Back to top

Image: Bigstock

KBR Receives $300 Million Recompete to Support EROS Center

Read MoreHide Full Article

KBR, Inc. (KBR - Free Report) has received a recompete contract for providing scientific, engineering and technical services to the U.S. Geological Survey's (USGS) Earth Resources Observation and Science or EROS Center. This cost-plus-fixed-fee contract is valued at $300 million.

Under the five-year contract, KBR will partner with USGS to analyze the changes to the Earth's landscape. KBR will also help determine wildfire risk, collaborate with other programs to predict famine and prevent food insecurity, as well as study the impacts of coastal change.

The company will perform satellite systems engineering, software development, cybersecurity, data storage, program management, network engineering, satellite data acquisition, and scientific research as well as application development for remote sensing data. KBR will primarily perform the contract work in Sioux Falls, South Dakota.

Notably, KBR has been supporting the center since 2008. With this collaboration, it intends to ensure the success of critical next generation programs such as Landsat Next and the Land Change Monitoring, Assessment and Projection initiative.

Sustainable Technologies to Drive Growth

KBR is a global provider of differentiated professional services and solutions. Shares of KBR have outperformed the industry over the past month. The company’s performance was backed by solid contract wining spree, strong project execution, backlog level, and potential government and technology businesses. It has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing 11 quarters. Meanwhile, revenues topped the consensus mark in each of the trailing eight quarters.

The company’s high-end, technically differentiated businesses supporting space superiority, science and systems engineering have been driving growth. Owing to solid performance for the first nine months of 2020, KBR lifted its adjusted earnings per share guidance to $1.60-$1.80 from $1.50-$1.80 of earlier expectation during the recent third-quarter 2020 earnings call. Moreover, it raised its adjusted operating cash flow guidance to $2.70-$290 million from $210-$250 million expected earlier.

Zacks Rank

KBR — which shares space with Fluor Corporation (FLR - Free Report) , Jacobs Engineering Group Inc. (J - Free Report) and AECOM (ACM - Free Report) in the same industry — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Legal Marijuana: An Investor’s Dream

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.

Download Marijuana Moneymakers FREE >>

In-Depth Zacks Research for the Tickers Above

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

AECOM (ACM) - free report >>

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

Fluor Corporation (FLR) - free report >>

Jacobs Engineering Group Inc. (J) - free report >>