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Jacobs (J) to Manage $800M Infrastructure Boost for King County
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Jacobs Solutions Inc. (J - Free Report) has been awarded a significant contract to provide program management and consultancy services for the King County Wastewater Treatment Division. This $800 million project aims to enhance water quality and system resiliency for approximately 2 million residents in Seattle and the central Puget Sound region.
Jacobs will oversee the South Treatment Plant Facility Program from initiation through design, construction, and commissioning. Located in Renton, this facility treats up to 115 million gallons of wastewater per day during wet weather and 96 million gallons per day during dry weather. Additionally, it features on-site educational programming and a demonstration farm producing 4,000 pounds of food annually for a local foodbank.
This contract further solidifies Jacobs' longstanding relationship with King County, building on past successful collaborations. Notably, Jacobs has played a pivotal role in key infrastructure projects such as the Georgetown Wet Weather Treatment Station and the Brightwater Treatment Plant.
Jacobs' proven track record in managing complex infrastructure programs globally, including the Port of San Francisco Waterfront Resilience Program and the Thames Tideway Tunnel, underscores its capability to deliver this critical project successfully. This new contract not only strengthens Jacobs' portfolio but also reinforces its position as a leader in infrastructure and water quality management.
Share Price Performance
Image Source: Zacks Investment Research
Shares of the company have gained 6.1% so far this year compared with the Zacks Technology Services industry’s 18.4% growth. Although J’s shares have underperformed the industry, its earnings per share (EPS) estimates for fiscal 2024 suggest 10.8% year-over-year growth.
This solid project execution is bolstered by ongoing backlog growth. At the end of the fiscal second quarter, Jacobs reported a backlog of $29.4 billion, representing a 2% increase year over year. This growth reflects a sustained strong demand for Jacobs' consulting services. Specifically, the People & Places Solutions segment had a backlog of $17.93 billion in the fiscal second quarter, up from $17.56 billion in the year-ago quarter. The Critical Mission Solutions segment reported a backlog of $8.45 billion, up from $8.14 billion a year ago.
However, increases in direct costs due to ongoing inflationary pressures of labor, materials and currency woes are a concern.
Zacks Rank & Key Picks
Currently, Jacobs carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks in the same space:
APP shares have gained 110% year to date (YTD). APP delivered a trailing four-quarter earnings surprise of 60.9%, on average. The Zacks Consensus Estimate for APP’s 2024 sales and EPS indicates growth of 31.7% and 202%, respectively, from the prior-year levels.
Duolingo, Inc. (DUOL - Free Report) currently sports a Zacks Rank of 1. DUOL delivered a trailing four-quarter earnings surprise of 115.2%, on average. Shares of the company have lost 14.5% YTD.
The Zacks Consensus Estimate for DUOL’s 2024 sales and EPS indicates growth of 37.8% and 397.1%, respectively, from the prior-year levels.
SPX Technologies, Inc. (SPXC - Free Report) presently carries a Zacks Rank of 2 (Buy). SPXC has a trailing four-quarter earnings surprise of 13.9%, on average. Shares of the company have gained 40.2% YTD.
The Zacks Consensus Estimate for SPXC’s 2024 sales and EPS indicates an increase of 14.7% and 24.4%, respectively, from the year-ago period’s reported levels.
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Jacobs (J) to Manage $800M Infrastructure Boost for King County
Jacobs Solutions Inc. (J - Free Report) has been awarded a significant contract to provide program management and consultancy services for the King County Wastewater Treatment Division. This $800 million project aims to enhance water quality and system resiliency for approximately 2 million residents in Seattle and the central Puget Sound region.
Jacobs will oversee the South Treatment Plant Facility Program from initiation through design, construction, and commissioning. Located in Renton, this facility treats up to 115 million gallons of wastewater per day during wet weather and 96 million gallons per day during dry weather. Additionally, it features on-site educational programming and a demonstration farm producing 4,000 pounds of food annually for a local foodbank.
This contract further solidifies Jacobs' longstanding relationship with King County, building on past successful collaborations. Notably, Jacobs has played a pivotal role in key infrastructure projects such as the Georgetown Wet Weather Treatment Station and the Brightwater Treatment Plant.
Jacobs' proven track record in managing complex infrastructure programs globally, including the Port of San Francisco Waterfront Resilience Program and the Thames Tideway Tunnel, underscores its capability to deliver this critical project successfully. This new contract not only strengthens Jacobs' portfolio but also reinforces its position as a leader in infrastructure and water quality management.
Share Price Performance
Image Source: Zacks Investment Research
Shares of the company have gained 6.1% so far this year compared with the Zacks Technology Services industry’s 18.4% growth. Although J’s shares have underperformed the industry, its earnings per share (EPS) estimates for fiscal 2024 suggest 10.8% year-over-year growth.
This solid project execution is bolstered by ongoing backlog growth. At the end of the fiscal second quarter, Jacobs reported a backlog of $29.4 billion, representing a 2% increase year over year. This growth reflects a sustained strong demand for Jacobs' consulting services. Specifically, the People & Places Solutions segment had a backlog of $17.93 billion in the fiscal second quarter, up from $17.56 billion in the year-ago quarter. The Critical Mission Solutions segment reported a backlog of $8.45 billion, up from $8.14 billion a year ago.
However, increases in direct costs due to ongoing inflationary pressures of labor, materials and currency woes are a concern.
Zacks Rank & Key Picks
Currently, Jacobs carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks in the same space:
AppLovin Corporation (APP - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APP shares have gained 110% year to date (YTD). APP delivered a trailing four-quarter earnings surprise of 60.9%, on average. The Zacks Consensus Estimate for APP’s 2024 sales and EPS indicates growth of 31.7% and 202%, respectively, from the prior-year levels.
Duolingo, Inc. (DUOL - Free Report) currently sports a Zacks Rank of 1. DUOL delivered a trailing four-quarter earnings surprise of 115.2%, on average. Shares of the company have lost 14.5% YTD.
The Zacks Consensus Estimate for DUOL’s 2024 sales and EPS indicates growth of 37.8% and 397.1%, respectively, from the prior-year levels.
SPX Technologies, Inc. (SPXC - Free Report) presently carries a Zacks Rank of 2 (Buy). SPXC has a trailing four-quarter earnings surprise of 13.9%, on average. Shares of the company have gained 40.2% YTD.
The Zacks Consensus Estimate for SPXC’s 2024 sales and EPS indicates an increase of 14.7% and 24.4%, respectively, from the year-ago period’s reported levels.