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Jacobs-Russell JV to Serve MARTA's $3B Expansion Project
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The joint venture (JV) between Jacobs Engineering Group Inc. (J - Free Report) and H. J. Russell & Company has been selected to support the Metropolitan Atlanta Rapid Transit Authority’s (MARTA) expansion project.
As part of the $3-billion expansion program, MARTA entitled the Jacobs/Russell JV team to serve as a CPMO Supplemental Services Consultant and manage $700 million in construction spending in the first five years of the Authority's "More MARTA Atlanta" expansion project.
The Jacobs/Russell JV will look into the standardization of project management processes and quality assurance, as well as handle project resources including planning, monitoring and performance measurements.
MARTA general manager and CEO Jeffrey Parker stated, “With the expertise and vision the Jacobs/Russell Team brings, we are confident that this historic expansion will be delivered efficiently and will make sense in the local and regional context."
Notably, this expansion project will create more than 6,000 jobs and employ 15 subcontractors.
Contract Wins & Solid Backlog: A Boon
Jacobs’ shares have broadly outperformed the industry in the year-to-date period. The price performance is backed by an impressive earnings surprise history. The company surpassed earnings estimates in nine of the trailing 11 quarters. The trend is expected to continue in the near term, courtesy of its solid fiscal 2019 and first-half fiscal 2020 performance.
Efficient project execution has been one of the main factors that is driving Jacobs’ performance over the last few quarters. The company’s ongoing contract wins are a testimony to the fact. Backlog at fiscal second quarter-end was $23.3 billion, reflecting an increase of 12.5% year over year (up 5% on a pro-forma basis). This reflects continued solid demand for Jacobs' consulting services.
Despite short-term challenges associated with COVID-19, the long-term guidance for the business remains intact and it expects to generate strong free cash flow for the remainder of 2020. Management had earlier outlined margin targets for the next three years (through 2021). Jacobs is aiming at a 125-175 basis points (bps) expansion in adjusted operating margins within the same time frame. The guidance anticipates 100-150 bps increase in CMS margins and 110-140 bps growth in People & Places Solutions or PPS margin, supported by the elimination of ECR. This will lead to a 125-175 bps rise in overall margins. The margin expansion is expected to be driven by a combination of higher-margin backlog, and focus on generating efficiencies through digital and technological solutions.
Jacobs is projecting 3-5% net organic revenue growth, with PPS leading the way with 4-6% top-line CAGR and CMS with 2-3% CAGR.
Zacks Rank
Jacobs — which shares space with KBR Inc. (KBR - Free Report) , Quanta Services, Inc. (PWR - Free Report) and Fluor Corporation (FLR - Free Report) in the same industry — currently carries a Zacks Rank #4 (Sell).
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Jacobs-Russell JV to Serve MARTA's $3B Expansion Project
The joint venture (JV) between Jacobs Engineering Group Inc. (J - Free Report) and H. J. Russell & Company has been selected to support the Metropolitan Atlanta Rapid Transit Authority’s (MARTA) expansion project.
As part of the $3-billion expansion program, MARTA entitled the Jacobs/Russell JV team to serve as a CPMO Supplemental Services Consultant and manage $700 million in construction spending in the first five years of the Authority's "More MARTA Atlanta" expansion project.
The Jacobs/Russell JV will look into the standardization of project management processes and quality assurance, as well as handle project resources including planning, monitoring and performance measurements.
MARTA general manager and CEO Jeffrey Parker stated, “With the expertise and vision the Jacobs/Russell Team brings, we are confident that this historic expansion will be delivered efficiently and will make sense in the local and regional context."
Notably, this expansion project will create more than 6,000 jobs and employ 15 subcontractors.
Contract Wins & Solid Backlog: A Boon
Jacobs’ shares have broadly outperformed the industry in the year-to-date period. The price performance is backed by an impressive earnings surprise history. The company surpassed earnings estimates in nine of the trailing 11 quarters. The trend is expected to continue in the near term, courtesy of its solid fiscal 2019 and first-half fiscal 2020 performance.
Efficient project execution has been one of the main factors that is driving Jacobs’ performance over the last few quarters. The company’s ongoing contract wins are a testimony to the fact. Backlog at fiscal second quarter-end was $23.3 billion, reflecting an increase of 12.5% year over year (up 5% on a pro-forma basis). This reflects continued solid demand for Jacobs' consulting services.
Despite short-term challenges associated with COVID-19, the long-term guidance for the business remains intact and it expects to generate strong free cash flow for the remainder of 2020. Management had earlier outlined margin targets for the next three years (through 2021). Jacobs is aiming at a 125-175 basis points (bps) expansion in adjusted operating margins within the same time frame. The guidance anticipates 100-150 bps increase in CMS margins and 110-140 bps growth in People & Places Solutions or PPS margin, supported by the elimination of ECR. This will lead to a 125-175 bps rise in overall margins. The margin expansion is expected to be driven by a combination of higher-margin backlog, and focus on generating efficiencies through digital and technological solutions.
Jacobs is projecting 3-5% net organic revenue growth, with PPS leading the way with 4-6% top-line CAGR and CMS with 2-3% CAGR.
Zacks Rank
Jacobs — which shares space with KBR Inc. (KBR - Free Report) , Quanta Services, Inc. (PWR - Free Report) and Fluor Corporation (FLR - Free Report) in the same industry — currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>