Engineering and construction company,
Jacobs Engineering Group Inc.
) recently added more contracts to its existing pipeline. The
company won an engineering, procurement and construction
management contract from
Midway Gold Corp.
), the value of which was not disclosed.
Per the contract, Jacobs will be offering its services for
Midway's Pan Project, which is expected to start production by
mid-2014. Construction work in this project will be undertaken
using Jacobs' manpower and equipment with the latter facilitating
the construction of buildings, the leach pad, ponds and other
mine site infrastructure.
A day earlier, Jacobs won a contract from
Honeywell International Inc.
), to provide Integrated Project Management Team services. The
company's services will aid Honeywell's new production plant at
Zhangjiagang City, the People's Republic of China. The contract
value remained confidential.
Under this contract, Jacobs will provide basic and detailed
design, construction management services, permitting, project
controls along with optional commissioning and start-up support.
The project is expected to commence in the fourth quarter of
On the same day, Jacobs received a Technical Consultancy
Agreement from EDF Energy Nuclear Generation Limited. The
contract entails that Jacobs' support for EDF Energy's power
station projects in the United Kingdom. The contract will be
valid till the end of Dec 2015. The value of this contract too
Jacobs' EDF contract involves the provision of engineering and
design services, technical consultancy, safety, and environmental
disciplines for EDF Energy's power stations in U.K.
With such a strong contract pipeline, we expect the company to
grow in the coming quarters. Jacobs is expected to release its
fiscal fourth-quarter 2013 results on Nov 18. The Zacks Consensus
Estimate for the quarter is pegged at 87 cents, reflecting a
year-over-year growth of 8.7%. For fiscal 2013, the Zacks
Consensus Estimate is $3.26 per share, reflecting a
year-over-year growth of 12.1%.
Jacobs currently holds a Zacks Rank #2 (Buy). Another stock
worth considering is
), which carries a Zacks Rank #1 (Strong Buy).
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