KBR (KBR) Reports Earnings Tomorrow: What To Expect

Government and sustainable technology solutions company KBR (NYSE:KBR) will be reporting results this Thursday before market open. Here’s what investors should know.

KBR missed analysts’ revenue expectations last quarter, reporting revenues of $1.93 billion, flat year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

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 9.1% year on year, a reversal from the 22.7% 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 to 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 Q4 results, giving us a hint as to what we can expect. Mercury Systems delivered year-on-year revenue growth of 4.4%, beating analysts’ expectations by 10.4%, and Leidos reported a revenue decline of 3.6%, falling short of estimates by 2.5%. Mercury Systems traded down 22.3% following the results while Leidos was also down 2.7%.

Read our full analysis of Mercury Systems’s results here and Leidos’s results here.

There has been positive sentiment among investors in the defense contractors segment, with share prices up 5.7% on average over the last month. KBR is down 7% during the same time and is heading into earnings with an average analyst price target of $54.78 (compared to the current share price of $40.63).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.