Dallas-based Jacobs Engineering Group recorded $3.2 billion in revenue for the quarter ended June 28, up $300 million from $2.9 billion during the same period a year ago.
Earnings from operations dropped from $113 million, or $0.79 per diluted share a year earlier, to $89 million, $0.65 per diluted share, for the fiscal third quarter, Jacobs said in a report issued before the market opened Monday. The company, a major contractor in the Department of Energy nuclear complex, attributed the lower earnings to higher restructuring and transaction costs.
Revenue for the Aerospace, Technology and Nuclear division, which includes NASA and Energy Department contracts, grew from $1.02 billion a year ago to $1.16 billion in the latest quarter. Operating profit for the business line rose from $69 million in the third quarter of fiscal 2018 to $76 million in the latest reporting period.
Company-wide, Jacobs increased its fiscal 2019 earnings outlook to the $4.75 to $5. This is up from the last quarterly guidance of $4.45 to $4.85.
The integration of former rival CH2M, which Jacobs purchased for $3.27 billion in December 2017, is going better than expected in terms of revenue and cost targets, according to Jacobs Chief Financial Officer Kevin Berryman. Integration should be completed by the end of the calendar year, he said.
“As we execute against our strategy, we are profitably winning a greater level of business in our existing sectors, while diversifying into the new high margin growth opportunities,” said Jacobs Chairman and CEO Steve Demetriou in the earnings press release.
A conference call between company executives and Wall Street analysts is scheduled for 11 a.m. Eastern time today.
