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Jacobs (J) Secures 13 Seats on TfL's Services Framework

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Jacobs Engineering Group Inc. (J - Free Report) has secured 13 positions on Transport for London's (TfL) renewed Transport Planning & Impact Monitoring Services Framework. TfL expects the framework to operate for a maximum four-year period, with immediate contract mobilization.

These lots have important service areas like strategic modelling and bespoke analysis, prudent transport scheme planning and design, along with transport as well as environmental assessment.

Jacobs’ People & Places Solutions (P&PS) senior vice president Europe and digital strategies Donald Morrison said, "Through this framework, we look forward to bringing our latest thinking and technological advances to help TfL understand the key drivers of changing trends and the prioritization of schemes based on their environment, societal and economic impact."

Notably, Jacobs has been providing support toTfL that includes examining environmental, health, equality, economic and business effects of London's ULEZ ahead of its launch in 2020. The company has also been assisting in the project EDMOND (Estimating Demand using Mobile Network Data) to provide a comprehensive view of travel patterns; and project, program and portfolio management as well as other services under TfL's Professional Services Framework.

Jacobs’ Contract-Winning Spree Bodes Well

Efficient project execution has primarily been driving Jacobs’ performance over the last few quarters. This Zacks Rank #3 (Hold) company’s ongoing contract wins are a testimony to the fact. Backlog at fiscal 2020-end was $23.8 billion, reflecting an increase of 5.5% year over year (up 3% on a pro-forma basis). This reflects persistent solid demand for Jacobs' consulting services. Notably, P&PS backlog was up 4.2% year over year for the fiscal fourth quarter to $14.7 billion. Overall, the backlog growth can be attributed to the company’s capitalizing on CH2M and KeyW revenue synergies. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The P&PS business — which accounted for 63.4% of total fiscal 2020 revenues — serves clients of broad sectors like water, transportation, building and semiconductors. The segment has been a major growth driver of its revenues.

Jacobs’ shares have outperformed the Zacks Engineering - R and D Services industry in the past year. The price performance was backed by an impressive earnings surprise history. The company — which shares space with Gates Industrial Corporation plc (GTES - Free Report) , Quanta Services, Inc. (PWR - Free Report) and AECOM (ACM - Free Report) in the same industry — surpassed earnings estimates in 11 of the trailing 13 quarters. The trend is expected to continue in the near term, courtesy of its solid performance for fiscal 2020 despite disruptions caused by the COVID-19 outbreak. It is also likely to gain from increased focus on infrastructure, aerospace, cybersecurity and technical building projects.

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