WOR reports this week, Wednesday the 21st. Consensus EBITDA is...

WOR reports this week, Wednesday the 21st. Consensus EBITDA is $498 million and NPAT is $256 million

All things being equal I'm quietly confident at this stage that the actual result will be a beat. Andrew Wood himself commented that earnings will be weighted to the second half.

The market will be keenly observing any commentary in relation to any further revisions to already revised cost synergies ($150 m from $130 m) which I feel is a very likely but more importantly any revenue synergies which will be the real driver of upside to broker estimates. In its investor day preso, Worley's alluded to this - see p.g. 39, 43 - 49.

The big threat to the SP reaction post results is the current macro, US China trade tensions and HK protests if they potentially escalate between now and when it reports. POO has been hit hard as usually is the case.

But notwithstanding that I hope the market looks past the macro and considers the merits of the results which could be very solid to the extent of re-rating the SP based on the Jacobs ECR contribution moving forward.

Hard to say in terms of price targets post results and what the re-rate could be, but suffice to say the current SP implies zero attributions from the Jacobs business which is unreasonable. I like to think we can expect a re-rate back up to around $17 - $18 and then gradual re-rate based on incremental cost and revenue synergies realised.

Keen to hear others thoughts.

Cheers