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Jacobs (J) Wins an IDIQ Contract to Support USAF in Japan
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Jacobs Engineering Group Inc. (J - Free Report) receives an indefinite delivery indefinite quantity (IDIQ) architecture and engineering (AE) services contract from the U.S. Air Force.
Per the contract, J will provide professional facility planning, programming, design and construction management services for the United States Air Force (USAF), located at Yokota Air Base, Misawa Air Base and Camp Zama, Japan.
The scope of work includes the full range of Title I (Design Services), Title II (Construction and Inspection Services), and Title III services (Other Professional Services, Investigation, and Studies) that will support the construction and renovation of new and current installations.
This contract has an initial five-year base period with the option to renew for an additional two years. Jacobs plans to partner with specialty Japanese sub-consultants who understand Department of Defense (DoD) and Japanese government requirements on hazardous materials testing and handling, sub-surface investigations and topographical surveying.
Jacobs’ Federal & Environmental Solutions’ senior vice president and general manager, and retired USAF Major General, Tim Byers, said, "Continuing to bring the most innovative and resilient solutions in engineering design, consulting and advisory services, sustainability and cyber to the region supports the future missions of the Air Force and the DoD in Japan and worldwide."
Image Source: Zacks Investment Research
J’s shares gained 1.32% on Dec 13 and 2.7% in the past three months. The Zacks Technology Services industry declined 11.8% in the past three months. Earnings estimates for fiscal 2023 suggest 6.9% year-over-year growth.
Solid Project Execution to Drive Growth
Jacobs is witnessing a 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 the end of the fiscal fourth quarter, J reported a backlog of $27.9 billion, up 5% year over year. This reflects the persistent and solid demand for Jacobs' consulting services.
Of this backlog, Critical Mission Solutions (CMS) accounted for $10.56 billion, slightly down from a year-ago figure. Despite a slight decrease in backlog, the segment benefits from well-funded government programs as well as cyber, U.S. Department of Defense (DoD), mission-IT, space, nuclear and 5G-related projects.
People & Places Solutions’ (P&PS) backlog at fiscal third quarter-end was $17 billion, up from $15.74 billion a year ago. The P&PS segment’s overall sales pipeline has increased as both life sciences and electronics customers have moved forward with previously paused projects.
Jacobs’ Focus 2023 initiative entails more than $200 million in benefits versus fiscal 2020. Jacobs expects that by 2023, its transformative initiative, which will provide Jacobs with the flexibility to materially invest in the business, will drive growth through technology-enabled solutions.
Some better-ranked stocks in the Zacks Construction sector are CRH plc (CRH - Free Report) , Janus International Group, Inc. (JBI - Free Report) and United Rentals, Inc. (URI - Free Report) , each carrying a Zacks Rank #2 (Buy).
CRH manufactures cement, concrete products, aggregates, roofing, insulation and other building materials.
CRH’s expected earnings growth rate for 2022 is 22.1%. The Zacks Consensus Estimate for current-year and next-year earnings has improved to $3.98 and $3.43 per share from $3.46 and $3.42, respectively, over the past 30 days.
Headquartered in Temple, GA, Janus manufactures and supplies turn-key self-storage and commercial and industrial building solutions. Solid backlog levels, an impressive project pipeline, productivity improvements and commercial actions, including pricing, are expected to drive growth. The company is expected to benefit from its one-stop-shop offering with a leading market share position in self-storage doors and related design and installation services.
Janus’ earnings for 2022 are expected to rise 21%. The Zacks Consensus Estimate for current-year and next-year earnings has improved to 75 cents and 88 cents per share from 69 cents and 80 cents, respectively, over the past 30 days.
United Rentals is the largest equipment rental company in the world, with an integrated network of 1,390 rental locations in the United States, Canada and Europe.
URI’s expected earnings growth rates for 2022 and 2023 are 47.3% and 12.5%, respectively. The Zacks Consensus Estimate for current-year and next-year earnings has improved to $32.50 and $36.57 per share from $32.41 and $36.27, respectively, over the past 30 days.
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Jacobs (J) Wins an IDIQ Contract to Support USAF in Japan
Jacobs Engineering Group Inc. (J - Free Report) receives an indefinite delivery indefinite quantity (IDIQ) architecture and engineering (AE) services contract from the U.S. Air Force.
Per the contract, J will provide professional facility planning, programming, design and construction management services for the United States Air Force (USAF), located at Yokota Air Base, Misawa Air Base and Camp Zama, Japan.
The scope of work includes the full range of Title I (Design Services), Title II (Construction and Inspection Services), and Title III services (Other Professional Services, Investigation, and Studies) that will support the construction and renovation of new and current installations.
This contract has an initial five-year base period with the option to renew for an additional two years. Jacobs plans to partner with specialty Japanese sub-consultants who understand Department of Defense (DoD) and Japanese government requirements on hazardous materials testing and handling, sub-surface investigations and topographical surveying.
Jacobs’ Federal & Environmental Solutions’ senior vice president and general manager, and retired USAF Major General, Tim Byers, said, "Continuing to bring the most innovative and resilient solutions in engineering design, consulting and advisory services, sustainability and cyber to the region supports the future missions of the Air Force and the DoD in Japan and worldwide."
Image Source: Zacks Investment Research
J’s shares gained 1.32% on Dec 13 and 2.7% in the past three months. The Zacks Technology Services industry declined 11.8% in the past three months. Earnings estimates for fiscal 2023 suggest 6.9% year-over-year growth.
Solid Project Execution to Drive Growth
Jacobs is witnessing a 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 the end of the fiscal fourth quarter, J reported a backlog of $27.9 billion, up 5% year over year. This reflects the persistent and solid demand for Jacobs' consulting services.
Of this backlog, Critical Mission Solutions (CMS) accounted for $10.56 billion, slightly down from a year-ago figure. Despite a slight decrease in backlog, the segment benefits from well-funded government programs as well as cyber, U.S. Department of Defense (DoD), mission-IT, space, nuclear and 5G-related projects.
People & Places Solutions’ (P&PS) backlog at fiscal third quarter-end was $17 billion, up from $15.74 billion a year ago. The P&PS segment’s overall sales pipeline has increased as both life sciences and electronics customers have moved forward with previously paused projects.
Jacobs’ Focus 2023 initiative entails more than $200 million in benefits versus fiscal 2020. Jacobs expects that by 2023, its transformative initiative, which will provide Jacobs with the flexibility to materially invest in the business, will drive growth through technology-enabled solutions.
Zacks Rank & Key Picks
Currently, Jacobs carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Construction sector are CRH plc (CRH - Free Report) , Janus International Group, Inc. (JBI - Free Report) and United Rentals, Inc. (URI - Free Report) , each carrying a Zacks Rank #2 (Buy).
CRH manufactures cement, concrete products, aggregates, roofing, insulation and other building materials.
CRH’s expected earnings growth rate for 2022 is 22.1%. The Zacks Consensus Estimate for current-year and next-year earnings has improved to $3.98 and $3.43 per share from $3.46 and $3.42, respectively, over the past 30 days.
Headquartered in Temple, GA, Janus manufactures and supplies turn-key self-storage and commercial and industrial building solutions. Solid backlog levels, an impressive project pipeline, productivity improvements and commercial actions, including pricing, are expected to drive growth. The company is expected to benefit from its one-stop-shop offering with a leading market share position in self-storage doors and related design and installation services.
Janus’ earnings for 2022 are expected to rise 21%. The Zacks Consensus Estimate for current-year and next-year earnings has improved to 75 cents and 88 cents per share from 69 cents and 80 cents, respectively, over the past 30 days.
United Rentals is the largest equipment rental company in the world, with an integrated network of 1,390 rental locations in the United States, Canada and Europe.
URI’s expected earnings growth rates for 2022 and 2023 are 47.3% and 12.5%, respectively. The Zacks Consensus Estimate for current-year and next-year earnings has improved to $32.50 and $36.57 per share from $32.41 and $36.27, respectively, over the past 30 days.