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Jacobs (J) Awarded a Prime Consulting Contract With VPRA
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Jacobs Solutions Inc. (J - Free Report) , a leading provider of engineering and consulting services, has been chosen as the prime consultant for the Virginia Passenger Rail Authority (“VPRA”). The contract, valued at up to $10 million per year, will focus on delivering general engineering consulting services as part of the Transforming Rail in Virginia infrastructure program. This initiative aims to enhance mobility and connectivity across communities in Virginia. The contract has the option to renew for an additional three years.
The contract encompasses a wide range of responsibilities, including supporting the planning, design, construction and maintenance of projects related to the Transforming Rail in Virginia program. Jacobs will leverage its expertise in market analysis and travel demand forecasting to provide comprehensive support for the improvement and expansion of the existing Amtrak service. Additionally, the company will contribute to the restoration of Amtrak's Roanoke to the New River Valley service, facilitating the establishment of high-speed passenger rail in the state.
J's involvement will contribute to the doubling of the Amtrak state-supported service and the expansion of the Virginia Railway Express service over the next decade. Furthermore, Jacobs will provide general planning and consulting services for the Transforming Rail in Virginia program under a separate contract, which is also estimated to be worth up to $10 million per year, with the option for a four-year renewal.
With this contract as the prime consultant to the VPRA, the company is poised to play a significant role in the development and advancement of Virginia's rail network, driving economic growth and improved connectivity for the state.
Solid Backlog Level – a Boon
Jacobs has been experiencing the increased demand for consulting services in various sectors, including infrastructure, water, environment, space, broadband, cybersecurity and life sciences. The company's strong performance in recent quarters can be attributed to efficient project execution. This is reflected in the solid backlog, which stood at $29 billion at the end of the second quarter of fiscal 2023, representing a 4% increase compared to the previous year.
Image Source: Zacks Investment Research
J’s shares gained 7.4% in the past month compared with the Zacks Technology Services industry’s 2.5% rise. Earnings estimates for fiscal 2023 suggest 6.1% year-over-year growth on 7.6% higher revenues.
However, foreign exchange risks, high costs and expenses are major concerns. In the fiscal second quarter of 2023, the Critical Mission Solutions segment witnessed negative impacts on revenues from the unfavorable foreign currency translation of $25.5 million (up from $10.1 million in the prior-year period). Similarly, in the People & Places Solutions segment, foreign currency translation had a $51.2 million unfavorable impact on the revenues of its international businesses.
However, solid project execution, a strong backlog level and proficient growth strategies (like Boldly Moving Forward/ Focus 2023) will drive growth.
The bottom line of CAR outpaced estimates in all the last four quarters, the average beat being 65.2%. The Zacks Consensus Estimate for Avis Budget Group’s 2023 earnings has moved north to $35.14 per share from $35.00 per share in the past 30 days.
IBEX Limited’s earnings outpaced estimates in all the last four quarters, the average beat being 34.5%. IBEX currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for IBEX Limited’s 2023 earnings suggests an improvement of 55.3% from the year-ago reported figure. The consensus mark for IBEX’s 2023 earnings has moved north to $2.05 per share from $1.71 per share over the past 60 days.
Trane Technologies’ earnings outpaced estimates in each of the trailing four quarters, the average surprise being 6.7%. TT currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Trane Technologies’ 2023 earnings suggests an improvement of 14.8% from the year-ago reported figure. The same for revenues suggests growth of 9% from the year-ago reported number. The consensus mark for TT’s 2023 earnings has moved north to $8.45 per share from $8.42 per share in the past 60 days.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Jacobs (J) Awarded a Prime Consulting Contract With VPRA
Jacobs Solutions Inc. (J - Free Report) , a leading provider of engineering and consulting services, has been chosen as the prime consultant for the Virginia Passenger Rail Authority (“VPRA”). The contract, valued at up to $10 million per year, will focus on delivering general engineering consulting services as part of the Transforming Rail in Virginia infrastructure program. This initiative aims to enhance mobility and connectivity across communities in Virginia. The contract has the option to renew for an additional three years.
The contract encompasses a wide range of responsibilities, including supporting the planning, design, construction and maintenance of projects related to the Transforming Rail in Virginia program. Jacobs will leverage its expertise in market analysis and travel demand forecasting to provide comprehensive support for the improvement and expansion of the existing Amtrak service. Additionally, the company will contribute to the restoration of Amtrak's Roanoke to the New River Valley service, facilitating the establishment of high-speed passenger rail in the state.
J's involvement will contribute to the doubling of the Amtrak state-supported service and the expansion of the Virginia Railway Express service over the next decade. Furthermore, Jacobs will provide general planning and consulting services for the Transforming Rail in Virginia program under a separate contract, which is also estimated to be worth up to $10 million per year, with the option for a four-year renewal.
With this contract as the prime consultant to the VPRA, the company is poised to play a significant role in the development and advancement of Virginia's rail network, driving economic growth and improved connectivity for the state.
Solid Backlog Level – a Boon
Jacobs has been experiencing the increased demand for consulting services in various sectors, including infrastructure, water, environment, space, broadband, cybersecurity and life sciences. The company's strong performance in recent quarters can be attributed to efficient project execution. This is reflected in the solid backlog, which stood at $29 billion at the end of the second quarter of fiscal 2023, representing a 4% increase compared to the previous year.
Image Source: Zacks Investment Research
J’s shares gained 7.4% in the past month compared with the Zacks Technology Services industry’s 2.5% rise. Earnings estimates for fiscal 2023 suggest 6.1% year-over-year growth on 7.6% higher revenues.
However, foreign exchange risks, high costs and expenses are major concerns. In the fiscal second quarter of 2023, the Critical Mission Solutions segment witnessed negative impacts on revenues from the unfavorable foreign currency translation of $25.5 million (up from $10.1 million in the prior-year period). Similarly, in the People & Places Solutions segment, foreign currency translation had a $51.2 million unfavorable impact on the revenues of its international businesses.
However, solid project execution, a strong backlog level and proficient growth strategies (like Boldly Moving Forward/ Focus 2023) will drive growth.
Zacks Rank
Currently, Jacobs carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) , IBEX Limited (IBEX - Free Report) and Trane Technologies plc (TT - Free Report) .
Avis Budget Group sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of CAR outpaced estimates in all the last four quarters, the average beat being 65.2%. The Zacks Consensus Estimate for Avis Budget Group’s 2023 earnings has moved north to $35.14 per share from $35.00 per share in the past 30 days.
IBEX Limited’s earnings outpaced estimates in all the last four quarters, the average beat being 34.5%. IBEX currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for IBEX Limited’s 2023 earnings suggests an improvement of 55.3% from the year-ago reported figure. The consensus mark for IBEX’s 2023 earnings has moved north to $2.05 per share from $1.71 per share over the past 60 days.
Trane Technologies’ earnings outpaced estimates in each of the trailing four quarters, the average surprise being 6.7%. TT currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Trane Technologies’ 2023 earnings suggests an improvement of 14.8% from the year-ago reported figure. The same for revenues suggests growth of 9% from the year-ago reported number. The consensus mark for TT’s 2023 earnings has moved north to $8.45 per share from $8.42 per share in the past 60 days.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.