Jacobs Gears Up to Report Q1 Earnings: Things to Keep in Mind

Jacobs Solutions, Inc. J is slated to report first-quarter fiscal 2025 results on Feb. 4, before market open.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 0.7%, and revenues missed the same by 1.1%. On a year-over-year basis, its adjusted earnings grew 28%, and revenues inched up 4.4%.The leading provider of professional, technical and construction services’ earnings have topped the consensus mark in all the last four quarters, with the average being 9.9%.Jacobs Solutions Inc. Price and EPS Surprise Jacobs Solutions Inc. price-eps-surprise | Jacobs Solutions Inc. QuoteHow Are Estimates Placed for Jacobs Stock?For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at $1.29 in the past 60 days. The consensus mark for revenues is pegged at $2.93 billion.Factors to Note for Jacobs' Q1Jacobs’ revenues in the first quarter of fiscal 2025 are expected to have reflected increasing investments in water infrastructure projects, pharmaceutical and semiconductor sectors, critical infrastructure, energy transition and transportation projects in Europe and Australia.Jacobs has undergone a strategic transformation, shifting toward a more streamlined, high-value, and high-margin portfolio. A critical milestone in this shift was the separation of its Critical Mission Solutions and Cyber & Intelligence businesses, culminating in Amentum’s listing on the NYSE. This move has allowed Jacobs to sharpen its focus on three core end markets: Water & Environmental, Life Sciences & Advanced Manufacturing, and Critical Infrastructure. This restructuring allows Jacobs to concentrate on higher-margin businesses, reinforcing its ability to deliver long-term shareholder value, which is likely to have contributed to the company’s quarterly performance.Additionally, the fiscal first quarter is anticipated to have demonstrated the positive effects of a backlog with higher margins, a dedication to efficiency through digital and technological advancements, and solid project execution, all playing roles in driving overall growth.However, some short-term headwinds, such as government funding delays, restructuring costs and macroeconomic uncertainties, may impact the company’s quarterly performance.For the fiscal first quarter, Jacobs expects revenues, adjusted EBITDA margin, and earnings to be sequentially lower than the fourth quarter of fiscal 2024 due to normal seasonality. However, financial performance is projected to improve as the year progresses, with sequential growth expected in each quarter. The company's strategic move away from being solely an engineering and construction firm toward a globally-focused technology solutions provider is likely to be reflected in the upcoming financial report.What the Zacks Model Says for JacobsOur proven model does not conclusively predict an earnings beat for Jacobs this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here.Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Jacobs currently carries a Zacks Rank #3.Stocks With Favorable CombinationHere are some other companies in the Zacks Business Services sector, which, according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.AppLovin Corporation APP has an Earnings ESP of +1.12% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.APP reported better-than-expected earnings in each of the last four quarters, the average surprise being 26.2%. The company’s earnings for the fourth quarter of 2024 are expected to increase 161.2%.Coherent Corp. COHR currently has an Earnings ESP of +7.48% and a Zacks Rank of 2.COHR’s earnings for the second quarter of fiscal 2025 are expected to increase 94.4%. The company reported better-than-expected earnings in each of the last four quarters, the average surprise being 25.5%.S&P Global Inc. SPGI currently has an Earnings ESP of +0.83% and a Zacks Rank of 2.SPGI’s earnings for the fourth quarter of 2024 are expected to increase 9%. The company reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 6.3%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coherent Corp. (COHR): Free Stock Analysis Report AppLovin Corporation (APP): Free Stock Analysis Report S&P Global Inc. (SPGI): Free Stock Analysis Report Jacobs Solutions Inc. (J): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks