Jacobs (JEC) Wins Two Four-Year Framework Contracts from DSRL

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Jacobs Engineering Group Inc. JEC has won two four-year framework contracts for Aerospace, Technology, Environmental and Nuclear or ATEN business to provide design and engineering services, as well as safety case production and peer review services. The contract was awarded by Dounreay Site Remediation Limited (DSRL), a site licensing company.

Jacobs will provide constructional, mechanical, and electrical services under the design and engineering services framework, valued at $15-19 million. Meanwhile, the company will provide control and informational services under safety case production and peer review contract, valued within $10-13 million.

Jacobs, providing full life-cycle solutions at Dounreay, will help DSRL in managing the chemical and radiological hazards in Europe.

The ongoing contract wins highlight Jacobs' efforts to earn high-end and differentiated ATEN work. The segment accounts for more than 29% of its total revenues.Importantly, the company's ATEN business is executing well and is positioned to deliver double digit year-over-year increase in profits in fiscal 2018, with continued strong growth in 2019 as well. Meanwhile, the company's backlog as of Jun 30, 2018 was $27.2 billion, increasing 47% year over year. Particularly, within the ATEN segment, backlogs were up 57.2% in the same period.

The company has been performing pretty well of late, generating higher revenues courtesy of ongoing contract wins, increased focus on high-value businesses and efficient project execution.

Share Price Performance

Shares of Jacobs, a Zacks Rank #2 (Buy) company, have broadly outperformed the industry over a year. Its shares have gained 31.8% compared with the industry's growth of 2% in the said period. The outperformance was backed by a solid earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average of 15.4%. Its revenues grew 47.1% from the year-ago quarter over the first nine months of 2018. Notably, Jacobs currently flaunts a VGM Score of B.

Other Stocks to Consider

Other top-ranked stocks in the industry are Fluor Corp. FLR , AECOM ACM and KBR, Inc. KBR . While Fluor sports a Zacks Rank #1 (Strong Buy), AECOM and KBR both carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Fluor' earnings for the current yearare expected to increase 39.3%.

AECOM surpassed earnings estimates in each of the past four quarters, resulting in an average positive surprise of 3.2%.

KBR surpassed earnings estimates in three of the past four quarters, delivering an average positive surprise of 12.3%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: JEC , KBR , ACM , FLR

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