Jacobs Engineering Group Inc.’s ( J Quick Quote J - Free Report) joint venture with Multiconsult Norge AS was selected by Norwegian Nuclear Decommissioning (“NND”) for the decommissioning of Norway's nuclear facilities. Per the deal, Jacobs/Multiconsult JV will provide engineering concept design and planning of new facilities, upgrade existing nuclear and non-nuclear facilities and support NND with technical documentation and prepare safety cases to meet ownership and operating license requirements. Initially, the work will be provided on two research sites, the nuclear fuel and materials testing reactor at Halden and the JEEP-II neutron scattering facility at Kjeller. These facilities were shut down in 2018 and 2019. NND estimates the total value of this six-year multi-award framework up to $100 million. Jacobs’ Energy, Security and Technology’s senior vice president, Karen Wiemelt, stated, "Laying the foundations for a safe and effective cleanup will protect people and the environment and enable these two sites to be used for other purposes for decades to come."
J’s shares inched up 0.41% in the after-market trading session on Jun 29.
Solid Project Execution to Drive Growth
Jacobs is witnessing rising demand for infrastructure, water, environment, space, broadband, cybersecurity and life sciences consulting services. Efficient project execution has been a primary factor driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to this fact.
At fiscal second quarter-end, it reported a backlog of $27.8 billion, up 8.7% year over year. This reflects persistent solid demand for Jacobs' consulting services. Of this backlog, CMS accounted for $10.5 billion, up from $9.78 billion reported a year ago. The upside provided strong visibility into the base business. P&PS backlog at quarter-end was $16.96 billion, up from $15.5 billion a year ago. Image Source: Zacks Investment Research
J’s shares have outperformed the Zacks
Engineering - R and D Services industry in the past three months. Impressively, 2022 earnings estimates have moved up in the past two months, reflecting 13.2% year-over-year growth. The trend is expected to continue in the near term, courtesy of its solid results for the first half of fiscal 2022. Zacks Rank & Key Picks
Currently, Jacobs carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. KBR, Inc. ( KBR Quick Quote KBR - Free Report) — currently carrying a Zacks Rank #2 (Buy) — provides professional services and technologies across the asset and program life-cycle within government services and hydrocarbons industries worldwide. Its mission-critical government services, high-end and differentiated government business work, strong margin performance, proprietary technology solutions and a significant increase in backlog (particularly in Government Solution) are expected to boost 2022 earnings. KBR’s 2022 earnings are likely to rise 3.7%. This Zacks Rank #3 company has seen a 2% upward estimate revision for 2022 earnings in the past 30 days. AECOM ( ACM Quick Quote ACM - Free Report) — currently carrying a Zacks Rank #2 — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and those in environmental, energy and water businesses. AECOM’s expected earnings growth rate for 2022 is 21.6%. The consensus mark for its 2022 earnings has moved up to $3.43 per share from $3.40 in the past 60 days. Sterling Construction Company, Inc. ( STRL Quick Quote STRL - Free Report) — a Zacks Rank #2 company — has been benefiting from broad-based growth across the E-Infrastructure, Building and Transportation solutions segments. The consensus mark for Sterling’s 2022 earnings rose to $2.61 per share from $2.60 in the past 30 days. This suggests 7.9% year-over-year growth.