- Jacobs Engineering (J +2.8%) reports FQ2 revenue of $3.5B grew 3.5% Y/Y; beats consensus by $70M and net revenue up 6.7% Y/Y.
- ESG-Related growth opportunities accelerating across all lines of business.
- Strong cash flow from operations and free cash flow of $238M and $209M, respectively.
- EPS from continuing operations of $0.00; reflects portion of PA investment treated as compensation per GAAP; misses consensus by $1.24.
- Adjusted EPS from continuing operations of $1.66, up 19% Y/Y, including 9 cents accretion from PA; beats consensus by $0.27
- Backlog increased $2.3B-25.6B, up 10% Y/Y.
- Expects robust FY22 growth driven by national security priorities and global infrastructure modernization.
- Company closed its strategic investment in PA Consulting on March 2, 2021.
- Of the total price consideration, $267M will now be reflected in FQ3 as cash flow from operations upon payment given the compensation accounting treatment noted above.
- Raises financial outlook: Company now expects fiscal 2021 adjusted EBITDA of $1.2B-1.27B and adjusted EPS of $6.00-6.30 from its previous outlook of adjusted EBITDA of $1,075M-1,155M and adjusted EPS of $5.30-6.00.
- SA PRO Editors: 'Jacobs Engineering: Transformative Company With Plenty Of Upside Potential'
- Previously: Jacobs Engineering EPS beats by $0.27, beats on revenue, raises FY2021 outlook (May 10)