Jacobs Solutions (J) Declined on Missed Earnings Expectations

Madison Investments, an investment advisor, released its “Madison Sustainable Equity Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. During the fourth quarter, equity markets ended the year on a high note, with the S&P 500 achieving an 11.7% increase. This brought the full-year return to 26.3%. The Fund (Class Y) returned 18.0% for the year, but had a Q4 return of 11.9%, trailing the S&P 500. The fourth quarter’s strength can be attributed to the yield curve’s downward shift. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Madison Sustainable Equity Fund featured stocks such as Jacobs Solutions Inc. (NYSE:J) in the fourth quarter 2023 investor letter. Headquartered in Dallas, Texas, Jacobs Solutions Inc. (NYSE:J) offers consulting, technical, scientific, and project delivery services.  On February 1, 2024, Jacobs Solutions Inc. (NYSE:J) stock closed at $136.95 per share. The one-month return of Jacobs Solutions Inc. (NYSE:J) was 8.19%, and its shares gained 9.08% of their value over the last 52 weeks. Jacobs Solutions Inc. (NYSE:J) has a market capitalization of $17.299 billion.

Madison Sustainable Equity Fund stated the following regarding Jacobs Solutions Inc. (NYSE:J) in its fourth quarter 2023 investor letter:

“Jacobs Solutions Inc. (NYSE:J) was down after missing earnings expectations and providing 2024 guidance below expectations. While revenue growth remains strong with high single digit growth, costs were higher than expected mostly related to the carrying cost of the upcoming spin of its government services business. We estimate that post the spin, Jacobs will have a higher growth rate and higher margin profile with an improved balance sheet.”

A quantum computer on a countertop in an engineering laboratory with a technician at work.

Jacobs Solutions Inc. (NYSE:J) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Jacobs Solutions Inc. (NYSE:J) at the end of third quarter which was 46 in the previous quarter.

We discussed Jacobs Solutions Inc. (NYSE:J) in another article and shared the list of countries that produce the best architects in the world. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.