Government and sustainable technology solutions company KBR (NYSE: KBR) will be reporting results this Thursday before the bell. Here’s what you need to know.
KBR beat analysts’ revenue expectations last quarter, reporting revenues of $1.92 billion, down 4.7% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Is KBR a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting KBR’s revenue to decline 1.9% year on year, a reversal from the 5.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. KBR has missed Wall Street’s revenue estimates multiple 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. RTX delivered year-on-year revenue growth of 14.5%, beating analysts’ expectations by 7.8%, and Lockheed Martin reported revenues up 10.5%, topping estimates by 3.8%. RTX traded up 9.2% following the results while Lockheed Martin was also up 13.3%.
Read our full analysis of RTX’s results here and Lockheed Martin’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the defense contractors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% 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 $45.86 (compared to the current share price of $37.23).
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