KBR said Tuesday it still expects adjusted earnings of between $1.10 and $1.40 per diluted share in 2017, although, in light of the resolution of the Pemex settlement, it projects EPS to be above the mid-point in the range. The guidance continues to straddle the Street view of $1.31 per share.
KBR’s guidance excludes legal costs associated with legacy U.S. Government contracts that are expected to be approximately $9 million, or $0.07 per fully diluted share in 2017. The estimated legacy legal fees do not assume any cost reimbursement from the U.S. Government that could occur in the future. The estimated effective tax rate for 2017 is expected to range from 25% to 27%. Earnings before interest, tax, depreciation and amortization is seen at $300 million-$350 million. The estimate for operating cash flows will range from $100 million- $200 million, KBR said.