- Energy-focused engineer KBR (KBR +6.2%) rallies after easily beating Q2 earnings estimates and guiding FY 2015 earnings estimates above consensus.
- KBR said the $23M in cash proceeds from the sale of its building group unit helped offset declines in government contracts and customers cutting back because of plunging oil prices; the move, along with recent cost cuts, led KBR to increase its full-year EPS guidance to $1.22-$1.37 vs. $1.17 analyst consensus.
- Q2 revenues in the engineering and construction segment fell to $1B from $1.26B even as the sector’s profit grew by $19M to $52M, revenue in the government services segment was unchanged at $158M as was the $1M loss, and technology and consulting revenue fell to $80M from $100M a year ago while the sector’s profit grew to $21M from $15M.