Jacobs Solutions Hits Some Bumps Despite Q2 Beat, Narrows Outlook
Jacobs Solutions Inc. Financial Performance:
- Reported second-quarter FY24 results with revenue growth of 4.7% Y/Y to $4.27 billion, beating consensus.
- Adjusted EPS was $1.91, exceeding the consensus of $1.85.
- Backlog increased by 1.5% Y/Y to $29.4 billion, with gross profit in backlog up by 3.7% Y/Y.
- Cash flow from operations for the six months of FY24 was $376 million, with share buybacks worth $95 million in the quarter.
- CEO Bob Pragada emphasized commitment to business separation, cost optimization, growth, and shareholder value creation.
Financial Outlook and Business Separation:
- Jacobs narrowed adjusted EBITDA outlook to $1.540-$1.585 billion and adjusted EPS outlook to $7.80-$8.10 for FY24.
- In a deal with Amentum, Jacobs will separate and combine its CMS and Divergent Solutions businesses in a tax-efficient transaction.
- The separated businesses will operate as units of Jacobs post-closure, expected in the second half of FY24 Q4.
Investor Information:
- Investors can access J shares through Tidal ETF Trust Newday Ocean Health ETF (AHOY) and Valued Advisers Trust Kovitz Core Equity ETF (EQTY).
Stock Price Movement:
- J shares were trading lower by 3.29% at $144.18 following the latest updates.
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Author's Perspective: The opinions expressed in the article are solely those of the author and do not necessarily represent Nasdaq, Inc.
