Jacobs Engineering Group Inc.
) was awarded a contract for the improvement in traffic flow
along with safety on a state highway from the Texas Department of
The project work entails rendering engineering and
environmental services on the Interstate Highway 820 and State
Highway 121 in Fort Worth, Texas, for expansion of the existing
highway through the introduction of tolled managed lanes. The
total cost related to the project is estimated to be $160
million, with roughly $15.7 million allocated for the
The contract is expected to be executed in phases to minimize
the possibility of shortage of funds at any given point of
In another press release, the company declared yet another
contract win. The second deal is with Reliance Industries Limited
in India. The contract, with an undisclosed value, includes
providing engineering and procurement services to a cracker
complex at the refining and petrochemical complex in Jamnagar,
Gujarat in India. The company's offices in Mumbai will be
responsible for the execution of the contract.
This adds up to a series of four contracts for Jacobs,
received in the first 15 days of 2013. The contract wins make us
optimistic about the company's future; while the results for the
first quarter of fiscal 2013, slated for release in a week's
time, are still awaited.
Jacobs is one of the world's largest and most diverse
providers of technical, professional and construction services.
We currently maintain a Neutral recommendation on the stock.
Jacobs also bears a Zacks Rank #3 (Hold). Its peers
National Technical Systems Inc.
) hold a Zacks Rank #2 (Buy).
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