Jacobs (J) Wins $28M Florida Turnpike ITS Management Contract
Jacobs Solutions Inc. J secured a $28-million contract from Florida's Turnpike Enterprise, a division of the Florida Department of Transportation, to operate and maintain Intelligent Transportation Systems (ITS).
Per the deal, Jacobs will oversee traffic operations for over 500 miles of ITS-connected roadway infrastructure across the state.
This five-year contract encompasses various engineering, monitoring and support services. The company will be responsible for managing traffic operations, providing traffic engineering services, and overseeing the maintenance and security of ITS infrastructure.
In addition to its core responsibilities, Jacobs will also manage emergency and weather event response plans. It will collaborate with Florida's Turnpike Enterprise to explore and assess advanced data systems to enhance safety and mobility across the transportation network.
The partnership combines innovative program management and advanced transportation technology to make travel smarter, safer, and more connected for Florida's residents and visitors.
J’s stock dropped 0.37% in the day trading session on Sep 7.
Robust Backlog
Jacobs has been witnessing a surge in demand for its consulting services across diverse sectors, encompassing infrastructure, water management, environmental solutions, space exploration, broadband, cybersecurity, and life sciences. The company's recent impressive performance owes much to its effective project execution, underscored by a consistent stream of contract wins.
A testament to this success is the robust backlog level, which stood at $28.9 billion by the close of the third quarter of fiscal 2023, up 2.9% from the previous year’s levels. This growth can be attributed mainly to the People and Places Solutions (P&PS) segment, which achieved an impressive 13% year-over-year operating profit growth.
Within this backlog, the Critical Mission Solutions segment contributed $8.097 billion, providing substantial visibility into the core business, while P&PS accounted for $17.5 billion during the third quarter of fiscal 2023
Price Performance
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In the past three months, shares of Jacobs have increased 13.3% against the industry’s 4.5% fall. A solid backlog level depicts accelerating demand for Jacobs’s consulting services for infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Also, focus on generating efficiencies through digital and technological solutions and solid project execution bodes well.
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 DocuSign, Inc. DOCU.
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 14.7% in the past year.
The Zacks Consensus Estimate for TNET’s 2023 sales and earnings per share (EPS) indicates a decline of 4.7% and 2.7%, respectively, from the prior-year reported figures.
Parsons currently flaunts a Zacks Rank of #1. PSN has a four-quarter average earnings surprise of 5.2%. The stock has risen 18.4% in the past year.
The Zacks Consensus Estimate for PSN’s 2023 sales and EPS indicates growth of 18.7% and 23.2%, respectively, from the prior-year reported figures.
DocuSign currently sports a Zacks Rank of #2 (Buy). DocuSign has a trailing four-quarter earnings surprise of 27.1% on average. Shares of the company have declined 10.9% in the past year.
The Zacks Consensus Estimate for DocuSign’s fiscal 2024 sales and EPS indicates a decline of 8.1% and 24.1%, respectively, from the year-ago reported levels.
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