Stock of the Day

October 15, 2019

Exponent (EXPO)

$72.28
+$1.18 (+1.7%)
Market Cap: $3.38B

About Exponent

Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company in the United States and internationally. The company operates in two segments, Engineering and Other Scientific, and Environmental and Health. The Engineering and Other Scientific segment provides services in the areas of biomechanics, biomedical engineering and sciences, buildings and structures, civil engineering, construction consulting, data sciences, electrical engineering and computer science, human factors, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, thermal sciences, and vehicle engineering. The Environmental and Health segment offers services in the areas of chemical regulation and food safety, ecological and biological sciences, environmental and earth sciences, and health sciences. The company offers approximately 90 technical disciplines to solve pressing and complicated challenges facing stakeholders. It serves clients in chemical, construction, consumer products, energy, food, beverage and nutrition, government, life sciences, insurance, manufacturing, technology, industrial equipment, transportation, and other sectors of the economy. The company was formerly known as The Failure Group, Inc. and changed its name to Exponent, Inc. in 1998. The company was founded in 1967 and is headquartered in Menlo Park, California.

Today's Trend

Exponent, Inc. (NASDAQ: EXPO) shares are benefiting from strong second-quarter results, a more optimistic 2026 outlook and a higher analyst price target.

  • Q2 earnings and revenue exceeded expectations: Exponent reported adjusted earnings of $0.60 per share versus the $0.55 consensus estimate. Revenue reached approximately $171.6 million, while operating profit rose 63.1% year over year to $28.0 million. Exponent Q2 earnings report
  • Growth outlook raised: Management increased its 2026 net revenue growth forecast to 9%–10%, citing expanding demand for services related to artificial intelligence. The improved guidance reinforces expectations for continued business momentum. Exponent raises 2026 growth outlook
  • JPMorgan raised its price target: JPMorgan Chase increased its target from $80 to $90 and assigned an “overweight” rating, implying substantial potential appreciation from the referenced $66.94 price. JPMorgan raises Exponent price target
  • Capital returns increased: The board declared a quarterly dividend of $0.31 per share and expanded the company’s stock-repurchase authorization by $50 million. Exponent dividend and repurchase announcement
  • The dividend offers an annualized yield of roughly 1.9%, with payment scheduled for September 18 to shareholders of record on September 4.
  • Insider-trading data showed 17 reported insider sales and no purchases over the past six months, which may raise a modest sentiment concern. Quarterly operating cash flow was also negative at $1.0 million, although capital spending remained limited at $2.5 million.
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