Jacobs Solutions Inc. (NYSE:J) shares are trading lower after it reported second-quarter FY24 results.

Revenue grew 4.7% Y/Y to $4.27 billion, beating the consensus of $3.98 billion. Adjusted EPS totaled $1.91, beating the consensus of $1.85.

The backlog in the quarter under review was $29.4 billion, up 1.5% Y/Y. Gross profit in backlog was up 3.7% Y/Y.

The company registered cash flow from operations of $376 million in the six months of FY24. The company bought back shares worth $95 million in the quarter.

Jacobs’ CEO Bob Pragada said, “We continue to diligently execute on our commitments in relation to the separation of our CMS and Cyber & Intelligence business…As we move into the second half of our fiscal year, we remain focused on streamlining our business with a keen focus on cost optimization, driving sustainable growth and creating value for our shareholders, clients and communities.”

Cash and cash equivalents at the end of the period totaled $1.03 billion.

FY24 Outlook: Jacobs Solutions narrowed its outlook for adjusted EBITDA to $1.540 billion-$1.585 billion (from $1.53 billion-$1.60 billion) and adjusted EPS outlook to  $7.80 to $8.10 (from $7.70-$8.20 prior) vs. the consensus of $8.08.

On November 20, 2023, Jacobs disclosed that it had inked a definitive deal to separate and combine its CMS and portions of the Divergent Solutions businesses with Amentum in a tax-efficient Reverse Morris Trust transaction. Post closure, the separated businesses will operate as business units of Jacobs. The company expects the transaction to close in the second half of the fourth quarter of fiscal year 2024.

Investors can gain exposure to the stock via Tidal ETF Trust Newday Ocean Health ETF (NYSE:AHOY) and Valued Advisers Trust Kovitz Core Equity ETF (NYSE:EQTY).

Price Action: J shares are trading lower by 3.29% to $144.18 at the last check Tuesday.