KBR’s 4Q Profit Tops Analysts’ Estimates; Street Is Bullish


KBR delivered better-than-expected earnings in the fourth quarter, while sales missed Wall Street analysts’ estimates.

KBR’s (KBR) 4Q adjusted earnings of $0.51 per share exceeded the consensus estimates of $0.48 per share and jumped 10.8% year-over-year, led by an increase in its top-line and improved adjusted EBITDA.

Meanwhile, the engineering and construction company’s 4Q revenues rose about 1% year-over-year to $1.47 billion but lagged the Street’s estimates of $1.51 billion. Adjusted EBITDA grew 15.4% year-over-year to $135 million.

KBR’s CEO Stuart Bradie said, “We accelerated growth into attractive markets with the Centauri acquisition, strategically focused our commercial portfolio toward clean, sustainable solutions, and significantly advanced our corporate ESG and sustainability strategy, committing to net-zero carbon emissions by 2030 and achieving carbon neutrality in 2019.”

As for 2021, KBR expects to generate adjusted EPS in the range of $2-$2.20 per share, with the midpoint coming in slightly higher than the consensus estimates of $2.07 per share. The company forecasted 2021 revenues in the range of $5.8-$6.2 billion, which at the midpoint outperformed analysts’ estimates of $5.95 billion. (See KBR stock analysis on TipRanks).

Earlier on Feb. 4, D.A. Davidson analyst Brent Thielman downgraded KBR to Hold from Buy, as the analyst believes that shareholders have been “rewarded” following the stock’s recent appreciation. Thielman maintained a price target of $30 (7% downside potential). Shares added almost 17% in value over the past three months.

Unlike Thielman, the Street has a bullish outlook on the stock with a Strong Buy consensus rating based on 5 Buys and 1 Hold. The average analyst price target of $35.67 implies upside potential of about 10.6% to current levels.

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in KBR is currently Very Positive as 6 hedge funds increased their cumulative holdings in KBR by 902.4K shares in the last quarter.

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