QUOTE AND NEWS
Market Intelligence Center  Jun 26  Comment 
KBR (KBR) is a good candidate for a covered call at the $19.00 level. The Dec. '15 call at that price should fetch a credit of about $2.15, which means the entire position has a net debit of about $17.84. This trade has 6.95% downside protection....
TheStreet.com  Jun 11  Comment 
NEW YORK (TheStreet) -- KBR stock received a price target raise to $25 from $22 by analysts at DA Davidson who maintained their "buy" rating. KBR operates as an engineering, construction, and services company worldwide. Analysts cited that...
Benzinga  Jun 8  Comment 
KBR announced today it has been awarded an alliance contract by the Victorian Government for Railroad Crossing Removal Projects in Victoria, Australia. Under the terms of the contract, KBR and John Holland will remove four railroad crossings in...
Market Intelligence Center  Jun 2  Comment 
After Monday’s trading in KBR (KBR) MarketIntelligenceCenter.com's option trade-picking algorithms uncovered a trade that offers a 5.67% or 19.17% (for comparison purposes only), while providing 6.50% downside protection. The trade is a Sep. '15...
New York Times  May 26  Comment 
The court said that a suit against Halliburton and KBR Inc. had been filed too late, and it also expanded the power of bankruptcy judges.
Market Intelligence Center  May 7  Comment 
KBR (KBR) traded between $17.76 and $18.17 before closing at $18.11 Wednesday and presents some attractive trading opportunities today. MarketIntelligenceCenter.com’s algorithms have picked a Sep. '15 $18.00 covered call for a net debit of about...
TheStreet.com  Apr 30  Comment 
NEW YORK (TheStreet) -- Shares of engineering company KBR  rose 5.63% to $18.02 in early afternoon trading Thursday after the engineering company reported first-quarter earnings that beat analysts' expectations. The company reported earnings...
Wall Street Journal  Apr 29  Comment 
KBR Inc. swung to a profit in its first quarter as cost cuts helped offset declining sales.
Market Intelligence Center  Apr 21  Comment 
After Monday’s trading in KBR (KBR) MarketIntelligenceCenter.com's option trade-picking algorithms uncovered a trade that offers a 6.38% or 15.53% (for comparison purposes only), while providing 9.62% downside protection. The trade is a Sep. '15...




RELATED WIKI ARTICLES
 

KBR, Inc. (KBR) is an international construction, engineering, and services company supporting the energy, government, and civil infrastructure sectors.[1] The Company operates in four segments:Hydrocarbons; Infrastructure, Government & Power ("IGP"); Services; and Other.[1] Revenue from operations in Iraq were 29%, 35%, and 43% of revenue in 2010, 2009, and 2008 respectively, marking decreasing revenues as the war in Iraq winds down.[1] Despite these losses, KBR is partially sheltered from the recession in the United States as a result of extensive operations abroad in countries such as Kazakhstan, Saudi Arabia, and Australia.[2]

Business Growth

Almost 80% of KBR's revenue comes from operations abroad, including operations in Iraq and Afghanistan.[2] As the wars in these two theaters come to an end, revenue will decrease. Revenue from IGP, the segment that deals with contracting in war zones, decreased by 32% between 2009 and 2010.[1] Revenue decreased from $6.3 billion to $4.3 billion in 2009 and 2010 respectively.[1]

Trends and Forces

Infrastructure, Government and Power Revenue Contingent Upon Government Spending

Approximately half of KBR's revenues come from government contracts in war zones such as Afghanistan and Iraq.[1] As operations in Iraq came to an end, KBR incurred a $2 billion loss as a result of decreasing U.S. military need.[1] Furthermore, as international allies end their operations in these theaters, they will have to rely on KBR less for material support.[1]

The Effects of the U.S. Recession are Partially Offset by Operations Abroad

Revenue from international operations has increased to nearly 80% of KBR's total earnings.[1] Though KBR is largely reliant on U.S. and Western government contracts, it has expanded into areas such as Central Asia and the Persian Gulf.[2] These projects namely include building infrastructure for emerging nations; KBR has announced multi-billion dollar contracts to help build mines in Australia and with Rio Tinto and Hancock Prospecting.[2]

Competition

KBR competes directly with a growing industry of government contracts that emerged to take advantage of spending in the aftermath of the terrorist attacks of 9/11, as well as traditional engineering and construction companies. These companies include:

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 KBR 2010 Annual Report
  2. 2.0 2.1 2.2 2.3 KBR ranked No. 10 on the Washington Technology 2011 Top 100
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