Nyse Order Imbalance 133922.0 Shares On Buy Side

Jacobs Solutions, Inc.’s J consortium with Mott MacDonald is selected by the West Yorkshire Combined Authority (The CA) as the Design Development Partner for the next phase of the West Yorkshire Mass Transit Programme.

The West Yorkshire Mass Transit Programme, one of the largest urban transit schemes in the U.K., aims to connect communities across the region with an advanced, high-capacity public transport system integrated with cycling, walking and rail.

Per the deal, the Jacobs - Mott MacDonald consortium will support The CA in further developing the first phases of the mass transit program, which includes Light Rapid Transit. The scope of work includes completing the existing concept design and providing all professional services and technical support to deliver the network's first phase before the end of this decade.

The CA anticipates the early construction stage will begin in 2028, in which phase one will include two lines serving Leeds and Bradford.

Post completion, The CA will continue to work with local authorities on future phases of a mass transit network to reach other parts of West Yorkshire.

Some Critical Infrastructure Projects Delivered by J

J has been winning some critical infrastructure projects of late. Jacobs, ranked as No. 2 in Transportation by Engineering News-Record, delivers world-class, mass transportation infrastructure solutions that connect people and communities.

Some of the major projects include the Elizabeth Line and the Transpennine Route Upgrade in the U.K., Klang Valley Mass Rapid Transit in Malaysia and the Metropolitan Transportation Authority's Grand Central Madison program in New York.

Jacobs’ Project Execution Solid

Jacobs' ability to execute projects efficiently has been pivotal in driving the company's performance in recent quarters. The continuous success in securing new contracts stands as evidence of this proficiency.

The solid project execution efforts are supported by its ongoing backlog growth. At the fiscal third-quarter end, the company reported a backlog of $30.6 billion, up from $28.9 billion a year ago. Book-to-bill was 1.29x at the third quarter of fiscal 2024-end. This reflects persistent solid demand for Jacobs' consulting services.

People & Places Solutions’ backlog was $19.28 billion, up from $17.5 billion reported in the year-ago period. The backlog at the Critical Mission Solutions segment was $8.45 billion, up from $8.1 billion a year ago.

J’s Stock Performance

Shares of this Zacks Rank #4 (Sell) company have gained 7.3% in the past year compared with the Zacks Technology Services industry’s 69.8% growth. The company’s prospects are marred by increased costs and higher restructuring & other charges.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

M-tron Industries, Inc. MPTI or MtronPTI, reported impressive results for the third quarter of 2024. The top and bottom lines surpassed the Zacks Consensus Estimate and increased from the year-ago period.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Shares of this designer and manufacturer of highly-engineered electronic components and solutions provider gained 4.2% in the after-hours trading session on Wednesday. Investors’ sentiments might have been boosted after MPTI noted that it anticipates a strong performance in the fourth quarter and expects to exceed its prior guidance for 2024.

Inside the MPTI Headline Numbers

M-tron Industries reported adjusted earnings per share (EPS) of 81 cents, which surpassed the consensus estimate of 54 cents by 50%. The reported figure increased 42.1% from 57 cents reported in the year-ago quarter. The upside was backed by continued strong defense program product and solution shipments.

M-tron Industries, Inc. Price, Consensus and EPS Surprise

M-tron Industries, Inc. price-consensus-eps-surprise-chart | M-tron Industries, Inc. Quote

Quarterly revenues of $13.2 million beat the consensus mark of $12.2 million by 8.3%. The reported figure increased 21.4% from the year-ago quarter’s $10.9 million, driven by solid defense-related orders.

MPTI’s Margins & Backlog Discussion

Gross margin was 47.8%, up 500 basis points (bps) from 42.8% a year ago. The increase was primarily due to higher revenues, improved production efficiencies from previous investments, and an improved product mix of higher-margin products.

Adjusted EBITDA was $3.3 million, which increased 41.3% from $23.4 million reported in the year-ago quarter backed by improved gross margins and continued cost containment efforts. Adjusted EBITDA margin was 25%, up 350 bps from 21.5% a year ago.

As of Sept. 30, the total backlog was $39.76 million compared with $47.83 million at 2023-end and $50.28 million a year ago. The decrease in backlog reflects the continued strategy and focus on securing large, long-duration program-centric businesses.

MtronPTI’s Financial Details

As of Sept. 30, 2024, MtronPTI had cash and cash equivalents of $8.49 million compared with $3.91 million at the end of 2023. Inventories were $9.55 million compared with $8.88 million at 2023-end.

Outlook

With the continued momentum in defense-related sales and the acceleration in production and shipments in the first half of 2024, MPTI expects to exceed the prior guidance for 2024.

The company expects revenues to be within $46-$48 million in 2024 from the previous year's number of $41.17 million. It expects adjusted EBITDA margin in the range of 19-21%.

Zacks Rank

MtronPTI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Fluor Corporation FLR reported third-quarter 2024 adjusted EPS of 51 cents, which missed the Zacks Consensus Estimate of 78 cents by 34.6%. The reported figure decreased 50% from an EPS of $1.02 a year ago.

Fluor’s quarterly revenues of $4.09 billion missed the consensus mark of $4.79 billion by 14.6%. The figure grew 3.3% from the year-ago quarter’s level of $3.96 billion.

KBR, Inc. KBR reported mixed third-quarter fiscal 2024 results, with adjusted earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

KBR’s quarterly results were backed by the benefits realized from the LinQuest acquisition and solid contributions from both the reportable businesses, given the increased demand trends for its services. Although high costs and expenses were headwinds, leverage from the increased top line aided the uptick.

Quanta Services Inc. PWR reported mixed results for the third quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same.

Quanta reported a strong quarter with double-digit growth across key financial metrics, a record backlog of $34 billion and $539.5 million in free cash flow. CEO Duke Austin attributed this growth to Quanta’s diverse portfolio, high demand, effective execution and an expanding market.

Zacks Investment Research

Jacobs Solutions, Inc. J is slated to report fourth-quarter fiscal 2024 results on Nov. 19, before market open.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 0.5%, and revenues missed the same by 3.5%. On a year-over-year basis, its adjusted earnings grew 11.4% and revenues inched up 1.1%.

The leading provider of professional, technical and construction services’ earnings topped the consensus mark in three of the last four quarters and missed on one occasion, with the average being 8.3%.

Jacobs Solutions Inc. Price and EPS Surprise

Jacobs Solutions Inc. price-eps-surprise | Jacobs Solutions Inc. Quote

Trend in Estimates

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) increased to $2.08 from $2.07 in the past 60 days. The estimated figure indicates a 9.5% increase from the $1.90 reported in the year-ago quarter.

Factors to Note for Jacobs' Q4

Jacobs’ revenues are expected to have increased in the fourth quarter of fiscal 2024, thanks to investments from the U.S. Infrastructure Act and other economic incentives. The company's strategic move away from being solely an engineering and construction firm toward a globally-focused technology solutions provider is likely to have been reflected in the upcoming financial report.

Additionally, this quarter is anticipated to have demonstrated the positive effects of a backlog with higher margins, a dedication to efficiency through digital and technological advancements, and solid project execution, all playing roles in driving overall growth.

J’s continuous shift to digitalization and leadership in strategic end markets like space exploration, life sciences, cyber and water solutions bode well. Again, the U.S. Department of Defense’s increased focus on strategic data utilization is likely to have driven Jacobs’ growth.

However, some short-term headwinds, such as government funding delays, are expected to impact the top line.

A favorable revenue mix in both People & Places Solutions (P&PS) and Critical Mission Solutions (CMS) segments and benefits from PA Consulting (which has a solid accretive gross margin profile of nearly 50%) are likely to get reflected in margins. However, higher overhead costs to facilitate the separation of CMS might have dented margins.

Segment-wise, Jacobs expects continued organic growth in the P&PS segment (which accounted for 58.4% of total revenues in fiscal 2023), primarily driven by a strong backlog in water infrastructure, environmental projects, and advanced facilities like life sciences and semiconductor facilities.

The Zacks Consensus Estimate for P&PS segment revenues is currently pegged at $2.68 billion, reflecting growth from $2.51 billion year over year. P&PS’s operating profit is expected to grow to $286 million from the year-ago figure of $256 million.

The CMS segment (which accounted for 28.7% of total fiscal 2023 revenues) has been a pivotal component of the company's operations, delivering specialized services to government and defense sectors. In May 2023, Jacobs announced plans to separate the CMS business to streamline its portfolio and enhance its focus on higher-growth areas.

On Nov. 20, 2023, Jacobs entered into a definitive agreement to spin off and merge its CMS and Cyber & Intelligence (C&I) businesses with Amentum, a global engineering and technology solutions provider. The merger was completed on Sept. 27, 2024, resulting in the formation of a global leader in advanced engineering and technology solutions. The combined company began trading on the New York Stock Exchange under the ticker "AMTM" on Sept. 30, 2024.

The consensus mark for the CMS segment’s revenues is currently pegged at $1.243 billion, indicating a marginal growth from $1.236 billion a year ago. The CMS segment’s operating profit is expected to be $109 million, up from $103 million reported a year ago.

For the Divergent Solutions segment (which accounted for 5.8% of total fiscal 2023 revenues) continues to play a crucial role in Jacobs' strategy to deliver innovative, data-driven solutions across its global operations. The segment’s operating profit is expected to be $15 million, down from $24.15 million reported in the prior quarter.

The consensus mark for the PA Consulting segment’s (which accounted for 7.1% of total fiscal 2023 revenues) revenues is currently pegged at $303 million, up from $288 million a year ago. The segment’s operating profit is expected to be $64 million, up from $59 million year over year.

Jacobs anticipates temporarily increased overhead costs necessary to facilitate the separation of CMS, encompassing IT and corporate support. While streamlining its corporate cost structure, it has opted to transfer certain corporate unallocated costs to the P&PS segment. This move aims to enhance the long-term recuperation of its corporate overhead. Although this adjustment may temporarily lower segment operating margins, it does not affect the bottom line.

What the Zacks Model Says for Jacobs

Our proven model does not conclusively predict an earnings beat for Jacobs this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Jacobs currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Construction Releases

Fluor Corporation’s FLR third-quarter 2024 earnings missed the Zacks Consensus Estimate and declined from the prior year with lower-than-expected contributions from the Energy Solutions segment. Revenues also missed the consensus mark but increased from the previous year.

FLR noted that since the beginning of October, its ownership of NuScale no longer meets the qualifications for consolidation by Fluor. As a result, it will deconsolidate NuScale in the fourth quarter and recognize a gain of $1.6 billion for its 126 million shares. Also, it expects to complete the sale of Stork’s U.K. operations by the first quarter of 2025, pending regulatory approval.

KBR, Inc. KBR reported mixed third-quarter fiscal 2024 results, with adjusted earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

The quarter’s results were backed by the benefits realized from the LinQuest acquisition and solid contributions from both the reportable businesses, given the increased demand trends for its services. Although high costs and expenses were headwinds, leverage from the increased top line aided the uptick.

Quanta Services Inc. PWR reported mixed results for the third quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same.

Quanta reported a strong quarter with double-digit growth across key financial metrics, a record backlog of $34 billion and $539.5 million in free cash flow. CEO Duke Austin attributed this growth to Quanta’s diverse portfolio, high demand, effective execution and an expanding market.

Zacks Investment Research

Jacobs Solutions, Inc. J is all set to act as a progressive design-build contractor for the Donald C. Tillman Advanced Water Equalization Basins project in the City of Los Angeles, CA.

J will support LA Sanitation and Environment and the Los Angeles Department of Water and Power on the Groundwater Replenishment Project to increase recycled water production by 2035. Per the contract, Jacobs will undertake design, permitting, construction, start-up and commissioning-related responsibilities together with its lead contracting partner Kiewit.

The Donald C. Tillman Advanced Water Purification Facility (AWPF) depends on a constant, stable flow of primary effluent to produce purified water suitable for reuse through groundwater replenishment. These equalization basins can hold up to nine and a half million gallons of water and will regulate variable flows to the AWPF for the optimal function of its advanced water treatment processes. This move is integral to the Los Angeles Groundwater Replenishment (GWR) Project. The AWPF was also delivered by Jacobs.

Currently, Jacobs is supporting a $740 million design-build contract at the Donald C. Tillman site, which is part of the GWR project.

Jacobs’ Efforts for Some Critical Infrastructure Projects

J has been winning some critical infrastructure projects of late. In October, it won two such contracts. Firstly, it received a new five-year contract to provide digital and data-driven solutions to Lincoln-Sewer Management District 1 Wastewater Authority. Again, it secured a 10-year contract with Soquel Creek Water District to operate and maintain an advanced water purification facility.

Apart from these two infrastructure projects, J has been part of some of California’s critical infrastructure projects, such as the Pure Water Project for Las Virgenes-Triunfo, the Alliance for Renewable Clean Hydrogen Energy Systems to establish a statewide hydrogen hub, Los Angeles World Airports Capital Improvement Program, the award-winning Los Angeles Federal Courthouse, the Delta Conveyance Project, the Sixth Street Viaduct Replacement Project and the Port of San Francisco Waterfront Resilience Program.

Jacobs’ Solid Project Execution Bodes Well

Jacobs' ability to execute projects efficiently has played a pivotal role in driving the company's performance in recent quarters. The continuous success in securing new contracts stands as evidence of this proficiency.

The solid project execution efforts are supported by its ongoing backlog growth. At the fiscal third-quarter end, the company reported a backlog of $30.6 billion, up from $28.9 billion a year ago. Book-to-bill was 1.29x at the third quarter of fiscal 2024-end. This reflects persistent solid demand for Jacobs' consulting services.

People & Places Solutions’ backlog was $19.28 billion, up from $17.5 billion reported in the year-ago period. The backlog at the Critical Mission Solutions segment was $8.45 billion, up from $8.1 billion a year ago.

J’s Stock Performance

Shares of this Zacks Rank #4 (Sell) company have gained 7.3% in the past year compared with the Zacks Technology Services industry’s 69.8% growth. The company’s prospects are marred by increased costs and higher restructuring & other charges.

M-tron Industries, Inc. MPTI or MtronPTI, is scheduled to report third-quarter 2024 (ended Sept. 30, 2024) results on Nov. 13, after the closing bell.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

This designer and manufacturer of highly engineered electronic components reported better-than-expected results for the third quarter of 2024. The company’s earnings per share (EPS) and revenues beat the Zacks Consensus Estimate by 26% and 5.4%.

On a year-over-year basis, EPS grew 34% and revenues increased 16.4%, driven by defense sector demand, with gross margin improving to 46.6% from 41.6% a year ago. Adjusted EBITDA rose 30.7% to $2.52 million. The company's growth since its 2022 IPO was emphasized by continued revenue growth, higher new orders, and a positive order backlog trend.

MtronPTI surpassed the consensus mark in three of the last four quarters. The average surprise over this period is 9.2%.

M-tron Industries, Inc. Price and EPS Surprise

M-tron Industries, Inc. price-eps-surprise | M-tron Industries, Inc. Quote

How Are Estimates Placed for MPTI Stock?

The Zacks Consensus Estimate for the third-quarter EPS has remained unchanged at 54 cents over the past 60 days. The estimated figure indicates a 5.3% decline from the year-ago reported figure. Nonetheless, the consensus mark for revenues is $12.2 million, indicating 12% year-over-year growth.

Factors Influencing MtronPTI’s Q3 Performance

The company is seeing positive momentum owing to strong shipments of defense program products and solutions. The company’s third quarter is likely to have gained from strategic investments in the defense sector, new products entering volume production and improved production efficiencies, supported by ongoing investments in personnel and equipment.

The company is strategically positioned to execute its organic growth plans, emphasizing key sectors with substantial potential. MPTI focuses on areas, such as space and satellite technologies, radar applications and electronic warfare solutions, particularly with products like the e-Vibe series OCXOs, designed for stability under dynamic conditions. This characteristic is likely to have contributed to quarterly results.

Overall, MPTI’s strong operational footing and growth trajectory, particularly in its defense and aerospace markets, with continued expansion across high-demand areas like radar, satellite, and electronic warfare applications, are major tailwinds.

However, the company has been experiencing cost pressures primarily due to increased engineering, selling, and administrative expenses, attributed to increased investments in research and development, higher sales commissions due to revenue growth, and elevated administrative and corporate expenses aligned with overall business expansion. This is likely to have affected the company’s profitability.

What the Zacks Model Unveils for MtronPTI

Our proven model does not predict an earnings beat for MtronPTI for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.

Earnings ESP: MPTI has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

Fluor Corporation FLR reported third-quarter 2024 adjusted EPS of 51 cents, which missed the Zacks Consensus Estimate of 78 cents by 34.6%. The reported figure decreased 50% from an EPS of $1.02 a year ago.

Fluor’s quarterly revenues of $4.09 billion missed the consensus mark of $4.79 billion by 14.6%. The figure grew 3.3% from the year-ago quarter’s level of $3.96 billion.

KBR, Inc. KBR reported mixed third-quarter fiscal 2024 results, with adjusted earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

KBR’s quarterly results were backed by the benefits realized from the LinQuest acquisition and solid contributions from both the reportable businesses, given the increased demand trends for its services. Although high costs and expenses were headwinds, leverage from the increased top line aided the uptick.

Quanta Services Inc. PWR reported mixed results for the third quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same.

Quanta reported a strong quarter with double-digit growth across key financial metrics, a record backlog of $34 billion and $539.5 million in free cash flow. CEO Duke Austin attributed this growth to Quanta’s diverse portfolio, high demand, effective execution and an expanding market.

Zacks Investment Research