Construction and engineering company,
Jacobs Engineering Group Inc.
), won contracts recently, maintaining its strong momentum of
deal wins. The first contract was awarded by the Volpe National
Transportation Systems Center. The contract entails Jacobs to
provide monitoring and technical assistance for the Federal
Railroad Administration Grant and Loan Program. The maximum worth
of the contract is $70 million.
The second contract was awarded by Suncor Energy Services Inc.
The oil sands and plant services contract was awarded for
Suncor's Fort McMurray Base Plant, located in Alberta,
The value of the 2-year contract has not been disclosed. Per
the contract, Jacobs will help in the maintenance of the plant's
process, through mechanical, rotating and operating
Along with these, the company received another contract. The
third contract was awarded to Jacobs' joint venture, TASK JV,
between recently-acquired Sinclair Knight Merz and Thiess. The
contract, awarded by Water Corporation of Western Australia,
entails TASK JV to design, construct and commission the East
Rockingham Wastewater Treatment Plant near Perth, Australia.
The continuous contract wins by the company will increase
revenues in the coming quarters. Additionally, the strong
customer relationships maintained by the company also help it to
generate higher revenues.
Recently, Jacobs reported its results for the first quarter of
fiscal 2014. Adjusted earnings per share in the reported quarter
were 76 cents, flat with the year-ago quarter. Revenues were
$3.07 billion, up 11.2% year over year but slightly lower than
the Zacks Consensus Estimate of $3.09 billion.
With a market capitalization of $8.3 billion, Jacobs carries a
Zacks Rank #3 (Hold). Some better-ranked stocks in the industry
worth a watch include
Quanta Services, Inc.
Beazer Homes USA Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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