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J NYSE· Jacobs Solutions Inc
Earnings report Q4 2023

J Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

J reported total revenues of $4.16 billion for the first fiscal quarter of 2024, representing a significant increase of $0.36 billion, or 9.5%, compared to the corresponding period last year. This growth in revenue was primarily driven by the company's P&PS business, which saw stronger performance in its Advanced Facilities, Federal & Environmental, and Energy & Power operations. Additionally, J's CMS business benefited from increased volume in the nuclear remediation sector in the U.S. and United Kingdom, as well as strong performance in the space, defense, and energy markets.

Strengths

J's revenue growth in the latest quarter can be attributed to several factors. Firstly, the company's P&PS business experienced improved performance in key areas, indicating successful execution of its operations. Furthermore, J's CMS business benefited from increased demand in the nuclear remediation sector, highlighting the company's ability to capitalize on market opportunities. Additionally, J's international businesses contributed positively to revenue growth, with a favorable impact of $53.1 million from foreign currency translation.

Challenges

While J achieved strong revenue growth in the latest quarter, it also faced certain challenges. The company reported an increase in SG&A expenses, which rose to $646.5 million compared to $576.9 million in the same period last year. This indicates higher operating costs, which could potentially impact profitability if not managed effectively.

Noteworthy

It is noteworthy that J's international businesses played a significant role in driving revenue growth, with a favorable impact of $53.1 million from foreign currency translation. This highlights the company's ability to leverage its global presence and benefit from favorable exchange rates. Additionally, J's operating profit for the segment increased by $11.2 million, or 13.6%, compared to the prior year, driven by growth in the nuclear remediation market and strong performance in the U.S. government space market and international defense and energy markets.

Summary

J delivered a strong performance in terms of revenue growth in the latest quarter, with total revenues increasing by 9.5% compared to the corresponding period last year. This growth was primarily driven by the company's P&PS and CMS businesses, which benefited from improved performance in key areas and increased demand in the nuclear remediation sector. J's international businesses also contributed positively to revenue growth through favorable foreign currency translation. However, the company faced challenges in the form of increased SG&A expenses, which could impact profitability. Overall, J's ability to capitalize on market opportunities and leverage its global presence positions it well for future growth.

Source documents

Form 10-Q  filed on Feb 06, 2024
120 pages scanned

Reference data

Company financials Q4 revenue 3.83B
Analyst estimates Q4 EPS beat by 2.30%
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