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Jacobs (JEC) Wins Contract for Wapiti Gas Plant Expansion
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Jacobs Engineering Group Inc. won an engineering services contract for Keyera's Wapiti Gas Plant Phase Two expansion. The second phase covers an additional processing of 150 million cubic feet of sour gas per day to the plant (currently under construction) near Grande Prairie, Alberta, Canada.
The new facility will likely process up to 300 million cubic feet of sour gas and 25,000 barrels of field condensate per day upon the successful completion of the two phases of the project. The second phase is expected to be completed by mid-2020 at a total installed cost of $150 million.
Jacobs had already engineered the first phase of the project and is ready to design the next one as well, which will boost Keyera’s capacity in the liquids-rich Montney region of northwestern Alberta. Notably, Keyera is one of the largest midstream oil and gas operators in Canada.
Jacobs has been performing well, generating higher revenues courtesy of ongoing contract wins, increased focus on high-value businesses and efficient project execution. Recently, the company posted stellar third quarter of fiscal 2018 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate by 4.3% and 13.4%, respectively. Earnings also increased by a significant 71% from the year-ago figure of 79 cents. On the other hand, its revenues totaled $4,156.7 million, reflecting healthy growth of 65.3% from the year-ago quarter. The improvement was driven by healthy segmental businesses, accelerated CH2M cost savings along with prudent strategy execution.
Meanwhile, the company’s backlog at the end of the quarter was $27.2 billion, increasing 47% year over year.
Share Price Performance
Shares of Jacobs, a Zacks Rank #2 (Buy) company, have broadly outperformed the industry so far this year. Its shares have gained 10.5% in the said time frame against its industry’s decline of 8.3%. The outperformance was backed by a solid earnings surprise history, beating the consensus mark in each of the trailing four quarters, with an average of 15.38%.
While earnings estimates for fiscal 2018 have moved north by 2.3% over the past 30 days, the same was revised 2.8% higher for the next fiscal. The company’s earnings per share are expected to grow 34.6% for fiscal 2018 and 18.6% for fiscal 2019. Notably, Jacobs currently flaunts a VGM Score of B.
Comfort Systems’ earnings surpassed the consensus estimate in three of the trailing four quarters, with an average positive surprise of 11.2%.
Earnings for Gates Industrial are expected to increase 42.2% for 2018.
KBR surpassed earnings estimates in three of the past four quarters, resulting in an average positive surprise of 12.26%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Jacobs (JEC) Wins Contract for Wapiti Gas Plant Expansion
Jacobs Engineering Group Inc. won an engineering services contract for Keyera's Wapiti Gas Plant Phase Two expansion. The second phase covers an additional processing of 150 million cubic feet of sour gas per day to the plant (currently under construction) near Grande Prairie, Alberta, Canada.
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The new facility will likely process up to 300 million cubic feet of sour gas and 25,000 barrels of field condensate per day upon the successful completion of the two phases of the project. The second phase is expected to be completed by mid-2020 at a total installed cost of $150 million.
Jacobs had already engineered the first phase of the project and is ready to design the next one as well, which will boost Keyera’s capacity in the liquids-rich Montney region of northwestern Alberta. Notably, Keyera is one of the largest midstream oil and gas operators in Canada.
Jacobs has been performing well, generating higher revenues courtesy of ongoing contract wins, increased focus on high-value businesses and efficient project execution. Recently, the company posted stellar third quarter of fiscal 2018 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate by 4.3% and 13.4%, respectively. Earnings also increased by a significant 71% from the year-ago figure of 79 cents. On the other hand, its revenues totaled $4,156.7 million, reflecting healthy growth of 65.3% from the year-ago quarter. The improvement was driven by healthy segmental businesses, accelerated CH2M cost savings along with prudent strategy execution.
Meanwhile, the company’s backlog at the end of the quarter was $27.2 billion, increasing 47% year over year.
Share Price Performance
Shares of Jacobs, a Zacks Rank #2 (Buy) company, have broadly outperformed the industry so far this year. Its shares have gained 10.5% in the said time frame against its industry’s decline of 8.3%. The outperformance was backed by a solid earnings surprise history, beating the consensus mark in each of the trailing four quarters, with an average of 15.38%.
While earnings estimates for fiscal 2018 have moved north by 2.3% over the past 30 days, the same was revised 2.8% higher for the next fiscal. The company’s earnings per share are expected to grow 34.6% for fiscal 2018 and 18.6% for fiscal 2019. Notably, Jacobs currently flaunts a VGM Score of B.
Other Stocks to Consider
Other top-ranked stocks in the sector are Comfort Systems USA, Inc. (FIX - Free Report) , Gates Industrial Corporation plc (GTES - Free Report) and KBR, Inc. (KBR - Free Report) . While Comfort Systems and Gates Industrial sport a Zacks Rank #1 (Strong Buy), KBR carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Comfort Systems’ earnings surpassed the consensus estimate in three of the trailing four quarters, with an average positive surprise of 11.2%.
Earnings for Gates Industrial are expected to increase 42.2% for 2018.
KBR surpassed earnings estimates in three of the past four quarters, resulting in an average positive surprise of 12.26%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>