When KBR Inc. (NYSE: KBR) released its second-quarter financial results before the markets opened on Monday, the company said that it had $0.34 in earnings per share (EPS) and $1.27 billion in revenue. The consensus estimates had called for $0.34 in EPS and revenue of $1.14 billion. The same period of last year reportedly had EPS of $0.57 and $1.09 billion in revenue.
During the latest quarter, the increase in revenues was driven by strong organic growth of 11% in KBR’s Government Services business segment, the consolidation of acquired entities in the Aspire Defence program and its acquisition of SGT.
In terms of its segments, the company reported as follows:
- Government Services revenues increased 59.9% year over year to $868 million.
- Technology revenues increased 2.9% to $72 million.
- Hydrocarbons Services revenues decreased 31.0% to $327 million.
Looking ahead to the 2018 full year, the company expects to see EPS in the range of $1.40 to $1.50, up from the previous range of $1.35 to $1.45. The consensus estimates are $1.39 in EPS and $4.58 billion in revenue for the year.
Stuart Bradie, KBR president and CEO, commented:
We experienced continued year over year organic growth in our Government Services business, increased profitability in Technology and stabilized sequential revenues with a very healthy book-to-bill in our Hydrocarbons business. The signals we are getting from customers on the capital projects outlook in Hydrocarbons has improved measurably in recent months. In addition, on the operations side we maintained our targeted margins in all segments and produced a healthy cash flow result. Improving fundamentals in our government and hydrocarbons end markets coupled with our strategic positioning and performance of our recent acquisitions enable us to raise our outlook for the year. Our people continue to be the foundation of this company and its success, consistently delivering the best execution and one of the strongest safety performances in the business.
Shares of KBR were last seen trading up about 4.5% at $19.55, with a consensus analyst price target of $20.29 and a 52-week range of $14.40 to $21.70.