Analyst Note| Krzysztof Smalec, CFA |
We are maintaining our $152 fair value estimate for Jacobs Engineering after the company reported solid fiscal second-quarter results, with adjusted EPS of $1.72 up 4% from the same period last year. The firm's fiscal second-quarter GAAP EPS from continuing operations of $0.68 included a $0.63 per share charge related to a legacy CH2M settlement and associated legal costs. We have updated our near-term revenue growth and operating margin projections, but nothing in Jacobs’ earnings results materially alters our long-term outlook for the firm. We view the stock as fairly valued at current levels.