The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Primoris Services crushed expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share didn't change.
Gross margins grew, operating margins improved, net margins contracted.
Primoris Services logged revenue of $373.1 million. The six analysts polled by S&P Capital IQ expected sales of $306.6 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $333.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.35. The six earnings estimates compiled by S&P Capital IQ predicted $0.22 per share on the same basis. GAAP EPS of $0.24 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.7%, 60 basis points better than the prior-year quarter. Operating margin was 8.1%, 10 basis points better than the prior-year quarter. Net margin was 3.3%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $354.6 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $1.50 billion. The average EPS estimate is $1.25.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 107 members out of 111 rating the stock outperform, and four members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Primoris Services a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Primoris Services is outperform, with an average price target of $17.33.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy
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