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.
Over the decades, small-cap stocks, like Primoris Services have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Primoris Services to My Watchlist.
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