Jacobs Engineering (JEC) Tops Q4 EPS by 18c, Revenues Beat

Jacobs Engineering (NYSE: JEC) reported Q4 EPS of $1.48, $0.18 better than the analyst estimate of $1.30. Revenue for the quarter came in at $3.4 billion versus the consensus estimate of $3.2 billion.

Q4 Financial Highlights:

• Q4 2019 revenue of $3.4 billion1 grew 13% year-over-year; up 15% on a net revenue basis
• Q4 2019 EPS1 of $0.16 and adjusted EPS of $1.48, up 29% on an adjusted basis year-over-year
• Executed accelerated share repurchase of $250 million during Q4 to be completed in December 2019
• Paid $390 million in cash taxes reflected in cash flow from operations related to the $935 million gain on the Q3 close of $3.4 billion sale of Energy, Chemicals and Resources (ECR) business

"Our team has demonstrated strong execution by exceeding our three-year revenue and operating profit guidance that was established at our inaugural investor day in 2016. Our transformed portfolio is well aligned to major secular growth trends such as environmental resiliency, IT/OT convergence and national security. Today we embrace a future of infinite possibilities with a new brand that reflects who we are and where we are going. We are adopting a new tagline - Challenging today. Reinventing tomorrow. - to capture the shared passion, pride and drive of our people as we work with our clients and partners to solve some of the world's biggest challenges," said Chair and CEO Steve Demetriou. "And as we do so, our values continue to drive our behaviors, relationships and outcomes: We do things right. We challenge the accepted. We aim higher. We live inclusion."

Jacobs' CFO, Kevin Berryman, added, "It's clear the strategic actions we have taken are resulting in a high-performance culture with strong execution discipline. This is demonstrated by our fiscal 2019 financial results, including solid operating profit growth and achieving results at the high end of our original guidance, leading to double-digit adjusted EBITDA growth. During the fourth quarter, we opportunistically initiated a $250 million accelerated share repurchase program, culminating in more than $850 million in fiscal 2019 buy-backs. We are initiating a fiscal 2020 outlook of $1.05 billion to $1.15 billion in adjusted EBITDA2 and are off to a strong start in achieving our 2021 revenue and profitability targets."

For earnings history and earnings-related data on Jacobs Engineering (JEC) click here.

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