Jacobs Bags another Contract - Analyst Blog
March 21 2012 - 7:30AM
Zacks
Jacobs Engineering Group
Inc. (JEC) won a series of contracts of late which
depicts the company’s growing popularity. Of these, the most recent
one is a $50 million contract from Teck Metals Ltd.
Jacobs, under the terms of the
contract, will design and supply a new sulphuric acid plant at Teck
Metals’ Trail operation in Canada. The plant will substitute two
existing plants and will enable better operating facilities at the
site. Jacobs has been in relationship with Teck Metals over the
years and this contract further strengthens the bond between the
two companies.
Of late in March 2012, Jacobs was
awarded a $137 million contract from NASA to work at its Michoud
Assembly Facility, a deal from Vale Canada for designing and
supplying a new sulphuric acid plant. In addition, the company won
a $1 billion contract from the Metropolitan St. Louis Sewer
District (MSD).
The current Zacks Consensus
Estimate for the first quarter is 74 cents, representing a year-
over-year increase of 17.46%. Estimates for fiscal years 2012 and
2013 are $3.05 and $3.41, reflecting a year-over-year growth of
15.00% and 12.05%, respectively.
Strategic contract wins and
acquisitions across geographies and services all bode well for
Jacobs and are also expected to fuel growth for the company in the
quarter ahead. Further, steady backlog and better labor utilization
will accelerate growth and enable multiple expansions.
Jacobs Engineering Group Inc. is
one of the world's largest engineering and construction companies
providing services to a variety of industrial, commercial and
government clients across a global network. The company directly
competes with its peers, such as Fluor Corporation
(FLR) and Foster Wheeler AG (FWLT).
We currently have a Neutral
recommendation on the stock. Jacobs has a Zacks #3 Rank, which
implies a short-term (1-3 months) Hold rating.
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
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