The S&P 500 was rising 11.59 points, or 0.83%, to 1,409.50.
Shares of Jacobs Engineering fell 6.09% to $41.16. The construction services company reported second-quarter earnings Monday of $83.9 million, or 65 cents a share, up from year-earlier earnings of $80.3 million, or 63 cents.
"Our second quarter results were below expectations," said Chief Financial Officer John Prosser Jr. in a statement. "Three factors contributed to the results: first, our SG&A expenses were higher than expected; additionally, several planned turnarounds were deferred until FY13, reducing field services margins; lastly, professional services margins in March were lower than anticipated. As a result, we are revising our guidance for fiscal year 2012 to a range of $2.80 to $3.00 per share."Analysts are expecting profit of $3.04 a share. Jacobs Engineering trades at an estimated price-to-earnings ratio for next year of 12.01 times; the average for heavy construction companies is 12.57. For comparison, Fluor (FLR) has a higher forward P/E of 13.24. Thirteen of the 23 analysts who cover Jacobs Engineering rated it buy; 10 analysts gave the stock a hold rating. The stock has risen 1.08% year to date.
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