Yahoo Finance Jacobs Solutions Inc. Just Missed EPS By 20%: Here's What Analysts Think Will Happen Next
It's shaping up to be a tough period for Jacobs Solutions Inc. (NYSE:J), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$4.2b, statutory earnings missed forecasts by 20%, coming in at just US$1.17 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Jacobs Solutions
Taking into account the latest results, the most recent consensus for Jacobs Solutions from ten analysts is for revenues of US$17.4b in 2025. If met, it would imply a satisfactory 2.5% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 59% to US$8.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$17.5b and earnings per share (EPS) of US$8.26 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$160, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Jacobs Solutions at US$176 per share, while the most bearish prices it at US$149. This is a very narrow spread of estimates, implying either that Jacobs Solutions is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Jacobs Solutions' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 6.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Jacobs Solutions.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Jacobs Solutions' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$160, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Jacobs Solutions. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Jacobs Solutions going out to 2026, and you can see them free on our platform here..
You can also view our analysis of Jacobs Solutions' balance sheet, and whether we think Jacobs Solutions is carrying too much debt, for free on our platform here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
