Building systems company Limbach (NASDAQ: LMB) will be announcing earnings results this Tuesday after the bell. Here’s what you need to know.
Limbach missed analysts’ revenue expectations last quarter, reporting revenues of $173.5 million, up 21.9% year on year. It was a softer quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Is Limbach a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Limbach’s revenue to grow 18.4% year on year, slowing from the 37.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Limbach has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Limbach’s peers in the construction and maintenance services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. MYR Group delivered year-on-year revenue growth of 32.5%, beating analysts’ expectations by 8.9%, and APi reported revenues up 22.5%, topping estimates by 6.3%. MYR Group traded up 1.1% following the results while APi was also up 7.1%.
Read our full analysis of MYR Group’s results here and APi’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the construction and maintenance services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Limbach is down 2.7% during the same time and is heading into earnings with an average analyst price target of $75 (compared to the current share price of $48.57).
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