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Jacobs Engineering Group Inc. (J - Free Report) has received a seven-year, $302-million indefinite delivery/indefinite quantity contract from the National Geospatial-Intelligence Agency (“NGA”).
Per the contract, the company will support NGA’s Geospatial-intelligence (GEOINT) Enterprise OpenDataStore (GEODS) services with wide-ranging cyber, digital services and modern software engineering. Jacobs’ support will help GEOINT in accessing and delivering digital intelligence as well as collection automation.
Jacobs’ Critical Mission Solutions’ (CMS) senior vice president of cyber & intelligence, Caesar Nieves, said, "This contract represents how we are helping our clients meet the demands of the digital evolution and revolution by ensuring data continues to be a strategic asset for GEOINT dominance and modernizing NGA from the current on-premise software baseline data center architecture to a hybrid cloud-based set of data services with OpenDataStore."
CMS to Boost Profitability
Jacobs is majorly benefiting from Federal & Environmental Solutions as well as the CMS business. Federal solutions lend support to U.S. federal, public sector, private sector and defense contractors. The company’s CMS unit serves global automotive, aerospace, telecommunications, defense, and nuclear clients as well as the U.S. intelligence community.
Image Source: Zacks Investment Research
In fiscal 2020, 79% of CMS’ revenues were earned by Jacobs from serving the U.S. Department of Defence, Intelligence Community and civil governmental entities. Additionally, 8% of CMS’ revenues were generated from various U.S. commercial sectors. CMS backlog grew 5.5% year over year for the fiscal third quarter, which provided strong visibility into the base business.
Efficient project execution has been one of the main factors driving its performance over the last few quarters. The company’s ongoing contract wins are a testimony to the fact. For the fiscal third quarter, it reported a total backlog of $25.4 billion, up 7.4% year over year. This reflects solid demand for Jacobs' consulting services.
The company’s overall 18-month qualified new business pipeline of more than $30 billion remains robust. Jacobs is benefiting from well-funded government programs and cyber, U.S. Department of Defense, mission-IT, space, nuclear as well as 5G-related projects.
Although its shares have underperformed the industry in the past year, earnings estimates for fiscal 2021 has moved 1.8% up in the past 60 days. This indicate a year-over-year improvement of 13.1%.
Some better-ranked stocks in the same industry include Altair Engineering Inc. (ALTR - Free Report) , Gates Industrial Corporation PLC (GTES - Free Report) and KBR, Inc. (KBR - Free Report) , each carrying a Zacks Rank #2 (Buy).
Altair, Gates Industrial, and KBR’s earnings for 2021 are expected to rise 64.5%, 94.3%, and 24.9%, respectively.
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Jacobs (J) Wins $302M GEODS Contract, Boosts CMS Backlog
Jacobs Engineering Group Inc. (J - Free Report) has received a seven-year, $302-million indefinite delivery/indefinite quantity contract from the National Geospatial-Intelligence Agency (“NGA”).
Per the contract, the company will support NGA’s Geospatial-intelligence (GEOINT) Enterprise OpenDataStore (GEODS) services with wide-ranging cyber, digital services and modern software engineering. Jacobs’ support will help GEOINT in accessing and delivering digital intelligence as well as collection automation.
Jacobs’ Critical Mission Solutions’ (CMS) senior vice president of cyber & intelligence, Caesar Nieves, said, "This contract represents how we are helping our clients meet the demands of the digital evolution and revolution by ensuring data continues to be a strategic asset for GEOINT dominance and modernizing NGA from the current on-premise software baseline data center architecture to a hybrid cloud-based set of data services with OpenDataStore."
CMS to Boost Profitability
Jacobs is majorly benefiting from Federal & Environmental Solutions as well as the CMS business. Federal solutions lend support to U.S. federal, public sector, private sector and defense contractors. The company’s CMS unit serves global automotive, aerospace, telecommunications, defense, and nuclear clients as well as the U.S. intelligence community.
Image Source: Zacks Investment Research
In fiscal 2020, 79% of CMS’ revenues were earned by Jacobs from serving the U.S. Department of Defence, Intelligence Community and civil governmental entities. Additionally, 8% of CMS’ revenues were generated from various U.S. commercial sectors. CMS backlog grew 5.5% year over year for the fiscal third quarter, which provided strong visibility into the base business.
Efficient project execution has been one of the main factors driving its performance over the last few quarters. The company’s ongoing contract wins are a testimony to the fact. For the fiscal third quarter, it reported a total backlog of $25.4 billion, up 7.4% year over year. This reflects solid demand for Jacobs' consulting services.
The company’s overall 18-month qualified new business pipeline of more than $30 billion remains robust. Jacobs is benefiting from well-funded government programs and cyber, U.S. Department of Defense, mission-IT, space, nuclear as well as 5G-related projects.
Although its shares have underperformed the industry in the past year, earnings estimates for fiscal 2021 has moved 1.8% up in the past 60 days. This indicate a year-over-year improvement of 13.1%.
Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the same industry include Altair Engineering Inc. (ALTR - Free Report) , Gates Industrial Corporation PLC (GTES - Free Report) and KBR, Inc. (KBR - Free Report) , each carrying a Zacks Rank #2 (Buy).
Altair, Gates Industrial, and KBR’s earnings for 2021 are expected to rise 64.5%, 94.3%, and 24.9%, respectively.