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Jacobs (JEC) Wins 10-Year Contract From City of Waterbury
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Jacobs Engineering Group Inc. recently clinched a 10-year contract valued $62 million from City of Waterbury to operate and maintain wastewater utilities in the city.
Given Jacob’s expertise in operations and asset management, the company will undertake the responsibilities pertaining to water pollution control, collection and other related utilities in Waterbury, CT. The partnership is expected to rake in savings of up to $12.7 million for the city, higher than what was derived under the previous operating model.
Jacobs will also be responsible for monitoring and maintaining equipment and conducting training of staff and supporting operations. The operating plan includes upgrades, adjustments and long-term facility planning.
The company has been performing pretty well of late. It is generating higher revenues from contract wins, increased focus on high-value businesses and efficient project execution. Backed by such positives, shares of Jacobs, a Zacks Rank #2 (Buy) company, have broadly outperformed the industry in a year. Its shares have gained 27.9% against the industry’s decline of 8.1%.
Rationale Behind
The contract win is reflective of Jacob’s ability to execute different projects in the most efficient manner. It also highlights Jacobs’ efforts to earn high-end and differentiated Buildings, Infrastructure and Advanced Facilities (BIAF) deals.
The segment accounted for more than 41% of total revenues in the third quarter of 2018. In the third quarter of 2018, revenues from the segment totaled $1,707.1 million that increased 72.9% year over year. Backlog at the end of the quarter was roughly $11.3 billion, up 75.2% year over year.
As it is, Jacobs leads the global professional services sector, providing solutions for a sustainable environment. It offers a broad array of services, including scientific, technical, professional and construction. It also efficiently manages business programs for industrial, commercial, government and infrastructure sectors. Owing to its leading position, the company recorded $15 billion revenues in fiscal 2017 and the upward trend in revenues in likely to continue.
While the Zacks Consensus Estimate calls for 2018 revenues of $15.1 billion, earnings are expected to grow 35.2% year over year.
KBR surpassed earnings estimates in three of the past four quarters, the average positive surprise being 12.6%.
EMCOR Group’s expected earnings growth rate for the current year is 20%.
Dycom Industries surpassed earnings estimates in three of the past four quarters, the average positive surprise being 3.4%.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Jacobs (JEC) Wins 10-Year Contract From City of Waterbury
Jacobs Engineering Group Inc. recently clinched a 10-year contract valued $62 million from City of Waterbury to operate and maintain wastewater utilities in the city.
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Given Jacob’s expertise in operations and asset management, the company will undertake the responsibilities pertaining to water pollution control, collection and other related utilities in Waterbury, CT. The partnership is expected to rake in savings of up to $12.7 million for the city, higher than what was derived under the previous operating model.
Jacobs will also be responsible for monitoring and maintaining equipment and conducting training of staff and supporting operations. The operating plan includes upgrades, adjustments and long-term facility planning.
The company has been performing pretty well of late. It is generating higher revenues from contract wins, increased focus on high-value businesses and efficient project execution. Backed by such positives, shares of Jacobs, a Zacks Rank #2 (Buy) company, have broadly outperformed the industry in a year. Its shares have gained 27.9% against the industry’s decline of 8.1%.
Rationale Behind
The contract win is reflective of Jacob’s ability to execute different projects in the most efficient manner. It also highlights Jacobs’ efforts to earn high-end and differentiated Buildings, Infrastructure and Advanced Facilities (BIAF) deals.
The segment accounted for more than 41% of total revenues in the third quarter of 2018. In the third quarter of 2018, revenues from the segment totaled $1,707.1 million that increased 72.9% year over year. Backlog at the end of the quarter was roughly $11.3 billion, up 75.2% year over year.
As it is, Jacobs leads the global professional services sector, providing solutions for a sustainable environment. It offers a broad array of services, including scientific, technical, professional and construction. It also efficiently manages business programs for industrial, commercial, government and infrastructure sectors. Owing to its leading position, the company recorded $15 billion revenues in fiscal 2017 and the upward trend in revenues in likely to continue.
While the Zacks Consensus Estimate calls for 2018 revenues of $15.1 billion, earnings are expected to grow 35.2% year over year.
Other Stocks to Consider
Other top-ranked stocks in the Construction sector are KBR, Inc. (KBR - Free Report) , EMCOR Group, Inc. (EME - Free Report) and Dycom Industries, Inc. (DY - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KBR surpassed earnings estimates in three of the past four quarters, the average positive surprise being 12.6%.
EMCOR Group’s expected earnings growth rate for the current year is 20%.
Dycom Industries surpassed earnings estimates in three of the past four quarters, the average positive surprise being 3.4%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>