Jacobs Solutions Inc. ( J Quick Quote J - Free Report) secured a $28-million contract from Florida's Turnpike Enterprise, a division of the Florida Department of Transportation, to operate and maintain Intelligent Transportation Systems (ITS). Per the deal, Jacobs will oversee traffic operations for over 500 miles of ITS-connected roadway infrastructure across the state. This five-year contract encompasses various engineering, monitoring and support services. The company will be responsible for managing traffic operations, providing traffic engineering services, and overseeing the maintenance and security of ITS infrastructure. In addition to its core responsibilities, Jacobs will also manage emergency and weather event response plans. It will collaborate with Florida's Turnpike Enterprise to explore and assess advanced data systems to enhance safety and mobility across the transportation network. The partnership combines innovative program management and advanced transportation technology to make travel smarter, safer, and more connected for Florida's residents and visitors. J’s stock dropped 0.37% in the day trading session on Sep 7. Robust Backlog
Jacobs has been witnessing a surge in demand for its consulting services across diverse sectors, encompassing infrastructure, water management, environmental solutions, space exploration, broadband, cybersecurity, and life sciences. The company's recent impressive performance owes much to its effective project execution, underscored by a consistent stream of contract wins.
A testament to this success is the robust backlog level, which stood at $28.9 billion by the close of the third quarter of fiscal 2023, up 2.9% from the previous year’s levels. This growth can be attributed mainly to the People and Places Solutions (P&PS) segment, which achieved an impressive 13% year-over-year operating profit growth. Within this backlog, the Critical Mission Solutions segment contributed $8.097 billion, providing substantial visibility into the core business, while P&PS accounted for $17.5 billion during the third quarter of fiscal 2023 Price Performance Image Source: Zacks Investment Research
In the past three months, shares of Jacobs have increased 13.3% against the
industry’s 4.5% fall. A solid backlog level depicts accelerating demand for Jacobs’s consulting services for infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Also, focus on generating efficiencies through digital and technological solutions and solid project execution bodes well. Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold).
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