KBR, Inc. (KBR 14.03), a technology and consulting services company that specializes in serving the needs of the government services and hydrocarbon sectors, will be presenting at the 2017 KeyBanc Capital Markets' Industrial, Automotive and Transportation Conference on Thursday, June 1. The company has come out in front of that appearance, however, to reaffirm its fiscal 2017 guidance.
When KBR reported its fiscal first quarter results in late-April, the company said that it anticipated full-year 2017 fully diluted adjusted earnings per share to be between $1.10 and $1.40 and that it expected to come in above the midpoint of that guidance range.
Today, KBR confirmed that expectation. KBR is projecting earnings per share to be above the mid-point in the guidance range, pointing to the resolution of the PEMEX settlement announced in early-April as a basis for that expectation. KBR was paid $435 million under the settlement, which closed a nearly decade long dispute.
In conjunction with earnings per share guidance, KBR also said it is estimating an effective tax rate of 25% to 27% for 2017, EBITDA in the range of $300 million to $350 million, and operating cash flows to be between $100 million and $200 million.
KBR shares are down 15.9% year-to-date, having incurred the bulk of its losses in the wake of disappointing fourth quarter results reported in late-February.