DALLAS - Jacobs Solutions Inc. (NYSE:J) reported a modest uptick in its share price today after announcing second-quarter earnings that surpassed analyst expectations.
The company's adjusted EPS came in at $1.91, a $0.06 improvement over the $1.85 consensus. However, quarterly revenue fell short at $4.27 billion, missing the anticipated $4.33 billion mark.
Despite the revenue shortfall, the company's earnings beat and narrowed full-year guidance provided a slight boost to investor confidence, reflected in a 0.3% increase in stock price. Jacobs has adjusted its fiscal year 2024 EPS outlook to a range of $7.80 to $8.10, aligning closely with the consensus estimate of $8.09.
Jacobs' CEO, Bob Pragada, expressed satisfaction with the company's performance, particularly highlighting the People & Places Solutions segment, which saw a 7.5% YoY revenue increase.
"We continue to diligently execute on our commitments, driving sustainable growth and creating value for our shareholders, clients, and communities," Pragada stated.
The company's financial health was further evidenced by a share repurchase of $95 million during the quarter. Interim CFO Kevin Berryman emphasized the team's dedication to exceeding strategic and financial goals, underscoring a commitment to high-value solutions and improved margins.
Looking ahead, Jacobs has narrowed its fiscal 2024 adjusted EBITDA forecast to a range between $1,540 million and $1,585 million, anticipating a 9% to 10% YoY increase at the midpoints.
This guidance update comes as the company makes steady progress toward the separation of its CMS and Cyber & Intelligence business, which is expected to close in the second half of the fourth quarter of fiscal 2024.
Investors and analysts will continue to monitor Jacobs' strategic moves and financial performance as the company navigates through its transformation initiatives and capitalizes on its market position.
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