.07B in revenues, down 27.6%.\",\"1\":\"Global macro headwinds, FX impact and inflation may weigh on the Infrastructure and PA Consulting segments.\",\"2\":\"Cost streamlining initiatives could partially offset margin pressures from labor and IT investments.\"}
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 1.4% while the revenues missed the same by 3.6%. On a year-over-year basis, both metrics grew 22.2% and 2.2%, respectively.
The leading provider of professional, technical and construction services’ earnings have topped the consensus mark in the last four quarters, the average being 1.4%.
How are Estimates Placed for Jacobs Stock?
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at $1.56 over the past 30 days. The estimated figure indicates a 20.4% year-over-year decline from $1.96.
The consensus mark for revenues is pegged at $3.07 billion, indicating a decline of 27.6% from the year-ago figure of $4.23 billion.
Factors to Note Ahead of Jacobs' Q3 Results
Jacobs’ revenues in the third quarter of fiscal 2025 are expected to have been hurt due to unfavorable foreign currency impact and the ongoing global macro uncertainties. Although rising demand across sectors like energy, water and transport is likely to have been uplifting the company’s backlog and revenue visibility in the long term, the current market challenges are pressuring the near-term prospects to a great extent.
The headwinds are likely to have been unfavorable for the revenues from the two reportable segments, Infrastructure & Advanced Facilities (which accounted for 89.4% of the second quarter of fiscal 2025 revenues) and PA Consulting (which accounted for 10.6% of the second quarter of fiscal 2025 revenues), during the fiscal third quarter.
However, some other short-term headwinds, such as government funding delays and restructuring costs, are likely to have impacted the company’s quarterly performance. Ongoing inflationary pressures on labor, materials and other related expenses, along with continued investment in IT, are likely to have impacted its bottom line in the to-be-reported quarter.
Nonetheless, the company's efforts to streamline operations and improve cost structure are likely to have aided its margins in the second quarter.
What the Zacks Model Says for Jacobs
Our proven model does not conclusively predict an earnings beat for Jacobs this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here.
Earnings ESP of Jacobs: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
J’s Zacks Rank: Jacobs currently carries a Zacks Rank #4 (Sell).
Here are some companies in the Zacks Business Services sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.
Coherent Corp. (COHR - Free Report) has an Earnings ESP of +4.53% and a Zacks Rank of 1.
Coherent’s earnings beat estimates in each of the last four quarters, the average surprise being 15.2%. Coherent’s earnings for the second quarter of 2025 are expected to increase 52.5%.
Bitfarms Ltd. (BITF - Free Report) currently has an Earnings ESP of +25.00% and a Zacks Rank of 2.
Bitfarms’ earnings beat estimates in three of the last four quarters and met on the remaining one occasion, the average surprise being 59.1%. Bitfarms’ earnings for the second quarter of 2025 are expected to grow 85.7%.
AppLovin Corporation (APP - Free Report) currently has an Earnings ESP of +2.59% and a Zacks Rank of 3.
AppLovin’s earnings beat estimates in all of the last four quarters, the average surprise being 22.9%. AppLovin’s earnings for the second quarter of 2025 are expected to increase 123.6%.
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Here's What Investors Must Know Ahead of Jacobs' Q3 Earnings Release
Key Takeaways
Jacobs Solutions, Inc. (J - Free Report) is slated to report third-quarter fiscal 2025 results on Aug. 5, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 1.4% while the revenues missed the same by 3.6%. On a year-over-year basis, both metrics grew 22.2% and 2.2%, respectively.
The leading provider of professional, technical and construction services’ earnings have topped the consensus mark in the last four quarters, the average being 1.4%.
How are Estimates Placed for Jacobs Stock?
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at $1.56 over the past 30 days. The estimated figure indicates a 20.4% year-over-year decline from $1.96.
Jacobs Solutions Inc. Price and EPS Surprise
Jacobs Solutions Inc. price-eps-surprise | Jacobs Solutions Inc. Quote
The consensus mark for revenues is pegged at $3.07 billion, indicating a decline of 27.6% from the year-ago figure of $4.23 billion.
Factors to Note Ahead of Jacobs' Q3 Results
Jacobs’ revenues in the third quarter of fiscal 2025 are expected to have been hurt due to unfavorable foreign currency impact and the ongoing global macro uncertainties. Although rising demand across sectors like energy, water and transport is likely to have been uplifting the company’s backlog and revenue visibility in the long term, the current market challenges are pressuring the near-term prospects to a great extent.
The headwinds are likely to have been unfavorable for the revenues from the two reportable segments, Infrastructure & Advanced Facilities (which accounted for 89.4% of the second quarter of fiscal 2025 revenues) and PA Consulting (which accounted for 10.6% of the second quarter of fiscal 2025 revenues), during the fiscal third quarter.
However, some other short-term headwinds, such as government funding delays and restructuring costs, are likely to have impacted the company’s quarterly performance. Ongoing inflationary pressures on labor, materials and other related expenses, along with continued investment in IT, are likely to have impacted its bottom line in the to-be-reported quarter.
Nonetheless, the company's efforts to streamline operations and improve cost structure are likely to have aided its margins in the second quarter.
What the Zacks Model Says for Jacobs
Our proven model does not conclusively predict an earnings beat for Jacobs this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here.
Earnings ESP of Jacobs: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
J’s Zacks Rank: Jacobs currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are some companies in the Zacks Business Services sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.
Coherent Corp. (COHR - Free Report) has an Earnings ESP of +4.53% and a Zacks Rank of 1.
Coherent’s earnings beat estimates in each of the last four quarters, the average surprise being 15.2%. Coherent’s earnings for the second quarter of 2025 are expected to increase 52.5%.
Bitfarms Ltd. (BITF - Free Report) currently has an Earnings ESP of +25.00% and a Zacks Rank of 2.
Bitfarms’ earnings beat estimates in three of the last four quarters and met on the remaining one occasion, the average surprise being 59.1%. Bitfarms’ earnings for the second quarter of 2025 are expected to grow 85.7%.
AppLovin Corporation (APP - Free Report) currently has an Earnings ESP of +2.59% and a Zacks Rank of 3.
AppLovin’s earnings beat estimates in all of the last four quarters, the average surprise being 22.9%. AppLovin’s earnings for the second quarter of 2025 are expected to increase 123.6%.