Shares of Jacobs Engineering Group Inc. fell sharply Tuesday after the giant construction services and engineering firm posted quarterly earnings that fell short of Wall Street's forecasts.
Jacobs' stock was down $3.04 a share, or 6.5%, at $43.61 in afternoon trading after being down more than 9% earlier in the session.
The drop in global oil prices impacted the Pasadena-based company because it's causing energy companies to think twice about spending for new projects.
"Current headwinds caused by energy and commodity prices" are a key reason why "we continue to be cautious in our short-term outlook," Jacobs Executive Chairman Noel Watson said in a statement.
Jacobs said earnings for its fiscal second quarter ended March 27, adjusted for restructuring costs and other special items, fell 16.2% from a year earlier to $91.6 million, or 72 cents a share. Analysts had expected 79 cents a share, according to Factset Research.
The company also lowered its adjusted earnings forecast for its full fiscal year to $2.90 to $3.20 a share from the $3.34 analysts had forecast.
Jacobs said its fiscal second-quarter revenue slipped 2.3% to $2.90 billion, and its order backlog was $18.9 billion as of March 27, up 2.5% from a year earlier.
With revenue of $12.7 billion in fiscal 2014 and 66,000 employees, Jacobs is one of the largest companies based in Southern California.