KBR Earnings Preview

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Investors never know what to expect for KBR (NYS: KBR) , as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings on Wednesday, April 25. KBR is a global engineering, construction, and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, and industrial sectors.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back KBR, with 10 of 14 rating it a buy and the remainder rating it a hold. Analysts like KBR better than competitor Jacobs Engineering Group overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $2.19 billion in revenue this quarter. That would represent a decline of 5.6% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.59 per share. Estimates range from $0.54 to $0.64.

What our community says:
CAPS All-Stars are solidly backing the stock, with 96% granting it an "outperform" rating. Most of the community concurs with the All-Stars, with 94.7% awarding it a rating of "outperform." Even with a robust four out of five stars, KBR's CAPS rating falls a little short of the community's upbeat outlook.


Management:
KBR's profit has risen year-over-year by an average of 57.2% over the past five quarters. Revenue has fallen for the past three quarters.

Now let's get some insight into how efficient management is at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. For four quarters in a row, the company has seen increases in net margins year-over-year. Net margins reflect what percentage of revenue becomes profit. Here is how KBR has been doing for the last four quarters: 

QuarterQ4Q3Q2Q1
Gross Margin6.6%7.4%7.7%6.3%
Operating Margin6.6%5.8%7.0%6.3%
Net Margin4.4%7.8%4.1%4.6%

For all our KBR-specific analysis, including earnings and beyond, add KBR to My Watchlist.

At the time this article was published Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.Earnings estimates provided by Zacks.

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