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AECOM (ACM) Secures Multiple-Award IDIQ Contract From USPS

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AECOM (ACM - Free Report) recently announced the receipt of an indefinite delivery, indefinite quantity (“IDIQ”) contract to provide management services to U.S. Postal Service (“USPS”). This multiple-award contract has three base years that can be extended up to another four option years. The contract has a maximum ceiling value of $600 million.

Per the contract, AECOM is responsible for the program and project management, architectural and engineering design, construction management, and environmental services to refurbish USPS’ vast facilities portfolio.

Earlier, AECOM has served the USPS at more than 2000 facilities. The company provided management and environmental support under the IDIQ contracts for various facilities, including the maintenance of network distribution centers, processing and distribution centers, retail mail facilities, vehicle and post offices.

With respect to this, AECOM's President, Technology, Lara Poloni, said, “For more than thirty years, AECOM has brought together technical leaders across our business to provide the USPS with unparalleled expertise, delivering on our commitment to quality, consistency, and safety.”

Americas Segment Driving Performance

Americas — which consists of the company’s business in the United States, Canada and Latin America — accounted for 76.5% of fiscal 2020 revenues. The company is witnessing strong prospects in this segment. During first-quarter fiscal 2021, revenues in the segment were up 4.3% year over year to $2,557.3 million.

AECOM is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government as well as those in environmental, energy and water businesses. Most of the U.S. government’s broad infrastructural plan is focused on the transit and water markets wherein AECOM enjoys a dominant position.

Its shares have surged 33.4% so far this year compared with the Zacks Engineering - R and D Services industry’s 22.9% rally. The solid price performance was backed by an impressive earnings surprise history. The company surpassed earnings estimates in 11 of the trailing 13 quarters. The positive trend is expected to continue in the near term, courtesy of its solid backlog and continuous investment that is focused both on growth and innovation.

Zacks Rank & Key Picks

AECOM currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same industry include Howmet Aerospace Inc. (HWM - Free Report) , Jacobs Engineering Group Inc. (J - Free Report) and Altair Engineering Inc. (ALTR - Free Report) . Howmet Aerospace carries a Zacks #1 Rank (Strong Buy), while Jacobs and Altair each sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Jacobs’ fiscal 2021 earnings are expected to rise 5.1%.

Howmet Aerospace and Altair are expected to witness 15% and 45.2% earnings growth in 2021, respectively.

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