Government and sustainable technology solutions company KBR (NYSE:KBR) will be reporting earnings tomorrow before the bell. Here’s what to look for.
KBR missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $1.86 billion, up 5.8% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ operating margin estimates but a miss of analysts’ backlog sales 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 10.7% year on year to $1.96 billion, improving from the 8.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.
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 six times over the last two years.
Looking at KBR’s peers in the aerospace and defense segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Byrna delivered year-on-year revenue growth of 194%, meeting analysts’ expectations, and Hexcel reported revenues up 8.8%, falling short of estimates by 1.3%. Byrna traded down 18.4% following the results.
Read our full analysis of Byrna’s results here and Hexcel’s results here.
There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 2.3% on average over the last month. KBR is up 10.4% during the same time and is heading into earnings with an average analyst price target of $77.70 (compared to the current share price of $71.08).
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