Jacobs (J) Boosts Backlog With New Water Recycling Program
Jacobs Solutions Inc. J has been appointed by Inland Empire Utilities Agency (IEUA) in California for a regional water management program.
Jacobs will be providing program management, owners engineering, as well as strategic funding advisory services for the water recycling program. These services will encompass indirect potable reuse or IPR technique for water recycling. This technique is incorporated to generate a more sustainable as well as drought-resilient local water supply in the Chino Basin, one of the largest groundwater storage basins in southern California.
Water Management Program in Details
The program comprises a chain of new integrated water infrastructure projects, which include intra-basin recycled water conveyance, groundwater injection and replenishment and an advanced water purification facility. These will help to produce drinkable/usable water through groundwater augmentation and increase local supply reliability, as well as manage the water quality in the Chino Basin.
The owners engineering and strategic funding advisory services, which are to be delivered by Jacobs, encompass the pilot/demonstration unit and the final delivery of the advanced water purification facility, injection wells and water conveyance systems.
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Shares of Jacobs inched up 0.24% on Aug 10 during the trading session. Also, the stock has risen 9.8% in the past month against the Zacks Technology Services industry’s decline of 2.5%.
Robust Backlog Growth
Jacobs has been experiencing increased demand for consulting services in various sectors, including infrastructure, water, environment, space, broadband, cybersecurity and life sciences. The company's strong performance in recent quarters can be attributed to efficient project execution and the ongoing contract wins bear testimony to the fact. This is reflected in the solid backlog level, which was $28.9 billion at the end of the third quarter of fiscal 2023, representing a 2.9% increase from the prior year. This growth can be attributed to 13% year-over-year operating profit growth in the People and Places Solutions (P&PS) segment.
Of the aforementioned backlog value, the Critical Mission Solutions segment accounted for $8.097 billion, which provided strong visibility into the base business, and P&PS accounted for $17.5 billion in the third quarter of fiscal 2023.
Although foreign exchange risks, high costs and expenses are major concerns, Jacobs expects to benefit from the strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply-chain investments in the upcoming period. This will help the company to maintain positive momentum in the near term.
Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Business Services sector are TriNet Group, Inc. TNET, Parsons Corporation PSN and Vacasa, Inc. VCSA.
TriNet currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TNET delivered a four-quarter average earnings surprise of 84%. The company’s shares have risen 14.9% in the past year. The Zacks Consensus Estimate for TNET’s 2023 sales and earnings per share (EPS) indicates decline of 4.7% and 2.7%, respectively, from the prior-year reported figures.
Parsons currently sports a Zacks Rank of 1. PSN has a four-quarter average earnings surprise of 5.2%. The stock has risen 27.1% in the past year.
The Zacks Consensus Estimate for PSN’s 2023 sales and EPS indicates growth of 18.5% and 22.7%, respectively, from the prior-year reported figures.
Vacasa currently sports a Zacks Rank of 1. VCSA has a trailing four-quarter earnings surprise of 76.3%, on average. Shares of the company have declined 85.7% in the past year.
The Zacks Consensus Estimate for VCSA’s 2023 sales and EPS indicates decline of 8.3% and 220%, respectively, from the year-ago reported levels.
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