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Aegion (AEGN) Q1 Earnings & Revenues Lag Estimates, Margin Up
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Aegion Corporation reported lower-than-expected results for first-quarter 2021. Its earnings and revenues lagged the Zacks Consensus Estimate. Although revenues declined year over year for the quarter, its earnings improved significantly on solid Insituform and Corrosion Protection businesses.
Charles R. Gordon, president and chief executive officer of Aegion said, “Aegion delivered solid first quarter results that reflect the ongoing strength of our core Insituform business as well as significant profitability improvements from our Corrosion Protection businesses. We remain focused on continuing to drive strong results as we advance efforts toward the close of our previously announced transaction with New Mountain.”
Owing to the proposed merger deal with New Mountain Capital, L.L.C., Aegion will not host a conference call to discuss earnings results or provide a financial outlook. The transaction is expected to close on May 17, subject to Aegion’s stockholder approval and other customary closing conditions. Post merger, it will become a private company.
Earnings & Revenues Discussion
Aegion reported adjusted earnings per share of 8 cents, missing the consensus mark of 13 cents by 38.5% but increased eight times from the year-ago figure.
Aegion Corporation Price, Consensus and EPS Surprise
Total revenues of $181 million missed the consensus mark of $196 million by 7.7%. The reported figure was down 7.7% year over year due to the negative impact of exited or restructured businesses. Its core Insituform North America unit’s revenues remained on par with the prior-year level despite weather challenges.
Quarter-end backlog was $662 million, which increased 3% from the prior year.
Operating Highlights
Adjusted gross margin of 23.6% expanded 290 basis points (bps) from the year-ago period. Adjusted operating margin of 3.3% was up 180 bps year over year. The upside was driven by significant profitability improvements in the Corrosion Protection segment, primarily from the Corrpro North America business.
Financial Update
Aegion’s cash and cash equivalents as of Mar 31, 2021 were $93.3 million, up from $94.8 million at 2020-end. Long-term debt, less current maturities, totaled $186.6 million compared with $194 million at 2020-end. Net cash provided by operations was $1.2 million in the first three months of 2021 versus $8.1 million cash used in operations in the comparable year-ago period.
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Aegion (AEGN) Q1 Earnings & Revenues Lag Estimates, Margin Up
Aegion Corporation reported lower-than-expected results for first-quarter 2021. Its earnings and revenues lagged the Zacks Consensus Estimate. Although revenues declined year over year for the quarter, its earnings improved significantly on solid Insituform and Corrosion Protection businesses.
Charles R. Gordon, president and chief executive officer of Aegion said, “Aegion delivered solid first quarter results that reflect the ongoing strength of our core Insituform business as well as significant profitability improvements from our Corrosion Protection businesses. We remain focused on continuing to drive strong results as we advance efforts toward the close of our previously announced transaction with New Mountain.”
Owing to the proposed merger deal with New Mountain Capital, L.L.C., Aegion will not host a conference call to discuss earnings results or provide a financial outlook. The transaction is expected to close on May 17, subject to Aegion’s stockholder approval and other customary closing conditions. Post merger, it will become a private company.
Earnings & Revenues Discussion
Aegion reported adjusted earnings per share of 8 cents, missing the consensus mark of 13 cents by 38.5% but increased eight times from the year-ago figure.
Aegion Corporation Price, Consensus and EPS Surprise
Aegion Corporation price-consensus-eps-surprise-chart | Aegion Corporation Quote
Total revenues of $181 million missed the consensus mark of $196 million by 7.7%. The reported figure was down 7.7% year over year due to the negative impact of exited or restructured businesses. Its core Insituform North America unit’s revenues remained on par with the prior-year level despite weather challenges.
Quarter-end backlog was $662 million, which increased 3% from the prior year.
Operating Highlights
Adjusted gross margin of 23.6% expanded 290 basis points (bps) from the year-ago period. Adjusted operating margin of 3.3% was up 180 bps year over year. The upside was driven by significant profitability improvements in the Corrosion Protection segment, primarily from the Corrpro North America business.
Financial Update
Aegion’s cash and cash equivalents as of Mar 31, 2021 were $93.3 million, up from $94.8 million at 2020-end. Long-term debt, less current maturities, totaled $186.6 million compared with $194 million at 2020-end. Net cash provided by operations was $1.2 million in the first three months of 2021 versus $8.1 million cash used in operations in the comparable year-ago period.
Zacks Rank
Aegion — which share space with Armstrong World Industries, Inc. (AWI - Free Report) , Owens Corning (OC - Free Report) and United Rentals, Inc. (URI - Free Report) in the Zacks Building Products - Miscellaneous industry — currently carries a Zacks Rank #3 (Hold). You can the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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