The 10-second takeaway
For the quarter ended March 31 (Q1), 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 grew significantly.
Margins dropped across the board.
MYR Group chalked up revenue of $240.2 million. The 12 analysts polled by S&P Capital IQ hoped for sales of $201.6 million on the same basis. GAAP reported sales were 60% higher than the prior-year quarter's $150.3 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 $0.29. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS of $0.29 for Q1 were 38% higher than the prior-year quarter's $0.21 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 10.9%, 350 basis points worse than the prior-year quarter. Operating margin was 4.2%, 80 basis points worse than the prior-year quarter. Net margin was 2.6%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $226.6 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $924.7 million. The average EPS estimate is $1.31.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 39 members out of 39 rating the stock outperform, and members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give MYR Group a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MYR Group is outperform, with an average price target of $27.70.
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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.