Primoris Services Corporation ( PRIM Quick Quote PRIM - Free Report) is slated to report third-quarter 2020 results on Nov 6, before the opening bell. In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 94.3% and 1.7%, respectively. Also, earnings and revenues grew 94.3% and 15% from the respective year-ago reported figures. The company’s earnings topped the consensus mark in two of the last four quarters and missed on the other two occasions, with the average negative surprise being 2%. Earnings & Revenue Expectations
The Zacks Consensus Estimate for Primoris’ third-quarter earnings is pegged at 67 cents per share, implying a 4.3% decline from a year ago. The consensus estimate for revenues is $915.2 million, indicating 5.8% year-over-year growth.
Factors to Note
The company’s revenues are expected to have increased in the third quarter, courtesy of higher demand from gas and electric utility markets, and the solar market. Segment wise, headwinds related to global demand created by the pandemic and low energy prices could have resulted in some revenue softness in the third quarter for the Civil segment. For the Power, Industrial, & Engineering segment, solid performance in the renewables market backed by tailwinds such as state renewable energy mandates and the push for clean energy continued to drive growth. However, volatility in energy markets and challenging industrial markets are likely to reflect on the segment’s quarterly results.
For the Utilities & Distribution segment, multiple awards on a major pipeline replacement project with a large utility are likely to aid the segment’s results. Meanwhile, for the Transmission & Distribution segment, cost-reduction initiatives and improved execution are expected to have boosted margins. Finally, for the Pipeline & Underground segment — accounting for 31.9% of total revenues — is expected to have benefited from new awards. Greater activities for smaller-diameter interstate pipeline work are expected to have acted as tailwinds. What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Primoris this time around. The combination of a positive
Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks Rank: Primoris — which shares space with Dycom Industries Inc. ( DY Quick Quote DY - Free Report) , EMCOR Group Inc. ( EME Quick Quote EME - Free Report) and MasTec Inc. ( MTZ Quick Quote MTZ - Free Report) in the Zacks Building Products - Heavy Construction industry — currently carries a Zacks Rank #3. You can see . the complete list of today’s Zacks #1 Rank stocks here These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>