Government and sustainable technology solutions company KBR (NYSE: KBR) will be reporting results tomorrow before the bell. Here’s what to look for.
KBR beat analysts’ revenue expectations by 6.7% last quarter, reporting revenues of $2.12 billion, up 22.7% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ backlog estimates.
Is KBR a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting KBR’s revenue to grow 14.7% year on year to $2.08 billion, improving from the 6.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.86 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. KBR has missed Wall Street’s revenue estimates five times over the last two years.
Looking at KBR’s peers in the defense contractors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CACI delivered year-on-year revenue growth of 11.8%, beating analysts’ expectations by 1.5%, and Lockheed Martin reported revenues up 4.5%, topping estimates by 1.1%. CACI traded up 7.9% following the results while Lockheed Martin was also up 1.1%.
Read our full analysis of CACI’s results here and Lockheed Martin’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 13% on average over the last month. KBR is up 12% during the same time and is heading into earnings with an average analyst price target of $66.56 (compared to the current share price of $51.75).
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