KBR Earnings Preview

While KBR (NYSE: KBR  ) missed estimates last quarter, investors hope that it will bounce back and outpace Wall Street expectations this quarter. The company will unveil its latest earnings on Thursday, Feb. 23. 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 13 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 $2.45 billion in revenue this quarter. That would represent a rise of 4.7% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.64 per share. Estimates range from $0.60 to $0.68.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 96% giving it an "outperform" rating. The greater community agrees with the All-Stars, as 94.8% give 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 55% 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. Margins illustrate how efficiently a company captures portions of sales dollars. For four quarters in a row, the company has seen increases in net margin year over year. Net margin reflects what percentage of revenue becomes profit. Here are KBR's reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

7.4%

7.7%

6.3%

7.2%

Operating Margin

5.8%

7.0%

6.3%

6.4%

Net Margin

7.8%

4.1%

4.6%

3.4%

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

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Earnings estimates provided by Zacks.

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