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Jacobs, Turner & Townsend Win $320M UK Defence Contract
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Jacobs Engineering Group Inc. , together with Turner & Townsend has secured a contract with the United Kingdom Ministry of Defence for the U.K.'s Defence Equipment and Support or DE&S program. The contract is valued up to $320 million.
Per the contract, Jacobs and Turner & Townsend will manage projects for DE&S, part of the country's ministry of defence. Jacobs will aid in temporary project management and provide logistics support to improve procurement. DE&S provides a wide range of projects to buy and support equipment and services that the U.K. Armed Forces need to operate efficiently.
Jacob’s Strong Government Customers Bode Well
Jacobs is benefiting major government customers across the U.S. Department of Defense, Department of Energy, intelligence community and NASA. Importantly, the company’s Aerospace, Technology, Environmental and Nuclear or ATEN business is executing well and is positioned to deliver a double-digit increase in profits on a year-over-year basis in fiscal 2018, with continued strong growth in 2019 as well. These positives are likely to continue driving Jacobs’ bottom line in the upcoming quarters.
Revenues from the ATEN segment increased 100% year over year in the third quarter of fiscal 2018 (ended Jun 29, 2018). It represented 29.4% of the reported quarter’s total revenues. Backlog at the end of the quarter was roughly $8.9 billion, up 57.2% year over year.
Share Price Performance . Shares of Jacobs have broadly outperformed the industry over the past year. The company’s shares have gained 33.4% compared with its industry’s 4.3% growth in the said period. The outperformance was backed by a solid earnings surprise history, having surpassed the consensus mark in each of the trailing four quarters, with an average of 15.4%. Jacobs has been delivering robust performance, given its efficient project execution. The company’s ongoing contract wins are a testimony to the fact.
Jacobs, a Zacks Rank #2 (Buy) company, expects the trend to continue, driven by strong demand across both ATEN as well as Buildings, Infrastructure and Advanced Facilities or BIAF line of businesses.
Comfort Systems’ earnings surpassed the consensus estimate in three of the trailing four quarters, delivering an average positive surprise of 11.2%.
KBR surpassed earnings estimates in three of the past four quarters, resulting in an average positive surprise of 12.26%.
Earnings for Gates Industrial are expected to increase 42.2% in 2018.
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Jacobs, Turner & Townsend Win $320M UK Defence Contract
Jacobs Engineering Group Inc. , together with Turner & Townsend has secured a contract with the United Kingdom Ministry of Defence for the U.K.'s Defence Equipment and Support or DE&S program. The contract is valued up to $320 million.
Per the contract, Jacobs and Turner & Townsend will manage projects for DE&S, part of the country's ministry of defence. Jacobs will aid in temporary project management and provide logistics support to improve procurement. DE&S provides a wide range of projects to buy and support equipment and services that the U.K. Armed Forces need to operate efficiently.
Jacob’s Strong Government Customers Bode Well
Jacobs is benefiting major government customers across the U.S. Department of Defense, Department of Energy, intelligence community and NASA. Importantly, the company’s Aerospace, Technology, Environmental and Nuclear or ATEN business is executing well and is positioned to deliver a double-digit increase in profits on a year-over-year basis in fiscal 2018, with continued strong growth in 2019 as well. These positives are likely to continue driving Jacobs’ bottom line in the upcoming quarters.
Revenues from the ATEN segment increased 100% year over year in the third quarter of fiscal 2018 (ended Jun 29, 2018). It represented 29.4% of the reported quarter’s total revenues. Backlog at the end of the quarter was roughly $8.9 billion, up 57.2% year over year.
Share Price Performance
.
Shares of Jacobs have broadly outperformed the industry over the past year. The company’s shares have gained 33.4% compared with its industry’s 4.3% growth in the said period. The outperformance was backed by a solid earnings surprise history, having surpassed the consensus mark in each of the trailing four quarters, with an average of 15.4%. Jacobs has been delivering robust performance, given its efficient project execution. The company’s ongoing contract wins are a testimony to the fact.
Jacobs, a Zacks Rank #2 (Buy) company, expects the trend to continue, driven by strong demand across both ATEN as well as Buildings, Infrastructure and Advanced Facilities or BIAF line of businesses.
Other Stocks to Consider
Other top-ranked stocks from the Construction sector include Comfort Systems USA, Inc. (FIX - Free Report) , KBR, Inc. (KBR - Free Report) and Gates Industrial Corporation plc (GTES - Free Report) . While Comfort Systems and KBR sport a Zacks Rank #1 (Strong Buy), Gates Industrial 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, delivering an average positive surprise of 11.2%.
KBR surpassed earnings estimates in three of the past four quarters, resulting in an average positive surprise of 12.26%.
Earnings for Gates Industrial are expected to increase 42.2% in 2018.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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