KBR Earnings Preview

Motley Fool Staff
Updated

KBR (NYS: KBR) will try to beat its earnings estimates for the fourth consecutive quarter. The company will unveil its latest earnings tomorrow. 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 12 of 16 rating it a buy and the remainder rating it a hold. Analysts like KBR better than competitor Jacobs Engineering Group overall. KBR's rating hasn't changed over the past three months.

  • Revenue forecasts: On average, analysts predict $2.4 billion in revenue this quarter. That would represent a decline of 10.1% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.53 per share. Estimates range from $0.49 to $0.62.

What our community says
CAPS All-Stars are solidly backing the stock with 96.8% assigning it an outperform rating. The community at large concurs with the All-Stars with 94.7% giving it a rating of outperform. Fools are gung-ho about KBR and haven't been shy with their opinions lately, logging 194 posts in the past 30 days. 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 56.5%. Revenue has fallen for the past three quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

6.3%

7.2%

8.0%

7.5%

Operating Margin

6.3%

6.4%

6.7%

7.6%

Net Margin

4.6%

3.4%

4.0%

4.1%

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At the time thisarticle was published

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