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Jacobs Gets Multiple Contracts to Offer Services to JAXPORT

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Jacobs Engineering Group Inc. (J - Free Report) has received multiple contracts from the Jacksonville Port Authority (“JAXPORT”) to support the expansion of Florida’s largest container port. Per these contracts, the company will provide civil, structural, and marine engineering consulting as well as design services for the JAXPORT. Each contract spans three years, with renewals possible for two additional one-year periods.

Jacobs will partner with JAXPORT to maintain, enhance and expand the port's three cargo terminals and one passenger cruise terminal, which may involve wharfs, docks, berths, bulkheads, dock-piles and other similar facilities for their terminal structures.

Moreover, the company will provide civil and structural support that includes planning, design, construction and similar services for buildings, roads, bridges, as well as rails.

JAXPORT is expanding its shipping channel to accommodate more cargo aboard the larger ships calling on them from destinations throughout Asia and other world markets through both the Panama and Suez canals.

Tom Meinhart, the senior vice president of Jacobs’ People & Places Solutions or P&PS, said, "This contract gives us the opportunity to help them meet the needs of their growing operations, but more importantly contribute to their critical role as a major economic engine in Northeast Florida."

P&PS Business: A Growth Driver

Jacobs’ P&PS business — which accounted for almost 65% of total revenues — serves clients of broad sectors like water, transportation, building and semiconductors.

Recently, Jacobs received a management, appraisal, modelling and design contract from Affinity Water to support the latter’s river restoration schemes across the catchments in England.

Also, the company — via the P&PS business segment — received a contract from the Los Angeles County Metropolitan Transportation Authority (LA Metro) to design and manage the solid waste, recycling and hazardous waste compliance program. Jacobs’ support will enable LA Metro in achieving its zero-waste goal in the transportation industry, without compromising on efficient and effective movement of people.

Efficient project execution has been primarily driving Jacobs’ performance over the last few quarters. The company’s solid backlog level reflects continued strong demand for consulting services. Backlog at fiscal third quarter-end was $23.7 billion, reflecting an increase of 5.4% year over year (up 4% on a pro-forma basis). This reflects persistently solid demand for Jacobs' consulting services. Notably, P&PS backlog was up 4.3% year over year for the quarter to $14.6 billion.

Share Price Performance

Its shares have outperformed the industry in the year-to-date period. The solid price performance was backed by an impressive earnings surprise history. The company surpassed earnings estimates in 10 of the trailing 12 quarters. The trend is expected to continue in the near term, courtesy of its solid performance for the first nine months of fiscal 2020 despite disruptions caused by the COVID-19 outbreak.

 

Zacks Rank

Jacobs — which shares space with Quanta Services, Inc. (PWR - Free Report) , AECOM (ACM - Free Report) and KBR, Inc. (KBR - Free Report) in the same industry — currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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