Yet Another Contract Win for Jacobs - Analyst Blog
March 09 2012 - 8:00AM
Zacks
Jacobs Engineering Group,
Inc. (JEC) recently announced that it has received a $1
billion contract award from the Metropolitan St. Louis Sewer
District (MSD). This shall pertain to providing engineering
services for the Lower & Middle River des Peres CSO Controls
Systems Improvements at St. Louis, Missouri.
The Metropolitan St. Louis Sewer
District (MSD) caters to both, residential and industrial customers
providing them with wastewater collection and other treatment
services at St. Louis. The current project given to Jacobs is a
part of MSD’s CSO Long-Term Control Plan (LTCP) and its proposed
federal consent decree.
The contract awarded includes
providing of four main facilities: tunnels, high rate treatment
systems, pump stations and near surface facilities. Jacobs
understands the arcane nature of the project it has been granted as
currently it is the largest in the LTCP bracket.
We believe that a company of repute
and approbatory goodwill such as Jacobs shall most certainly be
able to meet the high standards desired from this venture.
Management is also quite upbeat about rendering quality services,
judging by the interminable saga of contract wins it has been
garlanded with of late. The most recent ones include the laudatory
U.S. General Services Administration (GSA) task order and the Air
Force Alliant Contract.
Not long ago, the company reported
its first quarter financial results of fiscal 2012, whereby it
reported an annual increase of about 12% in total revenues coming
at $2.6 billion. Moving forward, the company is quite hopeful of a
similarly strong second fiscal quarter.
Jacobs, presently appears to be in
a formidable position to grapple with its competitors which include
Shaw Group Inc. (SHAW), CDI Corp.
(CDI) and Stantec Inc. We continue to maintain a
Neutral recommendation on Jacobs. Our view is supported with a
Zacks #3 Rank on the stock which translates into a short-term
rating of Hold.
CDI CORP (CDI): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
SHAW GROUP INC (SHAW): Free Stock Analysis Report
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