Back to top

Image: Bigstock

Jacobs Secures Position on Highways England's TA Framework

Read MoreHide Full Article

Jacobs Engineering Group Inc. (J - Free Report) has secured a place on Highways England's Technical Advisor (“TA”) Framework related to the Roads Investment Strategy (“RIS”) 2 program for the strategic road network in England.

It should provide support in the development, design and construction of capital road projects in the RIS 2 program. The company has been appointed by Highways England for Lot 4 (South West and Midlands) of the Regional Delivery Partnership TA Framework.

Jacobs People & Places Solutions or PPS U.K./Europe senior vice president and general manager and global executive sponsor of Digital Strategies Donald Morrison said, "Jacobs and Highways England have a long-established relationship and this award provides an excellent opportunity to continue assisting them in the Regional Delivery Partnership as Technical Advisor."

Highways England — a government organization — is entitled to planning, improving, managing, operating and maintaining England's Strategic Road Network that consists of more than 4,300 miles of motorways as well as major A roads connecting the country, and drives economic growth.

Now, Jacobs — as a Technical Advisor — will work closely with the Regional Delivery Integration Partner to help Highways England in successfully carrying out the project. The company’s scope of work under the framework includes economic evaluation, route decision, technical assurance and supervision of capital road projects.

Solid Project Execution: A Boon

Jacobs provides a wide array of professional services that include consulting, technical, scientific and project delivery for the government and private sectors. The company’s solid backlog level reflects persistently strong demand for consulting services.

Efficient project execution has been one of the main characteristics driving Jacobs’ performance over the last few quarters. The company’s ongoing contract wins are a testimony to the fact. 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 persistent solid demand for Jacobs' consulting services. Notably, PPS backlog was up 4.3% year over year for the quarter to $14.6 billion.

Last month, Jacobs reported third-quarter fiscal 2020 (ended Jun 26, 2020) results, wherein earnings and revenues beat the respective Zacks Consensus Estimate, courtesy of solid project execution. Meanwhile, the company raised its adjusted EBITDA and EPS guidance for fiscal 2020, based on improved performance so far this year.

Although coronavirus-related disruptions are likely to hurt Jacobs’ performance in the fiscal fourth quarter and create challenges in early fiscal 2021, it raised its adjusted EBITDA and EPS guidance for fiscal 2020, based on its fiscal third-quarter performance and initial view for the fiscal fourth quarter.

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 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 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.  

Click here for the 6 trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Quanta Services, Inc. (PWR) - free report >>

AECOM (ACM) - free report >>

KBR, Inc. (KBR) - free report >>

Jacobs Solutions Inc. (J) - free report >>

Published in