Why Jacobs Solutions Stock Dropped Today
Shares of Jacobs Solutions (NYSE: J) were down 8% as of 12:30 p.m. ET Tuesday after the professional services firm announced mixed fiscal fourth-quarter results. Jacobs also announced a spinoff of two of its business segments into a new publicly traded company.
On the former, Jacobs' quarterly revenue grew 10.5% year over year (7.3% at constant currency) to $4.29 billion, while adjusted earnings from continuing operations increased 5.6% to $1.90 per share. Most analysts were expecting higher earnings of $2.02 per share, but on lower revenue of $4.21 billion.
Delving deeper into Jacobs' results, Critical Missions Solutions segment revenue grew 26.4% year over year to $102.9 million, while its People & Places Solutions segment sales rose 11.7% to $256.2 million. Meanwhile, revenue from Jacobs' smaller Divergent Solutions segment climbed around 58% to $24.1 million, and its PA Consulting business grew 20.5% to $59.5 million.
Source Fool.com
