Analyst Note| Krzysztof Smalec, CFA |
KBR posted solid first-quarter results, as its revenue of $1,460 million and adjusted EPS of $0.48 were both in line with FactSet consensus estimates. There were no major surprises in KBR’s earnings release, as the firm's revenue, EBITDA margin, and adjusted EPS were all roughly in line with management’s previous full-year guidance. The company raised its quarterly dividend by 10%, from $0.10 per share to $0.11. After reviewing our valuation assumptions for KBR, we’ve bumped up our fair value estimate to $38 from $36, which reflects the firm’s continued solid execution, our more optimistic long-term growth assumptions, and time value of money.