Government and sustainable technology solutions company KBR (NYSE:KBR) will be reporting earnings this Thursday before market open. Here’s what investors should know.
KBR missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $2.06 billion, up 13% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a solid 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 12.9% year on year to $2.09 billion, improving from the 5.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 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 Q2 results, giving us a hint as to what we can expect. General Dynamics delivered year-on-year revenue growth of 8.9%, beating analysts’ expectations by 5.7%, and Northrop Grumman reported revenues up 1.3%, topping estimates by 3%. General Dynamics traded up 5.7% following the results while Northrop Grumman was also up 10.4%.
Read our full analysis of General Dynamics’s results here and Northrop Grumman’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 5.5% on average over the last month. KBR is down 2.8% during the same time and is heading into earnings with an average analyst price target of $66 (compared to the current share price of $46.58).
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