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Jacobs (J) Wins Project Management Deal From Johns Hopkins
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Jacobs Engineering Group Inc. (J - Free Report) has nabbed a contract from Johns Hopkins Medicine for providing management services to revamp key medical and R&D center campuses in Baltimore, MD. The financial terms of the transaction are not yet disclosed.
Shares of this construction and technical services company have dropped 0.49% during the trading session on Jan 19 but gained 1.57% in the after-hours trading session on the same day.
Jacobs’ executive vice president and president of People & Places Solutions, Patrick Hill said, “We are committed to supporting the organization's mission of improving the health of the community and the world through setting the standard of excellence in medical education, research and clinical care."
Per the contract, Jacobs is entitled to modernize The Johns Hopkins Hospital's existing Children's Medical and Surgical Center or CMSC and build a new 12-story North Tower addition. The company will provide project management services for 531,609 square feet of renovation and additions to the CMSC North Tower project. It also includes the replacement of the existing façade, construction of research laboratories and a new entrance to The Johns Hopkins Hospital from Monument Street.
Jacobs expects construction to be completed in the summer of 2026.
Continuous Contract Win: A Reflection of Solid Project Execution
Jacobs has been witnessing accelerating demand for consulting services for infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Efficient project execution has been one of the main characteristics driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to the fact. At fiscal 2021-end, it reported a backlog of $26.6 billion, up 12% year over year. This reflects persistent solid demand for Jacobs' consulting services.
Given the growth dynamics, Jacobs projects double-digit adjusted EBITDA growth for fiscal 2022. Beyond 2022, Jacobs expects strong organic growth to result in $10 per share of adjusted EPS in fiscal 2025.
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Coming to the share price performance, Jacobs’ shares have gained 16.1% over a year compared with the industry’s 18.5% growth. Yet, earnings estimates for fiscal 2022 have increased to $7.11 per share from $7.10 over the past seven days. The estimated figure indicates a year-over-year improvement of 13%.
Overall, the share price of Jacobs should continue to maintain positive momentum in the near term, as the company’s solutions are closely aligned with President Biden’s policies and industry trends. Jacobs is expected to benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply chain investments.
Toll Brothers Inc. (TOL - Free Report) currently sports a Zacks Rank #1. This Horsham, PA-based luxury homebuilder builds single-family detached and attached home communities; master-planned luxury residential resort-style golf communities; and urban low, mid, and high-rise communities, principally on the land it develops and improves. It has been benefiting from the strategy of broadening product lines, price points and geographies.
Toll Brothers’ earnings for fiscal 2022 are expected to rise 49.9% year over year.
D.R. Horton (DHI - Free Report) currently carries a Zacks Rank #2 (Buy). This Texas-based prime homebuilder continues to gain from industry-leading market share, a solid acquisition strategy, a well-stocked supply of land, lots, and homes along with affordable product offerings across multiple brands.
D.R. Horton’s earnings are expected to rise 27.6% year over year in fiscal 2022.
Quanta Services, Inc. (PWR - Free Report) currently carries a Zacks Rank #2. Based in Houston, TX, Quanta is gaining from a three-pronged growth strategy focusing on the timely delivery of projects to exceed customer expectations, leverage core business to expand in complementary adjacent service lines and enable the continuation of exploring new service lines. Overall, the company’s engineering and project management capabilities allow it to capitalize on the market trends that are currently skewed toward the engineering, procurement, and construction or EPC model.
Quanta’s earnings are expected to grow 28.3% in 2022.
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Jacobs (J) Wins Project Management Deal From Johns Hopkins
Jacobs Engineering Group Inc. (J - Free Report) has nabbed a contract from Johns Hopkins Medicine for providing management services to revamp key medical and R&D center campuses in Baltimore, MD. The financial terms of the transaction are not yet disclosed.
Shares of this construction and technical services company have dropped 0.49% during the trading session on Jan 19 but gained 1.57% in the after-hours trading session on the same day.
Jacobs’ executive vice president and president of People & Places Solutions, Patrick Hill said, “We are committed to supporting the organization's mission of improving the health of the community and the world through setting the standard of excellence in medical education, research and clinical care."
Per the contract, Jacobs is entitled to modernize The Johns Hopkins Hospital's existing Children's Medical and Surgical Center or CMSC and build a new 12-story North Tower addition. The company will provide project management services for 531,609 square feet of renovation and additions to the CMSC North Tower project. It also includes the replacement of the existing façade, construction of research laboratories and a new entrance to The Johns Hopkins Hospital from Monument Street.
Jacobs expects construction to be completed in the summer of 2026.
Continuous Contract Win: A Reflection of Solid Project Execution
Jacobs has been witnessing accelerating demand for consulting services for infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Efficient project execution has been one of the main characteristics driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to the fact. At fiscal 2021-end, it reported a backlog of $26.6 billion, up 12% year over year. This reflects persistent solid demand for Jacobs' consulting services.
Given the growth dynamics, Jacobs projects double-digit adjusted EBITDA growth for fiscal 2022. Beyond 2022, Jacobs expects strong organic growth to result in $10 per share of adjusted EPS in fiscal 2025.
Coming to the share price performance, Jacobs’ shares have gained 16.1% over a year compared with the industry’s 18.5% growth. Yet, earnings estimates for fiscal 2022 have increased to $7.11 per share from $7.10 over the past seven days. The estimated figure indicates a year-over-year improvement of 13%.
Overall, the share price of Jacobs should continue to maintain positive momentum in the near term, as the company’s solutions are closely aligned with President Biden’s policies and industry trends. Jacobs is expected to benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply chain investments.
Zacks Rank
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 Construction Sector
Toll Brothers Inc. (TOL - Free Report) currently sports a Zacks Rank #1. This Horsham, PA-based luxury homebuilder builds single-family detached and attached home communities; master-planned luxury residential resort-style golf communities; and urban low, mid, and high-rise communities, principally on the land it develops and improves. It has been benefiting from the strategy of broadening product lines, price points and geographies.
Toll Brothers’ earnings for fiscal 2022 are expected to rise 49.9% year over year.
D.R. Horton (DHI - Free Report) currently carries a Zacks Rank #2 (Buy). This Texas-based prime homebuilder continues to gain from industry-leading market share, a solid acquisition strategy, a well-stocked supply of land, lots, and homes along with affordable product offerings across multiple brands.
D.R. Horton’s earnings are expected to rise 27.6% year over year in fiscal 2022.
Quanta Services, Inc. (PWR - Free Report) currently carries a Zacks Rank #2. Based in Houston, TX, Quanta is gaining from a three-pronged growth strategy focusing on the timely delivery of projects to exceed customer expectations, leverage core business to expand in complementary adjacent service lines and enable the continuation of exploring new service lines. Overall, the company’s engineering and project management capabilities allow it to capitalize on the market trends that are currently skewed toward the engineering, procurement, and construction or EPC model.
Quanta’s earnings are expected to grow 28.3% in 2022.