What happened

Limbach (LMB 3.69%) reported earnings results on Wednesday and blew away the consensus estimate for the quarter, and suggested there could be some upside to the full-year revenue estimate. Investors are excited about the construction specialist's potential, sending shares up more than 15%.

So what

Limbach specializes in the design, installation, and service of heating, ventilation, and air conditioning (HVAC) and other mechanical, electrical, plumbing, and building automation systems. The company earned $0.27 per share in its fiscal first quarter ending June 30, easily topping Wall Street's expectation for $0.05 per share in earnings.

Revenue came in at $124 million, $10 million better than consensus and up 7.5% year over year. Gross profit, meanwhile, was $28.5 million, up 33.7% from a year ago. The company's "owner direct relationships" (ODR), or servicing, segment was particularly strong, with sales up 18.1% year over year.

"We continued to execute on a number of fronts during the second quarter, with solid revenue growth in our ODR segment and improvement in gross margin in both segments," CEO Michael McCann said in a statement. "We continue to experience strong demand for our services in the ODR segment across a number of our target end markets as tight supply chain conditions persist."

Now what

Limbach sees full-year revenue coming in at between $490 million and $520 million, suggesting more upside than downside to the consensus $499 million estimate. And margins are heading in the right direction, with gross profit growing faster than sales.

This company to some extent is benefiting from supply chain woes. With new equipment hard to come by, demand to maintain and extend the life of older equipment is high. For Limbach, that is an opportunity to establish and build relationships with large enterprise customers.

Limbach sees the ability to expand those relationships to generate growth, while augmenting that organic growth with acquisitions. Investors are understandably excited about the opportunity.