Earnings Summary for Jacobs Solutions Inc for Q3 2024
Intellectia.AI Updated: 2024-08-06
Earnings Summary for Jacobs Solutions Inc. for Q3 2024
Jacobs Solutions Inc. has reported its financial results for the third quarter ending June 28, 2024.
Key Financial Metrics:
| Metrics | Q3 2024 | Q3 2023 | YoY Change | Wall Street Consensus | vs. Estimates |
|---|---|---|---|---|---|
| Total Revenue | $4.23 Billion | $4.19 Billion | +1.1% | $3.99 Billion | +6.0% |
| Earnings Per Share (EPS) | $1.17 | $1.29 | -9.3% | $1.96 | -40.3% |
Interpretation: Jacobs Solutions posted a slight year-over-year increase in revenue, reflecting stable performance across its operations. However, the earnings per share fell short compared to both the previous year and Wall Street Consensus estimates, reflecting higher restructuring costs associated with their Separation Transaction and related restructurings.
Revenue Performance By Segment:
| Segment | Q3 2024 Revenue | Comparison to Q3 2023 | Previous Guidance | Interpretation |
|---|---|---|---|---|
| People & Places Solutions | $1.68 Billion | Significant increase | Met/Exceeded | Strong performance in Federal & Environmental Solutions, Energy & Power, and Advanced Facilities operations contributed positively. |
| Critical Mission Solutions | $1.28 Billion | Consistent | Matched | Revenue stability indicates a balanced portfolio, with continued demand in core markets. |
| Divergent Solutions | $0.57 Billion | Moderate increase | Matched | Reflects continued growth in cyber, analytics, and secure solutions offerings. |
| PA Consulting | $0.70 Billion | Increased | Met/Exceeded | Ongoing engagements in innovation and transformation consultancy reflect positively. |
Dividends or Share Repurchase Program:
Jacobs declared a quarterly dividend of $0.29 per share to be paid on August 23, 2024. Additionally, the company executed share repurchases amounting to $346.4 million under its 2023 Repurchase Authorization during the nine months ended June 28, 2024.
Stock Price Movement:
Following the earnings release, the stock price of Jacobs Solutions decreased by approximately -1.48%.
In summary, while Jacobs Solutions Inc. reported steady revenue growth across most of its segments, the overall earnings were impacted by substantial restructuring costs related to its strategic separation initiatives. The company continues to maintain a strong cash position, declared regular dividends, and executed significant share repurchases.
