Analyst Note| Krzysztof Smalec, CFA |
We are raising our fair value estimate for Jacobs Engineering to $136 from $124 after the company reported solid fiscal second-quarter results and raised its guidance for full-year 2021. The company posted fiscal second-quarter revenue of $3,548 million and adjusted EPS of $1.75 (including $0.09 of accretion from PA Consulting), both above FactSet consensus estimates of $3,490 million and $1.36. GAAP EPS from continuing operations was $0.00 due to one-time charges related to the PA Consulting transaction. The fair value increase reflects our more optimistic revenue growth and operating margin assumptions as well as time value of money.