Jacobs tops quarterly estimates on strong demand for professional services

Reuters
08/05
Jacobs tops quarterly estimates on strong demand for professional services

Aug 5 (Reuters) - Engineering services firm Jacobs Solutions J.N beat Wall Street estimates for third-quarter profit and revenue on Tuesday, boosted by steady demand in its Infrastructure and Advanced Facilities (I&AF) as well as PA Consulting segments.

Sustained demand for its professional services shielded the Dallas, Texas-based company from macroeconomic uncertainty amid an inflationary market and the ongoing global tariff war.

"This strong performance was fueled by higher revenue growth rates in both segments as well as disciplined cost control," CFO Venk Nathamuni said.

"We saw continued momentum in PA Consulting's business, with revenue increasing 15% year-on-year in the third quarter as a result of both higher public and private sector spending," CEO Bob Pragada said.

The larger I&AF segment, which focuses on the engineering, design and delivery of infrastructure projects, posted a 4% rise in revenue from a year ago, driven by demand from life sciences, data center, utilities and transportation end markets.

The company also narrowed its annual profit forecast to range between $6.00 and 6.10 per share, compared with its prior view of $5.85 to $6.20 per share.

Jacobs reported adjusted profit of $1.62 per share in the third quarter, above analysts' average estimate of $1.55, according to data compiled by LSEG.

Revenue for the quarter ended June 27 rose 5% to $3.03 billion, compared with estimates of $2.23 billion.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shreya Biswas)

((Aatreyee.Dasgupta@thomsonreuters.com;))

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