Back to top

Analyst Blog

Construction and engineering company, Jacobs Engineering Group Inc. (JEC - Analyst Report), won contracts recently, maintaining its strong momentum of deal wins. The first contract was awarded by the Volpe National Transportation Systems Center. The contract entails Jacobs to provide monitoring and technical assistance for the Federal Railroad Administration Grant and Loan Program. The maximum worth of the contract is $70 million.

The second contract was awarded by Suncor Energy Services Inc. The oil sands and plant services contract was awarded for Suncor’s Fort McMurray Base Plant, located in Alberta, Canada.

The value of the 2-year contract has not been disclosed. Per the contract, Jacobs will help in the maintenance of the plant’s process, through mechanical, rotating and operating equipment.

Along with these, the company received another contract. The third contract was awarded to Jacobs’ joint venture, TASK JV, between recently-acquired Sinclair Knight Merz and Thiess. The contract, awarded by Water Corporation of Western Australia, entails TASK JV to design, construct and commission the East Rockingham Wastewater Treatment Plant near Perth, Australia.

The continuous contract wins by the company will increase revenues in the coming quarters. Additionally, the strong customer relationships maintained by the company also help it to generate higher revenues.

Recently, Jacobs reported its results for the first quarter of fiscal 2014. Adjusted earnings per share in the reported quarter were 76 cents, flat with the year-ago quarter. Revenues were $3.07 billion, up 11.2% year over year but slightly lower than the Zacks Consensus Estimate of $3.09 billion.

With a market capitalization of $8.3 billion, Jacobs carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry worth a watch include Fluor Corporation (FLR - Analyst Report), Quanta Services, Inc. (PWR - Analyst Report) and Beazer Homes USA Inc. (BZH - Snapshot Report). All these stocks carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SYNAPTICS I… SYNA 78.11 +8.14%
CENTURY ALU… CENX 19.88 +5.74%
GREEN PLAIN… GPRE 39.41 +5.12%
PILGRIM'S P… PPC 28.82 +3.08%
THE PANTRY… PTRY 18.41 +2.79%