Jacobs Engineering Group Inc. (JEC) has received a five year contract from the City of Killeen, Texas to provide professional services for the Killeen-Fort Hood Regional Airport and Robert Gray Army Airfield. However, the value and the terms of the contract have not been disclosed.
According to the contract, Jacobs will provide professional services for FAA (Federal Aviation Administration) Grant and PFC (Passenger Facility Charge) funded projects at the Killeen-Fort Hood Regional Airport and Robert Gray Army Airfield for five years to support various infrastructure-expansion initiatives.
Jacobs is one of the world’s largest and most diverse providers of technical, professional and construction services. Jacobs’ diversification in terms of markets, geography and services will continue to facilitate future growth.
Recently, Jacobs reported in-line results for the first quarter of fiscal 2010. Net earnings were $72.4 million, or 58 cents per share compared to $116.4 million or 94 cents during the same period in fiscal 2009. The EPS exactly matched the Zacks Consensus Estimate. The fall in earnings was attributable to project cancellations in its construction services division.
Looking ahead, management has reiterated its full-year 2010 guidance and expects earnings per share in the range of $2.00 to $2.60.
Estimate Revision Trend
Based on the above, none of the analysts changed their estimates for fiscal years 2010 and 2011. Thus, the estimates remained at $2.37 and $2.65, respectively.
Neutral Stance
Jacobs’ cost control initiative and innumerable contract will pull it through the present difficult environment. However, the very cyclical nature of its business, as well as its heavy dependence on third parties, is discouraging. Jacobs’ also faces immense risks as it operates in a highly-competitive environment.
Both our short-term and long-term rating on the stock remain Neutral with the Zacks #3 Rank.
Read the full analyst report on “JEC”
Zacks Investment Research
