Engineering and construction company, Jacobs Engineering Group Inc. (JEC) recently announced the acquisition of Houston, Texas-based, Eagleton Engineering, LLC, for an undisclosed amount. Eagleton specializes in pipelines and related facilities.
Established in 1965, Eagleton has been successfully serving the oil and gas industry ever since. The company provides a range of facilities including detailed engineering and procurement, conceptual studies, route selection, surveying and mapping, right-of-way acquisition along with full turnkey responsibility.
With Eagleton’s experience and expertise, Jacobs is expected to achieve a greater foothold in the oil and gas industry through better midstream and upstream pipeline engineering, design and filed surveying services.
In the past, Eagleton has designed pipelines for installation and operation in various terrains and environment including industrial complexes, tropical, desert, mountainous, permafrost, tropical and congested urban areas.
Jacobs has been growing inorganically in the past few quarters. The company acquired several companies in fiscal first-quarter 2014 (ended Dec 2013), including Ilitha, Guimar Engenharia, MARMAC Field and Sinclair Knight Merz. Moreover, subsequent to the quarter, the company acquired FMHC Corporation. These acquisitions are expected to derive strong synergies in the coming quarters.
For the third quarter of 2014, the Zacks Consensus Estimate stands at 90 cents, reflecting a year-over-year growth of 12.4%, while for the fourth quarter the Zacks Consensus Estimate is pegged at $1.00, representing a year-over-year growth of 20.8%.
With a market capitalization of $7.9 billion, Jacobs carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry worth a watch include AECOM Technology Corporation (ACM), Fluor Corporation (FLR) and Quanta Services, Inc. (PWR). All these stocks carry a Zacks Rank #2 (Buy).
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