Jacobs (J) Wins Contract to Improve ATL Operations, Aids P&PS

Jacobs Engineering Group Inc. J won a contract from Hartsfield-Jackson Atlanta International Airport (ATL) to develop a strategy for the operations, maintenance, modernization and future growth of physical assets throughout the latter’s 4,700-acre campus.

Per the deal, Jacobs will assess the Department of Aviation's current asset management program, develop strategies, processes and asset management plans, evaluate the condition of facilities and provide support and training for enterprise asset management systems. Its consulting team will bring measurable improvements in operational performance, sustainability, risk mitigation resiliency, investment planning and total cost of ownership.

Jacobs’ executive vice president and president of People & Places Solutions, Patrick Hill, stated, "We'll consult with ATL to develop a strategic asset management program that supports their vision and delivers on our commitment to provide custom strategic solutions that leverage our deep domain knowledge."

Solid Project Execution to Drive Growth

Jacobs is witnessing accelerated demand for infrastructure, water, environment, space, broadband, cybersecurity and life sciences consulting services. Efficient project execution has been a primary factor driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to this fact.

At fiscal second quarter-end, it reported a backlog of $27.8 billion, up 8.7% year over year. This reflects persistent solid demand for Jacobs' consulting services. Of this backlog, CMS accounted for $10.5 billion, up from $9.78 billion reported a year ago, which provided strong visibility into the base business. P&PS backlog at quarter-end was $16.96 billion, up from $15.5 billion a year ago.

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Although J’s shares have underperformed the Zacks Engineering - R and D Services industry this year, 2022 earnings estimates have moved up in the past two months, reflecting 13.2% year over year growth. The trend is expected to continue in the near term, courtesy of its solid results for the first half of fiscal 2022.

Zacks Rank & Key Picks

Currently, Jacobs carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

KBR, Inc. KBR — currently carrying a Zacks Rank #2 (Buy) — provides professional services and technologies across the asset and program life-cycle within government services and hydrocarbons industries worldwide. Its mission-critical government services, high-end and differentiated government business work, strong margin performance, proprietary technology solutions and a significant increase in backlog (particularly in Government Solution) are expected to boost earnings for 2022.

KBR’s 2022 earnings are likely to rise 3.7%. This Zacks Rank #3 company has seen a 2% upward estimate revision for 2022 earnings over the past 30 days.

AECOM ACM — currently carrying a Zacks Rank #2 — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and those in environmental, energy and water businesses.

AECOM’s expected earnings growth rate for 2022 is 21.6%. The consensus mark for its 2022 earnings has moved up to $3.43 per share from $3.40 over the past 60 days.

Sterling Construction Company, Inc. STRL — a Zacks Rank #2 company — has been benefiting from broad-based growth across the E-Infrastructure, Building and Transportation solutions segments.

The consensus mark for Sterling’s 2022 earnings has rose to $2.61 per share from $2.60 in the past 30 days. This suggests 7.9% year-over-year growth.

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