Bitdeer Technologies Group (BTDR) Q2 Earnings Preview: What's in the Cards?

Analysts on Wall Street project that Jacobs Solutions will announce quarterly earnings of $1.95 per share in its forthcoming report, representing an increase of 7.1% year over year. Revenues are projected to reach $4.38 billion, increasing 4.7% from the same quarter last year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Jacobs Solutions metrics that are commonly monitored and projected by Wall Street analysts.

The average prediction of analysts places 'Revenues- PA Consulting' at $303.14 million. The estimate points to a change of +5.7% from the year-ago quarter.

Analysts' assessment points toward 'Revenues- Critical Mission Solutions' reaching $1.19 billion. The estimate indicates a year-over-year change of +0.2%.

The consensus estimate for 'Segment Operating Profit- Critical Mission Solutions' stands at $103.28 million. Compared to the current estimate, the company reported $99.14 million in the same quarter of the previous year.

The consensus among analysts is that 'Segment Operating Profit- Divergent Solutions' will reach $21.67 million. The estimate compares to the year-ago value of $20.79 million.

Based on the collective assessment of analysts, 'Segment Operating Profit- PA Consulting' should arrive at $62.71 million. Compared to the present estimate, the company reported $60.86 million in the same quarter last year.

According to the collective judgment of analysts, 'Segment Operating Profit- People & Places Solutions' should come in at $268.86 million. Compared to the present estimate, the company reported $242.67 million in the same quarter last year.

View all Key Company Metrics for Jacobs Solutions here>>>

Shares of Jacobs Solutions have demonstrated returns of +5.7% over the past month compared to the Zacks S&P 500 composite's +1.1% change. With a Zacks Rank #3 (Hold), J is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here

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Jacobs Solutions is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on August 6, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus Estimate

This construction and technical services company is expected to post quarterly earnings of $1.95 per share in its upcoming report, which represents a year-over-year change of +7.1%.

Revenues are expected to be $4.38 billion, up 4.7% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 0.17% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Earnings Whisper

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Jacobs Solutions?

For Jacobs Solutions, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.68%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Jacobs Solutions will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Jacobs Solutions would post earnings of $1.84 per share when it actually produced earnings of $1.91, delivering a surprise of +3.80%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Jacobs Solutions doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected Results

Among the stocks in the Zacks Technology Services industry, SPX Technologies is soon expected to post earnings of $1.26 per share for the quarter ended June 2024. This estimate indicates a year-over-year change of +18.9%. This quarter's revenue is expected to be $490.93 million, up 16% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for SPX Technologies has been revised 0.8% down to the current level. Nevertheless, the company now has an Earnings ESP of 1.59%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that SPX Technologies will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

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