Jacobs Engineering Group Inc. (JEC) recently announced a 12-month extension of its existing contract, signed in Nov 2013, with EDF Energy Nuclear Generation Limited. The contract value has not been disclosed.
Per the terms of the agreement, Jacobs will provide engineering and design services, technical consultancy, safety and environmental disciplines for EDF Energy’s eight power stations in the United Kingdom. These power stations have a combined electricity generation capacity of 8.8 million kilowatts.
In addition, EDF Energy has provided an option of an additional 12-month extension of this contract.
Barely a month ago, Jacobs was awarded a contract by the Civil Engineering and Development Department of the Government of the Hong Kong Special Administrative Region. The contract required the company to manage and operate services for the Public Works Regional Laboratory.
With its strong contract pipeline, Jacobs caters to an array of sectors like oil and gas, petrochemical, mining, IT services and power. The company presently has a significant share in the huge global infrastructure market, which is expected to grow further in the quarters ahead.
At the time of exiting fiscal third-quarter 2014 (ended Jun 27, 2014), Jacobs’ project backlog was $18.5 billion, rising 7.6% from $17.2 billion in the year-ago quarter. It includes backlog of $12.3 billion from the Technical Professional Services segment, with the remainder coming from the Field Services component.
The Zacks Consensus Estimate for Jacobs Engineering Group is pegged at $2.71 for fiscal 2014 and $3.86 for fiscal 2015, representing year-over-year decline of 16.2% and growth of 42.8%, respectively. Moreover, the company has an Earnings ESP of +3.89% for fiscal 2015.
With a market capitalization of $7.1 billion, Jacobs Engineering Group currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Willdan Group, Inc. (WLDN), VSE Corp. (VSEC) and CACI International Inc. (CACI). While Willdan Group sports a Zacks Rank #1 (Strong Buy), VSE Corp. and CACI International hold a Zacks Rank #2 (Buy).
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