Government and sustainable technology solutions company KBR (NYSE: KBR) will be reporting results this Tuesday before market open. Here’s what investors should know.
KBR missed analysts’ revenue expectations last quarter, reporting revenues of $1.89 billion, down 10.6% year on year. It was a mixed quarter for the company, with full-year EBITDA guidance beating analysts’ expectations but a significant miss of analysts’ revenue estimates.
Is KBR a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting KBR’s revenue to decline 7.3% year on year, a reversal from the 11% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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 multiple 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. General Dynamics delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 5.9%, and RTX reported revenues up 8.7%, topping estimates by 2.7%. General Dynamics traded up 9.5% following the results while RTX was down 7.6%.
Read our full analysis of General Dynamics’s results here and RTX’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 9.4% on average over the last month. KBR’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $51.13 (compared to the current share price of $37.49).
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