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KBR Wins $58.1M Follow-on Task Order From U.S. Air Force
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In a bid to increase the reliability and maintainability of warfighter systems, KBR, Inc. (KBR - Free Report) has received a $58.1-million follow-on task order from the U.S. Air Force.
Per this cost-plus-fixed-fee IDIQ contract, KBR will continue providing sustainment engineering services to the Digital Directorate's Air Traffic Control and Landings Systems’ Sustainment Branch. Also, it will carry out research and analysis on reliability, obsolescence, non-destructive inspection and non-destructive testing techniques, system degradation, structures, corrosion as well as system sustainability. Notably, KBR will provide these services at Oklahoma and other locations for the next five years.
Since 2005, the company has been performing similar duties for the Air Force. In fact, it keeps on offering scientific, engineering and technical solutions to advance defense as well as national security interests on land, at sea, in the air, space and cyberspace. Impressively, KBR provides the DoD with one of the largest independent flight test organizations in the world.
Solid Backlog Level & Share Performance
As of Mar 31, 2021, total backlog was $14.6 billion compared with $15.1 billion at 2020-end. Of the total backlog, Government Solutions booked $12.3 billion. Sustainable Technology Solutions segment accounted for $2.3 billion of the total backlog.
KBR’s shares have gained 5.6% in the past three months, almost in line with the industry’s 6% growth. Also, earnings estimates for 2021 have moved up 0.5% over the past 60 days, depicting analysts' optimism over bottom-line growth potential. The Zacks Consensus Estimate for the Zacks Rank #3 (Hold) company’s 2021 earnings indicates a 22% increase from 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
KBR’s solid prospects are backed by continuous contract wins, strong project execution, backlog level, and potential government as well as technology businesses. Effective Jan 1, 2021, it implemented a strategic change and transitioned from a three-core business segment model to a two-core business segment model comprised Government Solutions and Sustainable Technology Solutions.
The Government Solutions business is one of the major contributing units of KBR — which shares space with AECOM (ACM - Free Report) , Jacobs Engineering Group Inc. (J - Free Report) and Quanta Services Inc. (PWR - Free Report) in the Zacks Engineering - R and D Services industry. The business has been riding on on-contract growth in logistics and engineering, take-away wins alongside new work awarded under the company’s portfolio of well-positioned contracting vehicles.
Robust contribution from KBR’s overseas logistics and mission support programs on the back of higher military exercise activities, increased outsourcing of sustainment activities by the military and ramp up of new wins led to the growth. Notably, higher tasking for various missile defense and other military priorities in its engineering business areas — under select IDIQ contracts — are other major positives. The company anticipates strong growth across all key markets in the United States, U.K. and Australia, primarily attributable to persistent opportunities across the project’s lifecycle.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
KBR Wins $58.1M Follow-on Task Order From U.S. Air Force
In a bid to increase the reliability and maintainability of warfighter systems, KBR, Inc. (KBR - Free Report) has received a $58.1-million follow-on task order from the U.S. Air Force.
Per this cost-plus-fixed-fee IDIQ contract, KBR will continue providing sustainment engineering services to the Digital Directorate's Air Traffic Control and Landings Systems’ Sustainment Branch. Also, it will carry out research and analysis on reliability, obsolescence, non-destructive inspection and non-destructive testing techniques, system degradation, structures, corrosion as well as system sustainability. Notably, KBR will provide these services at Oklahoma and other locations for the next five years.
Since 2005, the company has been performing similar duties for the Air Force. In fact, it keeps on offering scientific, engineering and technical solutions to advance defense as well as national security interests on land, at sea, in the air, space and cyberspace. Impressively, KBR provides the DoD with one of the largest independent flight test organizations in the world.
Solid Backlog Level & Share Performance
As of Mar 31, 2021, total backlog was $14.6 billion compared with $15.1 billion at 2020-end. Of the total backlog, Government Solutions booked $12.3 billion. Sustainable Technology Solutions segment accounted for $2.3 billion of the total backlog.
KBR’s shares have gained 5.6% in the past three months, almost in line with the industry’s 6% growth. Also, earnings estimates for 2021 have moved up 0.5% over the past 60 days, depicting analysts' optimism over bottom-line growth potential. The Zacks Consensus Estimate for the Zacks Rank #3 (Hold) company’s 2021 earnings indicates a 22% increase from 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KBR’s solid prospects are backed by continuous contract wins, strong project execution, backlog level, and potential government as well as technology businesses. Effective Jan 1, 2021, it implemented a strategic change and transitioned from a three-core business segment model to a two-core business segment model comprised Government Solutions and Sustainable Technology Solutions.
The Government Solutions business is one of the major contributing units of KBR — which shares space with AECOM (ACM - Free Report) , Jacobs Engineering Group Inc. (J - Free Report) and Quanta Services Inc. (PWR - Free Report) in the Zacks Engineering - R and D Services industry. The business has been riding on on-contract growth in logistics and engineering, take-away wins alongside new work awarded under the company’s portfolio of well-positioned contracting vehicles.
Robust contribution from KBR’s overseas logistics and mission support programs on the back of higher military exercise activities, increased outsourcing of sustainment activities by the military and ramp up of new wins led to the growth. Notably, higher tasking for various missile defense and other military priorities in its engineering business areas — under select IDIQ contracts — are other major positives. The company anticipates strong growth across all key markets in the United States, U.K. and Australia, primarily attributable to persistent opportunities across the project’s lifecycle.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>