Jacobs (J) Wins United Utilities' Strategic Solutions Deal
Jacobs Engineering Group Inc. J received a contract from one of the U.K.'s largest listed water companies, United Utilities, to support program optimization for major capital works within its Strategic Solutions Team.
Per the deal, J will drive program and asset optimization, value engineering, innovation and standardization across United Utilities’ existing and new asset base, which will develop efficient and integrated solutions and will recommend ideal options.
Jacobs' technical advisories will provide feasibility and value management studies, commercial modeling, business case development, design and digital engineering, whole-life cost, best value assessments and more.
The total framework agreement is valued at approximately $211 million for the base contract period of six years with a five-year extension option.
Solid Project Execution to Drive Growth
Jacob's ability to execute projects efficiently has played a pivotal role in driving the company's performance in recent quarters. The continuous success in securing new contracts stands as evidence of this proficiency. As of the first quarter of fiscal 2024-end, the company disclosed a backlog of $29.6 billion, marking a 4.7% increase compared to the previous year. This growth underscores the sustained strong demand for Jacobs' consulting services.
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J’s shares have gained 15.8% in the past three months compared with the Zacks Technology Services industry’s 13% growth.
Earnings estimates for fiscal 2024 have increased to $8.06 per share from $8.05 in the past 60 days. The estimated figure suggests 11.9% year-over-year growth on 5.4% higher revenues.
Zacks Rank and Stocks to Consider
Currently, Jacobs carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Business Services sector.
AppLovin Corporation APP currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APP delivered a trailing four-quarter earnings surprise of 26.5%, on average. The Zacks Consensus Estimate for APP’s 2024 sales and earnings per share (EPS) indicates growth of 23.2% and 153.1%, respectively, from the prior-year levels.
Block, Inc. SQ currently sports a Zacks Rank of 1.
SQ delivered a trailing four-quarter earnings surprise of 10.8%, on average. The Zacks Consensus Estimate for SQ’s 2024 sales and EPS indicates growth of 12.8% and 68.3%, respectively, from the prior-year levels.
Duolingo, Inc. DUOL currently sports a Zacks Rank of 1.
DUOL delivered a trailing four-quarter earnings surprise of 111.5%, on average. The Zacks Consensus Estimate for DUOL’s 2024 sales and EPS indicates growth of 36.5% and 294.3%, respectively, from the prior-year levels.
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