Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| CMS Q4 revenue was 7% higher year-over-year and operating profit increased 26% behind a 128 bps of margin expansion |
| And then, Bob, just P&PS, net revenue up 11% year I think you said you have good confidence in mid- to high single-digit organic revenue growth |
| Our team has shown remarkable strength, adaptability, and dedication and continuing to deliver outstanding results to our clients |
| So I'd say all in all, the geographic diversity that we have in our business really, really is strong and helps us |
| We believe this combination of two premium industry leaders, who share strong operating platforms, high-performance culture, and a breadth of expertise offer shareholders the best opportunity to realize long-term value |
| Its pipeline and growth outlook remained robust with major award prospects in FY 2024 and minimal forecasted recompete pursuits |
| You said in your prepared remarks, the outlook remains very healthy |
| In fact, our pipeline continues to grow at mid to high-single-digit percentages, and this is on a base that's very high |
| Post transaction, Jacobs will be a well-capitalized pure play critical infrastructure and sustainability leader with a strong balance sheet and significant growth potential |
| PA Consulting continues to post strong results with 13% revenue growth and nearly 21% operating profit margins, despite a very challenging macro environment |
| Turning to slide seven and Q4, I'm pleased to report another record quarter as measured by both revenue and operating profit |
| Strong cash conversion remains a hallmark of our business model and remain robust in Q4 allowing us to drive record fiscal year 2023 free cash flow in order to return capital to shareholders, while investing behind our growth accelerators, Climate Response, Data Solutions, and Consulting & Advisory |
| But I'd say over the course of the next two or three, four years, it's going to drive that margin expansion even beyond what Claudia talked about post '25 with a cash conversion component to that that's very high |
| But now with the GLP-1 drugs going on in life sciences and all the strength that we see with our clients we've had for years, advanced facilities is going to continue to be strong |
| Our underlying business and outlook remains very healthy and we continue to be excited about robust growth opportunities in all our end markets |
| Turning to slide eight, our People & Places line of business delivered accelerating top-line growth with adjusted net revenue up 11% year-over-year and adjusted operating profit up 12% year-over-year |
| Actually, I think it's really strong in our P&PS business right now |
| We continue to see widespread positive indicators with a gross profit in backlog growth of 8% year-over-year |
| Once again, our pipeline continues to grow faster than our top-line, which provides visibility and confidence, and our expectations that growth can persist at mid-to-high single-digits organically in FY '24 |
| Looking back at FY '23, I want to highlight the significant achievements of our P&PS business with double-digit organic OP growth in every quarter |
| And then the core underlying People & Places cadence that's better than that |
| We continue to be energized and excited about the future for Jacobs and CMS, and remain confident in our plan for long-term value creation |
| We are well positioned to accelerate profitable growth in the years to come as we seek to compound per share value for our shareholders |
| For the full-year, adjusted operating profit was up 16% and adjusted operating margins were 14.6%, up 100 basis points year-over-year |
| Europe rebounded positively after being our weakest region year-to-date and we saw continued strength in the Middle East, Americas, and Asia-Pacific |
| Growth was consistently strong across all business units |
| P&PS Q4 operating profit was up 12% driven by strong growth, maintaining healthy gross margins and solid G&A management resulted in an adjusted operating margin of 15%, up 16 basis points year-over-year |
| P&PS continues to see solid momentum, delivering strong revenue and operating profit results |
| Our P&PS Americas unit, which is our largest by revenue benefited from legislative drivers and a healthy state and local budgets continuing to book client spending |
| Third, strengthening discipline and deploying our shareholder capital |
| Statement |
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| This, coupled with a historical seasonality, will have an approximately 10% negative effect year-over-year on adjusted EPS in Q1 |
| It's crucial to emphasize that the underlying fundamentals of our business have never been stronger |
| Andy Kaplowitz So just sorting through Q4 results, I know there's a lot of noise because of the announced deal, but EPS and upcoming in below the low end of your previous guidance, could you give us more color into what exactly happened in the quarter that was below your expectations? And you mentioned the $40 million of temporary costs that you're carrying and how that's impacting your results |
| I don't actually think, Chad, it's a weakness |
| One is kind of coming down as far as the way that we saw |
| It's temporary |
| We are streamlining our operating model with an eye towards positioning us for growth and cost efficiency, while staying focused on our clients |
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