Monday, November 10, 2014

Why Jacobs Engineering Group Slumped in 2014

Shares in engineering consultant Jacobs Engineering Group (NYSE: JEC  ) have declined more than 26% this year, as of this writing. Such a result is hardly surprising, given that EPS guidance has been significantly lowered this year. At the start of the year, analysts were predicting 2014 EPS to reach $3.66, but today that forecast stands at $3.29. What happened to the company this year, and will this be an ongoing problem?



Jacobs needs customers to increase spending on processing. Source: Jacobs Engineering.

Restructuring costs and tougher end-markets than previously expected


The company has been wrestling with two main issues this year:


READ THE FULL EQUITY RESEARCH ARTICLE LINKED HERE