Jacobs beats Q3 revenue estimates on steady demand in infrastructure business
Corrects headline to say company reported Q3, not Q2
Aug 6 (Reuters) -Engineering consulting firm Jacobs Solutions J.N beat third-quarter revenue estimates on Tuesday, helped by sustained demand in its infrastructure services unit.
The People & Places Solutions (P&PS) segment,which provides architecture, energy transition and other technical services, benefited from the U.S. government's $1 trillion infrastructure bill, besides robust demand from construction and utility firms.
The company's quarterly revenue of $4.23 billion exceeded analysts' average expectation of $3.99 billion, according to LSEG data.
"Jacobs has sustained its strong margin profile in the third quarter, reflecting our commitment to strategic, disciplined execution." CEO Bob Pragada said.
The company in November announced a restructuring plan that included spinning off its Critical Mission Solutions unit, which provides cybersecurity and other such services, and parts of its Divergent Solutions unit that delivers data solutions.
Jacobs said on Tuesday it expects the spin-off and the resultant merger with rival contractor Amentum Services for the formation of a new publicly listed company to be complete in the second half of September 2024.
On an adjusted basis, Jacobs' third-quarter profit rose 11% to $1.96per share from a year ago, in line with analysts' estimates.
The company narrowed its full-year adjusted earnings forecast to between $7.85 and $8.05per share, compared with the earlier range of $7.80 to $8.10.
Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shreya Biswas
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