Technical services provider Jacobs Engineering Group Inc. (JEC) Monday reported a decline in profit for the first quarter, as revenues dropped year-over-year owing to the tough economic environment. Looking ahead, the company maintained its full year earnings forecast.
The Pasadena, California-based company reported first-quarter net earnings attributable to Jacobs of $72.44 million, or $0.58 per share, down from $116.35 million, or $0.94 per share, reported in the comparable period last year.
The company ceased using one of its offices in Houston, Texas, and entered into a sublease for the entire property. Results of the just concluded quarter included an after-tax charge of $5.8 million, or $0.04 per share, associated with this event.
On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.58 per share for the first quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter declined to $2.478 billion from $3.233 billion in the year-ago period. Analysts had a consensus revenue estimate of $2.48 billion for the quarter.
Revenue from Technical professional services declined in the quarter to $1.220 billion from $1.528 billion in the previous year, while Field services revenue dropped to $1.258 billion from last year's $1.704 billion.
Operating profit for the quarter declined to $113.48 million from $181.07 million in the prior year.
Commenting on the results, Jacobs President and CEO Craig Martin said, "Our results for the quarter reflect good execution by all of our offices, as well as continued focus on controlling costs. Although the economic environment continues to be difficult, our relationship-based business model remains a strength."
Looking ahead to fiscal 2010, the company maintained its guidance of earnings per share of $2.00-$2.60. Analysts estimate the company to report earnings of $2.15-$2.55 per share for the year with a consensus of $2.36 per share.
JEC closed Monday's regular trade at $39.95, up $0.29, on 2.59 million shares.
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