Series of contract wins continue to boost
Jacobs Engineering Group Inc.
) spirit as it announced winning of two more strategic contracts.
One of the contracts involves an agreement with RailCorp in Sydney,
Australia, and the other is derived from Marafiq in Saudi Arabia.
The financial terms and conditions of both the contracts have not
yet been disclosed.
According to the first contract, the company has been chosen by
Rail Corporation New South Wales (RailCorp) to be a part of its
Design Review Panel. The company will be engaged in offering
various types of design support services to the rail capital
projects under the contract. Moreover, it has been noted that the
three-year framework agreement has an option of multiple one-year
Jacobs expects that with this deal, it will be able to extend
its market coverage in the infrastructure industry in Australia as
contract wins such as these amply reflect client confidence in
Jacobs in delivering strategic projects.
Per the second agreement, the company will continue rendering
its project management contractor (PMC) services to Marafiq's
investment program in The Kingdom of Saudi Arabia. The contract
pertains to a one-year extension period.
Following the contract award, Jacobs looks forward to
strengthening its long-term relationship with Marafiq, which, in
turn, will enhance the company's foothold in the Kingdom of Saudi
Arabia. Jacobs will be executing the project from its offices in Al
Khobar, Saudi Arabia; Winnersh, United Kingdom and Mumbai,
Jacobs' on-time service delivery as well as maintaining its
long-term relationships with the existing clientele have been
providing an edge over the industry players, such as
Foster Wheeler AG
). Moreover, the company's mounting international exposure through
contract wins and diversification have also been raising investor
confidence over time.
The current Zacks Consensus Estimates for Jacobs are 80 cents
and $2.91 per share for the fourth quarter of fiscal 2012 and
fiscal 2012, respectively. We currently have a long-term 'Neutral'
recommendation on the stock. Moreover, the company maintains a
Zacks #3 Rank, which translates into a short-term (1-3 months)
FLUOR CORP-NEW (FLR): Free Stock Analysis
FOSTER WHELR AG (FWLT): Free Stock Analysis
JACOBS ENGIN GR (JEC): Free Stock Analysis
To read this article on Zacks.com click here.