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Jacobs Wins 4-Year Framework From LLW Repository, Boosts CMS
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Jacobs Engineering Group Inc. (J - Free Report) has won a contract from LLW Repository Ltd (LLWR) to provide infrastructure program support for low-level waste repository in U.K.
Per the four-year framework, Jacobs will offer technical services at U.K.'s national disposal facility for low-level radioactive waste. It will act as sole service provider on the Repository Infrastructure Framework.
According to Jacobs’ Critical Mission Solutions or CMS business senior vice president Clive White, "Securing this framework also allows us to enhance our socio-economic contribution in West Cumbria, where we recently opened a new engineering development center to develop innovative solutions and technologies that will enhance our work for LLWR."
Jacobs’ scope of work includes developing strategies for appropriate storage solutions, control and electronic systems enhancement, along with other technical services underpinned by core engineering design, construction and program/project management capabilities.
Stellar Performance & Strong Backlog Bode Well
Jacobs’ shares have outperformed the industry in the year-to-date period. The price performance is backed by an impressive earnings surprise history. The company surpassed earnings estimates in nine of the trailing 11 quarters. The trend is expected to continue in the near term, courtesy of its solid fiscal 2019 and first-half fiscal 2020 performance.
Jacobs registered stellar growth in first-half fiscal 2020. Adjusted earnings from continuing operations came in at $2.59 per share, reflecting an increase of 18.8% year over year. Revenues were $6.79 billion, increasing 9.9% from a year ago. Adjusted operating margin increased more than 30 basis points year over year to 8.69%. Although coronavirus-related disruptions are likely to hurt Jacobs in the fiscal third quarter, it expects adjusted EBITDA and EPS growth in fiscal 2021.
Overall, the company has a robust pipeline of opportunities across all businesses, as it has started to realize synergies from CH2M and KeyW buyouts. In fact, backlog at fiscal second quarter-end was $23.3 billion, reflecting an increase of 12.5% year over year (up 5% on a pro-forma basis). This reflects persistently solid demand for Jacobs' consulting services. Precisely, CMS backlog — which grew 25.4% year over year to $9.1 billion in the fiscal second quarter — provides strong visibility into the base business. The company’s overall 2021 sales pipeline of more than $37 billion remains robust. This segment is benefiting from well-funded government programs and cyber, mission-IT, space, as well as 5G-related projects.
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Jacobs Wins 4-Year Framework From LLW Repository, Boosts CMS
Jacobs Engineering Group Inc. (J - Free Report) has won a contract from LLW Repository Ltd (LLWR) to provide infrastructure program support for low-level waste repository in U.K.
Per the four-year framework, Jacobs will offer technical services at U.K.'s national disposal facility for low-level radioactive waste. It will act as sole service provider on the Repository Infrastructure Framework.
According to Jacobs’ Critical Mission Solutions or CMS business senior vice president Clive White, "Securing this framework also allows us to enhance our socio-economic contribution in West Cumbria, where we recently opened a new engineering development center to develop innovative solutions and technologies that will enhance our work for LLWR."
Jacobs’ scope of work includes developing strategies for appropriate storage solutions, control and electronic systems enhancement, along with other technical services underpinned by core engineering design, construction and program/project management capabilities.
Stellar Performance & Strong Backlog Bode Well
Jacobs’ shares have outperformed the industry in the year-to-date period. The price performance is backed by an impressive earnings surprise history. The company surpassed earnings estimates in nine of the trailing 11 quarters. The trend is expected to continue in the near term, courtesy of its solid fiscal 2019 and first-half fiscal 2020 performance.
Jacobs registered stellar growth in first-half fiscal 2020. Adjusted earnings from continuing operations came in at $2.59 per share, reflecting an increase of 18.8% year over year. Revenues were $6.79 billion, increasing 9.9% from a year ago. Adjusted operating margin increased more than 30 basis points year over year to 8.69%. Although coronavirus-related disruptions are likely to hurt Jacobs in the fiscal third quarter, it expects adjusted EBITDA and EPS growth in fiscal 2021.
Overall, the company has a robust pipeline of opportunities across all businesses, as it has started to realize synergies from CH2M and KeyW buyouts. In fact, backlog at fiscal second quarter-end was $23.3 billion, reflecting an increase of 12.5% year over year (up 5% on a pro-forma basis). This reflects persistently solid demand for Jacobs' consulting services. Precisely, CMS backlog — which grew 25.4% year over year to $9.1 billion in the fiscal second quarter — provides strong visibility into the base business. The company’s overall 2021 sales pipeline of more than $37 billion remains robust. This segment is benefiting from well-funded government programs and cyber, mission-IT, space, as well as 5G-related projects.
Zacks Rank
Jacobs — which shares space with AECOM (ACM - Free Report) , Quanta Services, Inc. (PWR - Free Report) and Fluor Corporation (FLR - Free Report) in the same industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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