The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MYR Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted.
Margins dropped across the board.
MYR Group booked revenue of $234.3 million. The 13 analysts polled by S&P Capital IQ looked for revenue of $202.3 million on the same basis. GAAP reported sales were 51% higher than the prior-year quarter's $155.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.28. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. GAAP EPS of $0.28 for Q4 were 6.7% lower than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.5%, 360 basis points worse than the prior-year quarter. Operating margin was 3.8%, 250 basis points worse than the prior-year quarter. Net margin was 2.5%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $184.0 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $883.4 million. The average EPS estimate is $1.36.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 35 members out of 35 rating the stock outperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give MYR Group a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MYR Group is buy, with an average price target of $27.83.
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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.