Twin Contracts for Jacobs - Analyst Blog
January 16 2013 - 8:10AM
Zacks
Jacobs Engineering Group
Inc. (JEC) was awarded a contract for the improvement in
traffic flow along with safety on a state highway from the Texas
Department of Transportation (TxDOT).
The project work entails rendering
engineering and environmental services on the Interstate Highway
820 and State Highway 121 in Fort Worth, Texas, for expansion of
the existing highway through the introduction of tolled managed
lanes. The total cost related to the project is estimated to be
$160 million, with roughly $15.7 million allocated for the
contract.
The contract is expected to be
executed in phases to minimize the possibility of shortage of funds
at any given point of time.
In another press release, the
company declared yet another contract win. The second deal is with
Reliance Industries Limited in India. The contract, with an
undisclosed value, includes providing engineering and procurement
services to a cracker complex at the refining and petrochemical
complex in Jamnagar, Gujarat in India. The company’s offices in
Mumbai will be responsible for the execution of the contract.
This adds up to a series of four
contracts for Jacobs, received in the first 15 days of 2013. The
contract wins make us optimistic about the company’s future; while
the results for the first quarter of fiscal 2013, slated for
release in a week’s time, are still awaited.
Jacobs is one of the world's
largest and most diverse providers of technical, professional and
construction services. We currently maintain a Neutral
recommendation on the stock. Jacobs also bears a Zacks Rank #3
(Hold). Its peers Willdan Group (WLDN) and
National Technical Systems Inc. (NTSC) hold a
Zacks Rank #2 (Buy).
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
(NTSC): ETF Research Reports
(WLDN): ETF Research Reports
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