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Contract Wins for Jacobs

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Construction and engineering company, Jacobs Engineering Group Inc. (JEC - Free Report) , won contracts recently, maintaining its strong momentum of deal wins. The first contract was awarded by the Volpe National Transportation Systems Center. The contract entails Jacobs to provide monitoring and technical assistance for the Federal Railroad Administration Grant and Loan Program. The maximum worth of the contract is $70 million.

The second contract was awarded by Suncor Energy Services Inc. The oil sands and plant services contract was awarded for Suncor’s Fort McMurray Base Plant, located in Alberta, Canada.

The value of the 2-year contract has not been disclosed. Per the contract, Jacobs will help in the maintenance of the plant’s process, through mechanical, rotating and operating equipment.

Along with these, the company received another contract. The third contract was awarded to Jacobs’ joint venture, TASK JV, between recently-acquired Sinclair Knight Merz and Thiess. The contract, awarded by Water Corporation of Western Australia, entails TASK JV to design, construct and commission the East Rockingham Wastewater Treatment Plant near Perth, Australia.

The continuous contract wins by the company will increase revenues in the coming quarters. Additionally, the strong customer relationships maintained by the company also help it to generate higher revenues.

Recently, Jacobs reported its results for the first quarter of fiscal 2014. Adjusted earnings per share in the reported quarter were 76 cents, flat with the year-ago quarter. Revenues were $3.07 billion, up 11.2% year over year but slightly lower than the Zacks Consensus Estimate of $3.09 billion.

With a market capitalization of $8.3 billion, Jacobs carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry worth a watch include Fluor Corporation (FLR - Free Report) , Quanta Services, Inc. (PWR - Free Report) and Beazer Homes USA Inc. (BZH - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).

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