Specialty construction contractor company EMCOR (NYSE: EME) will be reporting earnings this Thursday before market hours. Here’s what investors should know.
EMCOR beat analysts’ revenue expectations by 4.9% last quarter, reporting revenues of $4.30 billion, up 17.4% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is EMCOR a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting EMCOR’s revenue to grow 16% year on year to $4.29 billion, in line with the 15.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.53 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. EMCOR has missed Wall Street’s revenue estimates twice over the last two years.
Looking at EMCOR’s peers in the construction and engineering segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Comfort Systems delivered year-on-year revenue growth of 35.2%, beating analysts’ expectations by 13.2%, and Orion reported flat revenue, in line with consensus estimates. Comfort Systems traded up 18.9% following the results.
Read our full analysis of Comfort Systems’s results here and Orion’s results here.
There has been positive sentiment among investors in the construction and engineering segment, with share prices up 3.1% on average over the last month. EMCOR is up 17.4% during the same time and is heading into earnings with an average analyst price target of $716 (compared to the current share price of $752.36).
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