Infrastructure construction company Primoris (NYSE:PRIM) will be reporting earnings tomorrow after market close. Here’s what you need to know.
Primoris beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $1.65 billion, up 7.8% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Primoris a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Primoris’s revenue to grow 5.6% year on year to $1.60 billion, slowing from the 14% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.75 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Primoris has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.3% on average.
Looking at Primoris’s peers in the construction and maintenance services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Construction Partners delivered year-on-year revenue growth of 41.6%, beating analysts’ expectations by 9.7%, and Matrix Service reported revenues up 6.9%, topping estimates by 1.1%. Construction Partners traded down 3.6% following the results while Matrix Service’s stock price was unchanged.
Read our full analysis of Construction Partners’s results here and Matrix Service’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the construction and maintenance services stocks have shown solid performance, the group has generally underperformed, with share prices down 6.2% on average over the last month. Primoris is down 4.3% during the same time and is heading into earnings with an average analyst price target of $89.88 (compared to the current share price of $66.08).
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