Jacobs (NYSE: J) reported Q2 EPS of $1.39, $0.09 better than the analyst estimate of $1.30. Revenue for the quarter came in at $3.4 billion versus the consensus estimate of $3.39 billion.

Q2 2020 Highlights:

• Gross revenue of $3.4 billion1 grew 10.9% year-over-year; net revenue grew 7.5% pro forma
• EPS from continuing operations of $(0.92); results include $1.94 charge from mark to market impact of Worley stock
• Adjusted EPS from continuing operations of $1.39, including $0.07 in discrete tax benefits
• Backlog increased $2.6 billion to $23.3 billion, up 12.5% year-over-year and up 5% on a pro forma basis
• Cash flow from operations of $152 million, expect strong free cash flow for the balance of FY20
• Fiscal 2020 outlook to reflect COVID-19 impact, continues to represent year-over-year adjusted EBITDA growth

Jacobs' Chair and CEO Steve Demetriou commented, "During this time our focus has remained on keeping our people safe, ensuring business continuity and shifting our focus to aid in COVID-19 relief efforts by delivering solutions for our customers. Our cultural and portfolio transformation over the past several years provided the foundation for rapid, thoughtful decision-making at the beginning of the crisis – and allowed us to accelerate existing digital transformation plans to quickly shift our 55,000-person global workforce to remote working, demonstrating our resiliency and ability to navigate and weather this pandemic." Demetriou continued, "This has also enabled us to demonstrate new approaches to working on a global scale, maximizing our digital strategy and tools, to shape our 'new normal' – and reinforcing our global resilience and operational readiness. And perhaps most importantly, our behaviors during this crisis have strengthened our brand with our people and allowed us to retain top talent, setting us up for long-term success."

Jacobs' President and CFO Kevin Berryman added, "Our transformed portfolio has demonstrated strong financial flexibility in the face of one of the most abrupt shocks ever to the safety, health and economic well-being of the global community. Our long-term outlook for the business, despite the short term challenges associated with COVID-19, remains intact and we expect to generate strong free cash flow for the remainder of 2020. Furthermore, our financial flexibility affords us the opportunity to invest further in our people and our business as we look to improve our capabilities, productivity and efficiencies gained as a result of the crisis. We expect to emerge from the pandemic a more agile company that is positioned for growth in fiscal 2021 and beyond."

GUIDANCE:

Jacobs sees FY2020 EPS of $4.80-$5.30, versus the consensus of $5.21.

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