Energy and construction materials company MDU Resources (NYSE: MDU) will be reporting results tomorrow before market hours. Here’s what to look for.
MDU Resources missed analysts’ revenue expectations by 32.3% last quarter, reporting revenues of $535.5 million, down 52.8% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations.
Is MDU Resources a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting MDU Resources’s revenue to decline 46.2% year on year to $653.1 million, a further deceleration from the 15.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 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. MDU Resources has missed Wall Street’s revenue estimates six times over the last two years.
Looking at MDU Resources’s peers in the construction and engineering segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Quanta delivered year-on-year revenue growth of 23.9%, beating analysts’ expectations by 6.2%, and Ameresco reported revenues up 18.2%, topping estimates by 14.9%. Quanta traded up 9.8% following the results while Ameresco was also up 11.8%.
Read our full analysis of Quanta’s results here and Ameresco’s results here.
There has been positive sentiment among investors in the construction and engineering segment, with share prices up 15.1% on average over the last month. MDU Resources is up 12.4% during the same time and is heading into earnings with an average analyst price target of $19.75 (compared to the current share price of $17.54).
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