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KBR Earnings Preview

KBR (NYSE: KBR  ) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, Oct. 27. 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 nine of 11 rating it a buy and the remainder rating it a hold. Analysts like KBR better than competitor Jacobs Engineering Group overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $2.45 billion in revenue this quarter. That would represent a decline of 0.4% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.68 per share. Estimates range from $0.56 to $0.79.

What our community says:
CAPS All-Stars are solidly behind the stock, with 96.2% granting it an "outperform" rating. The community at large backs the All-Stars, with 94.9% giving it a rating of "outperform." Fools are gung-ho about KBR and haven't been shy with their opinions lately, logging 198 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 40.6% over the past five quarters. 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 Q2 Q1 Q4 Q3
Gross Margin 7.7% 6.3% 7.2% 8.0%
Operating Margin 7.0% 6.3% 6.4% 6.7%
Net Margin 4.1% 4.6% 3.4% 4.0%
For all our KBR-specific analysis, including earnings and beyond, add KBR to My Watchlist.

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DocumentId: 1575631, ~/Articles/ArticleHandler.aspx, 5/26/2012 2:25:20 PM

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Related Tickers

5/25/2012 4:02 PM
KBR $26.16 Down -0.29 -1.10%
KBR, Inc. CAPS Rating: ****

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