Jacobs Tempers Outlook Despite Earnings Growth

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Jacobs Engineering Group Inc. shares fell 11 percent Tuesday after the construction services company reported a higher first quarter net income, but cut its outlook for the full year.

The Pasadena company late Monday reported net income of $109 million (88 cents per share), compared with $99.3 million (80 cents) a year ago. Revenue rose 12 percent to $2.98 billion. Analysts surveyed by Thomson Reuters on average expected per-share earnings of 88 cents on revenue of $3.1 billion.

Jacobs, which serves the oil and gas, energy, refining, and infrastructure industries said, said its backlog had risen 2.5 percent to $16.6 billion by the end of the quarter, But the company cut its 2009 earnings estimate to a range of $3.10 to $3.50 a share, down from a prior forecast of $3.55 to $3.90. Analysts are expecting average per-share earnings of $3.59.

“Going forward, we expect the markets to remain complex,” Chief Executive Craig L. Martin said in a statement. “Our public sector business remains strong, while the heavy process business is highly uncertain.”

Jacobs shares closed down $5.16 to $40.39 on the New York Stock Exchange.

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