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Jacobs (J) Wins 4-Year NDA Contract for Asset Management Role
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Jacobs Engineering Group Inc. (J - Free Report) has received a four-year contract from the Nuclear Decommissioning Authority (“NDA”) in the U.K. to facilitate asset management solutions.
Per the contract, Jacobs and its strategic supplier, PA Consulting, will assist the NDA on the execution of its asset management plan. They will incorporate new digital decision-making tools to enhance efficiency and reduce operational costs on nuclear-licensed sites in the NDA estate.
NDA is the public body in charge of cleaning up legacy facilities in the U.K and decommissioning 17 nuclear sites across England, Wales as well as Scotland. Jacobs and PA Consulting have been working with Sellafield Ltd in Europe to present a new tactic to asset management through use of digital decision-making tools. This will improve the reliability and availability of critical assets like utilities, cranes and batteries with the installation of sensors on the equipment to record data. A digital twin generates information to enhance decision making for managing equipment more efficiently and at lower cost.
Jacobs’ Critical Mission Solutions or CMS International Senior Vice President Clive White said, “We are deploying tactical delivery capability to support the NDA's implementation of its asset management strategy."
Solid Project Execution: A Boon
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. For the fiscal second quarter, it reported a backlog of $15.5 billion, up 9.6% year over year. This reflects persistent solid demand for Jacobs' consulting services. CMS backlog grew 7% year over year and 6% on a pro-forma basis to $9.8 billion for the fiscal second quarter, which provided a strong visibility into the base business. The company’s overall 18-month qualified new business pipeline of more than $30 billion remains robust. This segment is benefiting from well-funded government programs and cyber, U.S. Department of Defense or DoD, mission-IT, space, nuclear, as well as 5G-related projects.
Increased focus on backlog, acquisitions and efforts to concentrate on high-value business is benefiting the company. Second-quarter fiscal 2021 revenues grew 3.5% and adjusted EBITDA increased 27% year over year. Net revenues (excluding pass-through revenues) also rose 6.7% year over year. Given the strong momentum, Jacobs lifted its adjusted EBITDA and EPS guidance during fiscal second-quarter earnings call.
Buoyed by first-half fiscal 2021 performance and closing of investment in PA Consulting, Jacobs lifted its adjusted EBITDA and EPS guidance for fiscal 2021. Jacobs now expects adjusted EBITDA between $1,200 million and $1,270 million compared with the prior estimate of $1,075-$1,155 million. Also, it now anticipates adjusted earnings within $6.00-$6.30 per share compared with the earlier estimate of $5.30-$6.00.
The company expects PA Consulting to generate double-digit revenue growth for the fiscal year. Beyond fiscal 2021, it expects multiple secular growth drivers and efficiency gains, which in turn are likely to support double-digit earnings growth.
Shares of Jacobs, a Zacks Rank #2 (Buy) company, have advanced 77.4% over the past year compared with the Zacks Engineering - R and D Services industry’s 103.2% rally. Nonetheless, earnings estimates for the current fiscal year have increased 4.3% over the past 30 days to $6.11 per share, indicating 11.5% year-over-year growth. This ensures impressive growth visibility. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other top-ranked stocks in the same space include ChampionX Corporation (CHX - Free Report) , Gates Industrial Corporation PLC (GTES - Free Report) and Howmet Aerospace Inc. (HWM - Free Report) , each carrying a Zacks Rank #2.
Earnings for ChampionX, Gates Industrial and Howmet Aerospace are expected to grow 400%, 77.1% and 20% for the current year, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Jacobs (J) Wins 4-Year NDA Contract for Asset Management Role
Jacobs Engineering Group Inc. (J - Free Report) has received a four-year contract from the Nuclear Decommissioning Authority (“NDA”) in the U.K. to facilitate asset management solutions.
Per the contract, Jacobs and its strategic supplier, PA Consulting, will assist the NDA on the execution of its asset management plan. They will incorporate new digital decision-making tools to enhance efficiency and reduce operational costs on nuclear-licensed sites in the NDA estate.
NDA is the public body in charge of cleaning up legacy facilities in the U.K and decommissioning 17 nuclear sites across England, Wales as well as Scotland. Jacobs and PA Consulting have been working with Sellafield Ltd in Europe to present a new tactic to asset management through use of digital decision-making tools. This will improve the reliability and availability of critical assets like utilities, cranes and batteries with the installation of sensors on the equipment to record data. A digital twin generates information to enhance decision making for managing equipment more efficiently and at lower cost.
Jacobs’ Critical Mission Solutions or CMS International Senior Vice President Clive White said, “We are deploying tactical delivery capability to support the NDA's implementation of its asset management strategy."
Solid Project Execution: A Boon
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. For the fiscal second quarter, it reported a backlog of $15.5 billion, up 9.6% year over year. This reflects persistent solid demand for Jacobs' consulting services. CMS backlog grew 7% year over year and 6% on a pro-forma basis to $9.8 billion for the fiscal second quarter, which provided a strong visibility into the base business. The company’s overall 18-month qualified new business pipeline of more than $30 billion remains robust. This segment is benefiting from well-funded government programs and cyber, U.S. Department of Defense or DoD, mission-IT, space, nuclear, as well as 5G-related projects.
Increased focus on backlog, acquisitions and efforts to concentrate on high-value business is benefiting the company. Second-quarter fiscal 2021 revenues grew 3.5% and adjusted EBITDA increased 27% year over year. Net revenues (excluding pass-through revenues) also rose 6.7% year over year. Given the strong momentum, Jacobs lifted its adjusted EBITDA and EPS guidance during fiscal second-quarter earnings call.
Buoyed by first-half fiscal 2021 performance and closing of investment in PA Consulting, Jacobs lifted its adjusted EBITDA and EPS guidance for fiscal 2021. Jacobs now expects adjusted EBITDA between $1,200 million and $1,270 million compared with the prior estimate of $1,075-$1,155 million. Also, it now anticipates adjusted earnings within $6.00-$6.30 per share compared with the earlier estimate of $5.30-$6.00.
The company expects PA Consulting to generate double-digit revenue growth for the fiscal year. Beyond fiscal 2021, it expects multiple secular growth drivers and efficiency gains, which in turn are likely to support double-digit earnings growth.
Shares of Jacobs, a Zacks Rank #2 (Buy) company, have advanced 77.4% over the past year compared with the Zacks Engineering - R and D Services industry’s 103.2% rally. Nonetheless, earnings estimates for the current fiscal year have increased 4.3% over the past 30 days to $6.11 per share, indicating 11.5% year-over-year growth. This ensures impressive growth visibility. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other top-ranked stocks in the same space include ChampionX Corporation (CHX - Free Report) , Gates Industrial Corporation PLC (GTES - Free Report) and Howmet Aerospace Inc. (HWM - Free Report) , each carrying a Zacks Rank #2.
Earnings for ChampionX, Gates Industrial and Howmet Aerospace are expected to grow 400%, 77.1% and 20% for the current year, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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