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In the last reported quarter, its earnings surpassed the Zacks Consensus Estimate by 33.2% and rose 67.1% from a year ago. Revenues also increased 13.5% year over year and topped the consensus mark by 1.9%.
This specialty contracting services provider surpassed earnings estimates in each of the trailing four quarters with an average of 25%.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for EME’s fourth-quarter earnings has remained stable at $3.51 in the past 60 days. The estimated figure indicates a 33.5% increase on a year-over-year basis.
The consensus estimate for revenues is pegged at $3.26 billion, indicating a 10.5% year-over-year rise.
Factors to Note
EMCOR’s revenues and earnings are expected to have increased in the fourth quarter of 2023.
Despite persistent inflationary and uncertain economic conditions, the company has been benefiting from resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and across the EV value chain, sparked the growth momentum. It is also improving on strength in the combined U.S. Construction segments and the U.S. Building Services segment, backed by solid end-market demand as well as top-tier execution initiatives. These tailwinds are likely to have aided its fourth-quarter results.
The Zacks Consensus Estimate for the fourth-quarter revenues for the U.S. Electrical Construction and Facilities Services segment is pegged at $737 million, indicating an increase from $715 million reported in the prior quarter.
The Zacks Consensus Estimate for the U.S. Mechanical Construction and Facilities Services segment is currently pegged at $1.276 billion versus $1.161 billion reported a year ago.
For the U.S. Building Services unit, revenues are currently pegged at $814 million, up from $731 million reported a year ago.
For the U.S. Industrial Services business, revenues are expected to grow to $312 million from $297 million reported in the prior year.
The consensus mark for the U.K. Building Services segment’s revenues is pegged at $119 million, indicating an increase from $113 million reported in the prior period.
However, volatility in oil prices remains a primary concern for EMCOR. The oil and gas industry looked grim in the past few months, which might have hurt EMCOR’s bottom line to some extent in the to-be-reported quarter.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for EMCOR 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. This is not the case here, as you will see below.
EMCOR currently has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Quanta Services Inc. (PWR - Free Report) reported better-than-expected results for fourth-quarter 2023, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
The company continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Project activity associated with renewable generation has been going strong and is expected to continue throughout the year.
Martin Marietta Materials, Inc. (MLM - Free Report) reported mixed fourth-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Revenues missed the consensus mark but rose year over year.
Going forward, MLM anticipates strong demand for infrastructure, large-scale energy and domestic manufacturing projects. This will largely offset weaker residential demand and the anticipated softening in light non-residential activity. With mortgage rates stabilizing and affordability headwinds receding, MLM fully expects single-family residential construction to recover as demand still exceeds supply, particularly in its key markets.
Louisiana-Pacific Corporation (LPX - Free Report) , or LP, reported impressive fourth-quarter 2023 results. Earnings and net sales beat their respective Zacks Consensus Estimate.
On a year-over-year basis, LPX’s earnings increased on reduced costs and inflationary pressure despite lower net sales.
Image: Bigstock
EMCOR (EME) Gears Up to Report Q4 Earnings: What's in Store?
EMCOR Group, Inc. (EME - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 28, before the opening bell.
In the last reported quarter, its earnings surpassed the Zacks Consensus Estimate by 33.2% and rose 67.1% from a year ago. Revenues also increased 13.5% year over year and topped the consensus mark by 1.9%.
This specialty contracting services provider surpassed earnings estimates in each of the trailing four quarters with an average of 25%.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for EME’s fourth-quarter earnings has remained stable at $3.51 in the past 60 days. The estimated figure indicates a 33.5% increase on a year-over-year basis.
EMCOR Group, Inc. Price and EPS Surprise
EMCOR Group, Inc. price-eps-surprise | EMCOR Group, Inc. Quote
The consensus estimate for revenues is pegged at $3.26 billion, indicating a 10.5% year-over-year rise.
Factors to Note
EMCOR’s revenues and earnings are expected to have increased in the fourth quarter of 2023.
Despite persistent inflationary and uncertain economic conditions, the company has been benefiting from resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and across the EV value chain, sparked the growth momentum. It is also improving on strength in the combined U.S. Construction segments and the U.S. Building Services segment, backed by solid end-market demand as well as top-tier execution initiatives. These tailwinds are likely to have aided its fourth-quarter results.
The Zacks Consensus Estimate for the fourth-quarter revenues for the U.S. Electrical Construction and Facilities Services segment is pegged at $737 million, indicating an increase from $715 million reported in the prior quarter.
The Zacks Consensus Estimate for the U.S. Mechanical Construction and Facilities Services segment is currently pegged at $1.276 billion versus $1.161 billion reported a year ago.
For the U.S. Building Services unit, revenues are currently pegged at $814 million, up from $731 million reported a year ago.
For the U.S. Industrial Services business, revenues are expected to grow to $312 million from $297 million reported in the prior year.
The consensus mark for the U.K. Building Services segment’s revenues is pegged at $119 million, indicating an increase from $113 million reported in the prior period.
However, volatility in oil prices remains a primary concern for EMCOR. The oil and gas industry looked grim in the past few months, which might have hurt EMCOR’s bottom line to some extent in the to-be-reported quarter.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for EMCOR 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. This is not the case here, as you will see below.
EMCOR currently has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
EME currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Construction Releases
Quanta Services Inc. (PWR - Free Report) reported better-than-expected results for fourth-quarter 2023, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
The company continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Project activity associated with renewable generation has been going strong and is expected to continue throughout the year.
Martin Marietta Materials, Inc. (MLM - Free Report) reported mixed fourth-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Revenues missed the consensus mark but rose year over year.
Going forward, MLM anticipates strong demand for infrastructure, large-scale energy and domestic manufacturing projects. This will largely offset weaker residential demand and the anticipated softening in light non-residential activity. With mortgage rates stabilizing and affordability headwinds receding, MLM fully expects single-family residential construction to recover as demand still exceeds supply, particularly in its key markets.
Louisiana-Pacific Corporation (LPX - Free Report) , or LP, reported impressive fourth-quarter 2023 results. Earnings and net sales beat their respective Zacks Consensus Estimate.
On a year-over-year basis, LPX’s earnings increased on reduced costs and inflationary pressure despite lower net sales.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.