We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Aegion's Insituform Wins Water Pipelines Rehabilitation Deal
Read MoreHide Full Article
Aegion Corporation’s subsidiary — Insituform Technologies USA, LLC — has received a contract to rehabilitate more than 7,000 linear feet of pressurized water pipelines in Portsmouth, VA.
Under the project, which is slated to begin this fall and conclude by 2021-end, Insituform Technologies will rehabilitate 3,525 linear feet of 8-inch cast iron fire-suppression system pipeline; 1,700 linear feet of 8-inch cast iron drain lines; along with 1,464 linear feet of 8-inch cast iron drain lines in maintenance tunnels under a tunnel roadway.
For the project, Insituform will employ Aegion’s proprietary, high-tenacity, polyester-reinforced liner — Thermopipe.
Aegion’s Flagship Insituform North America Business a Boon
Aegion’s flagship Insituform North America business’ leading market position, and strength and stability of municipal water as well as wastewater markets have been benefiting the company over the last few quarters. The unit has been generating strong revenues, new orders and backlog, underpinned by significant exposure to more stable and resilient North American municipal water as well as wastewater markets.
Aegion remains well positioned for 2020 with five months’ work in backlog for the Insituform North America business. Also, it continues to see strong municipal order trends.
Backlog at the end of second-quarter 2020 amounted to $669 million. Excluding the impact of exited or to-be-exited businesses, backlog grew 4% year over year on the back of segmental growth.
Although the company’s second-quarter revenues declined due to COVID-19-related disruptions and softness across the majority of the business, the flagship Insituform North America business generated strong revenues as well as new orders.
However, Aegion’s shares have underperformed the industry over the past three months. Although the company reported better-than-expected earnings for second-quarter 2020, it expects Q3 earnings to decline from a year ago. Aegion expects revenues to decline across all businesses, except the Infrastructure Solutions unit, in the third quarter due to COVID-19 disruptions. Also, it expects adjusted EPS within 25-35 cents, indicating a decline from 40 cents reported a year ago. This might have dented investors’ sentiment to some extent.
Nevertheless, bottom-line estimates for 2020 have been trending upward over the past 60 days, depicting analysts’ optimism over the company’s earnings growth potential. Its exceptional Infrastructure Solutions performance, continuous contract wins and strong cost-and-cash management across the business bode well.
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Aegion's Insituform Wins Water Pipelines Rehabilitation Deal
Aegion Corporation’s subsidiary — Insituform Technologies USA, LLC — has received a contract to rehabilitate more than 7,000 linear feet of pressurized water pipelines in Portsmouth, VA.
Under the project, which is slated to begin this fall and conclude by 2021-end, Insituform Technologies will rehabilitate 3,525 linear feet of 8-inch cast iron fire-suppression system pipeline; 1,700 linear feet of 8-inch cast iron drain lines; along with 1,464 linear feet of 8-inch cast iron drain lines in maintenance tunnels under a tunnel roadway.
For the project, Insituform will employ Aegion’s proprietary, high-tenacity, polyester-reinforced liner — Thermopipe.
Aegion’s Flagship Insituform North America Business a Boon
Aegion’s flagship Insituform North America business’ leading market position, and strength and stability of municipal water as well as wastewater markets have been benefiting the company over the last few quarters. The unit has been generating strong revenues, new orders and backlog, underpinned by significant exposure to more stable and resilient North American municipal water as well as wastewater markets.
Aegion remains well positioned for 2020 with five months’ work in backlog for the Insituform North America business. Also, it continues to see strong municipal order trends.
Backlog at the end of second-quarter 2020 amounted to $669 million. Excluding the impact of exited or to-be-exited businesses, backlog grew 4% year over year on the back of segmental growth.
Although the company’s second-quarter revenues declined due to COVID-19-related disruptions and softness across the majority of the business, the flagship Insituform North America business generated strong revenues as well as new orders.
However, Aegion’s shares have underperformed the industry over the past three months. Although the company reported better-than-expected earnings for second-quarter 2020, it expects Q3 earnings to decline from a year ago. Aegion expects revenues to decline across all businesses, except the Infrastructure Solutions unit, in the third quarter due to COVID-19 disruptions. Also, it expects adjusted EPS within 25-35 cents, indicating a decline from 40 cents reported a year ago. This might have dented investors’ sentiment to some extent.
Nevertheless, bottom-line estimates for 2020 have been trending upward over the past 60 days, depicting analysts’ optimism over the company’s earnings growth potential. Its exceptional Infrastructure Solutions performance, continuous contract wins and strong cost-and-cash management across the business bode well.
Zacks Rank
Aegion — which shares space with TopBuild Corp. (BLD - Free Report) , Gibraltar Industries, Inc. (ROCK - Free Report) and Installed Building Products, Inc. (IBP - Free Report) in the same industry — currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>