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Jacobs Engineering Raises 2021 Guidance as PA Consulting Stake Helps Lift Fiscal Second Quarter Above Street

05/10/2021 07:40

11:33 AM EDT, 05/10/2021 (MT Newswires) -- Jacobs Engineering (J) increased its guidance for 2021 as fiscal second-quarter results climbed year-on-year and beat Wall Street's expectations, getting a boost from the inclusion of PA Consulting after Jacobs took a stake earlier this year.

The construction services provider anticipates adjusted earnings of $6 to $6.30 a share in 2021, up from the previous outlook of $5.30 to $6. Analysts polled by Capital IQ are expecting an adjusted EPS of $6.09.

Dallas-based Jacobs Engineering on Monday posted adjusted EPS of $1.66 from continuing operations in the quarter ended April 2, compared with $1.39 a year ago. The Street projected another print of $1.39. Revenue rose to $3.55 billion from $3.43 billion. The Street forecast was $3.48 billion.

"Our strategic portfolio actions and disciplined execution are delivering continued strong financial results despite headwinds from the pandemic," said Chief Executive Steve Demetriou in a statement.

Jacobs in early March acquired a 65% stake in PA Consulting for an enterprise value of 1.83 billion pounds ($2.5 billion).

PA Consulting contributed revenue of $98 million to the company. Critical mission solutions segment revenue rose to $1.31 billion from $1.24 billion, while people and places solutions fell to $2.14 billion from $2.18 billion.

The backlog during the quarter climbed to $25.57 billion from $23.29 billion.

"As we look beyond fiscal 2021 we see multiple secular growth drivers and efficiency gains that are expected to support double-digit profit growth across Jacobs," said Chief Financial Officer Kevin Berryman.

Price: 145.08, Change: +5.13, Percent Change: +3.67