Jacobs beats Q4 profit estimates on higher infrastructure spending

Jacobs Solutions

21/11/2023 12:46

Nov 21 (Reuters) - Jacobs Solutions  J.N  on Tuesday
reported a fourth-quarter profit that beat analysts' estimates,
helped by strong demand for its smart city business. 
    The White House has been ramping up spending on
infrastructure after allocating $1 trillion to refurbish roads,
bridges and airports and reduce emissions, benefiting
engineering and planning service providers like Jacobs.
    Its People & Places Solutions segment, which provides
engineering and architecture for smart cities, energy
transition, climate control and water utilities, was up 11.7%
year-on-year. 
    The Dallas-Texas based company reported an adjusted profit
of $1.96 per share, compared with analysts estimates of $1.87
per share for the quarter ended Sept. 29. 
    Late Monday, the company also said it plans to spin off its
Critical Mission Solutions (CMS) business to rival contractor
Amentum Services in a deal worth $1 billion.
    Jacobs joins a raft of U.S. manufacturing companies,
including General Electric Co  GE.N , that have moved to cut
costs and simplify businesses over the past two years.
    The company expects adjusted profit for fiscal 2024 between
$7.70 and $8.20 per share, compared with Wall Street estimates
of $8.40 per share as per LSEG data
     Total quarterly revenue was about $4.28 billion, up 10.5%
from a year earlier. Analysts, on average, were expecting
revenue of $4.13 billion in the fourth quarter, as per LSEG
data.  

 (Reporting by Aishwarya Jain; Editing by Shailesh Kuber)
 ((Aishwarya.Jain@thomsonreuters.com))