Jacobs Solutions Q3: Bottomline Miss, Revenue Beat, Reaffirmed FY23 Outlook & More

Jacobs Solutions Inc J reported a Q3 FY23 revenue growth of 9.4% Y/Y to $4.19 billion, beating the consensus of $4.05 billion.

Adjusted EPS from continuing operations declined by 2.2% Y/Y to $1.82, missing the consensus of $1.84.

Revenues by segments: Critical Mission Solutions $1.19 billion (vs. $1.11 billion a year ago), People & Places Solutions $2.47 billion (vs. $2.22 billion the prior year), Divergent Solutions $239.3 million (vs. $217.9 million a year ago) and PA Consulting $286.9 million (vs. $277.6 million in Q2 2022).

At the end of the quarter, the company's backlog increased by 2.9% Y/Y to $28.9 billion.

Adjusted operating profit rose 10% Y/Y to $361 million.

Operating cash flow of $321.1 million versus an outflow of $(249.1) million a year ago.

As of June 30, 2023, the company held cash and cash equivalents of $1.09 billion.

The company repurchased shares worth $125.0 million in Q3.

FY23 Outlook: Jacobs Solutions reaffirmed adjusted EBITDA outlook at $1.42 billion-$1.47 billion and adjusted EPS of $7.25-$7.45 vs. consensus of $7.35.

Also Read: Jacobs Pens Deal With Fortescue Future Industries For Decarbonization Projects

Price Action: J shares are trading higher by 2.26% at $131.55 on the last check Tuesday.