Government and sustainable technology solutions company KBR (NYSE:KBR) will be reporting earnings tomorrow after market hours. Here’s what to look for.

KBR met analysts’ revenue expectations last quarter, reporting revenues of $1.95 billion, up 10% year on year. It was a strong quarter for the company, with a solid beat of analysts’ backlog estimates and a decent beat of analysts’ adjusted operating income 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 15% year on year to $1.99 billion, improving from the 7.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.82 per share.

Analysts covering the company have generally 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 defense contractors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mercury Systems delivered year-on-year revenue growth of 13%, beating analysts’ expectations by 23.9%, and Leonardo DRS reported revenues up 5.9%, topping estimates by 4.9%. Mercury Systems traded up 18.3% following the results while Leonardo DRS was down 2.4%.

Read our full analysis of Mercury Systems’s results here and Leonardo DRS’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the defense contractors stocks have shown solid performance, the group has generally underpeformed, with share prices down 6.2% on average over the last month. KBR is down 11.8% during the same time and is heading into earnings with an average analyst price target of $75.67 (compared to the current share price of $49.13).

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