KBR, Inc. (KBR - Free Report) has received a contract from NASA to provide launch range operations support at the agency's Wallops Flight Facility in Wallops Island, VA. The contract, which spans for five years, is valued at $200 million.
Per the contract, KBR is entitled to perform a wide range of work that includes radar, telemetry, logistics, tracking and communications services for flight vehicles. These include orbital and suborbital rockets, aircraft, satellites, balloons, as well as unmanned aerial systems.
KBR, which has been serving NASA for more than 60 years, will also test, modify and install communications and electronic systems, as well as operate ground, spacecraft and launch vehicle processing systems at launch facilities, launch control centers and test facilities. It will also provide information and computer systems services, along with range technology sustainment engineering services. Work under this contract will start this August and run through August 2024.
KBR — one of the world's largest human spaceflight support organizations — operates at 11 NASA centers and facilities, and supports work in the areas of space technology, aeronautics, science, as well as human exploration and operations.
A Look at Government Services Business Performance
KBR’s Government Solutions unit, accounting for more than 72% of total revenues, recorded 44% revenue growth in the first quarter of 2019. Again, Government Solutions business sales recorded 22% organic growth in the first quarter of 2019, following a 31% increase in fourth-quarter 2018. Its industry-leading organic revenue growth was underpinned by on-contract growth in logistics and engineering, take-away wins, alongside new work awarded under the company’s portfolio of well-positioned contracting vehicles.
Notably, shares of KBR have gained 58% year to date, broadly outperforming the industry’s 17.3% collective growth. The contract winning spree underscores KBR's proven ability to safely and efficiently deliver projects in operating facilities.
Zacks Rank & Key Picks
Currently, KBR carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Altair Engineering Inc. (ALTR - Free Report) , AECOM (ACM - Free Report) and Quanta Services, Inc. (PWR - Free Report) . While Altair Engineering sports a Zacks Rank #1 (Strong Buy), AECOM and Quanta Services carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Altair Engineering’s 2019 earnings are expected to grow 53.7%.
AECOM has a solid earnings surprise history, having surpassed the consensus mark in all the trailing four quarters, with the average being 6.2%.
Quanta Services’ earnings for the current year are anticipated to increase 29.5%.
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