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.
Factors Likely to Influence MYR Group's (MYRG) Q1 Earnings
Read MoreHide Full Article
MYR Group Inc. (MYRG - Free Report) is scheduled to report first-quarter 2020 results on Apr 29, after the closing bell.
In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 38.2% and 6%, respectively. Earnings and revenues of this electrical construction service provider in the United States and Canada also grew 18.8% and 27.9%, respectively, from the year-ago reported figures, courtesy of strong contribution from both the segments — Transmission and Distribution (T&D) and Commercial & Industrial (C&I).
Markedly, MYR Group reported better-than-expected earnings in three of the last four quarters, with the average surprise being 7.4%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has been unchanged at 53 cents per share over the past 30 days. This indicates a 20.5% increase from the year-ago earnings of 44 cents per share. The consensus mark for revenues is $547.9 million, suggesting a 17.1% year-over-year improvement.
Strong organic growth rates in the company’s underlying markets, acquisitions and operational activities to streamline business operations are expected to have aided MYR Group to generate higher revenues and earnings in the first quarter.
The T&D business, contributing 55% to the company’s sales, has been benefiting from high levels of activity in the small-to-medium project market and increased outsourcing by key utility customers. Investments to strengthen the grid against natural disasters and upgrade the aging infrastructure are likely to reflect on this business segment’s results. Increased focus on renewable energy also bodes well.
The company is likely to have generated higher revenues from the C&I business segment, contributing 45% to sales, owing to strong activities in core Arizona and Colorado markets. Furthermore, incremental revenues from the CSI acquisition added to the positives.
On the flip side, higher incentive compensation and other employee-related expenses to support operational growth are likely to have weighed on its margins.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for MYR Group 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.
Earnings ESP: MYR Group 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.
Here are some companies in the Zacks Utilities sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
WEC Energy Group, Inc. (WEC - Free Report) has an Earnings ESP of +0.25% and carries a Zacks Rank #2.
Southwest Gas Holdings, Inc. (SWX - Free Report) has an Earnings ESP of +1.64% and holds a Zacks Rank #2.
Consolidated Edison, Inc. (ED - Free Report) has an Earnings ESP of +0.69% and holds a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Factors Likely to Influence MYR Group's (MYRG) Q1 Earnings
MYR Group Inc. (MYRG - Free Report) is scheduled to report first-quarter 2020 results on Apr 29, after the closing bell.
In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 38.2% and 6%, respectively. Earnings and revenues of this electrical construction service provider in the United States and Canada also grew 18.8% and 27.9%, respectively, from the year-ago reported figures, courtesy of strong contribution from both the segments — Transmission and Distribution (T&D) and Commercial & Industrial (C&I).
Markedly, MYR Group reported better-than-expected earnings in three of the last four quarters, with the average surprise being 7.4%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has been unchanged at 53 cents per share over the past 30 days. This indicates a 20.5% increase from the year-ago earnings of 44 cents per share. The consensus mark for revenues is $547.9 million, suggesting a 17.1% year-over-year improvement.
MYR Group, Inc. Price and EPS Surprise
MYR Group, Inc. price-eps-surprise | MYR Group, Inc. Quote
Factors to Note
Strong organic growth rates in the company’s underlying markets, acquisitions and operational activities to streamline business operations are expected to have aided MYR Group to generate higher revenues and earnings in the first quarter.
The T&D business, contributing 55% to the company’s sales, has been benefiting from high levels of activity in the small-to-medium project market and increased outsourcing by key utility customers. Investments to strengthen the grid against natural disasters and upgrade the aging infrastructure are likely to reflect on this business segment’s results. Increased focus on renewable energy also bodes well.
The company is likely to have generated higher revenues from the C&I business segment, contributing 45% to sales, owing to strong activities in core Arizona and Colorado markets. Furthermore, incremental revenues from the CSI acquisition added to the positives.
On the flip side, higher incentive compensation and other employee-related expenses to support operational growth are likely to have weighed on its margins.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for MYR Group 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.
Earnings ESP: MYR Group 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.
Zacks Rank: It currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some companies in the Zacks Utilities sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
WEC Energy Group, Inc. (WEC - Free Report) has an Earnings ESP of +0.25% and carries a Zacks Rank #2.
Southwest Gas Holdings, Inc. (SWX - Free Report) has an Earnings ESP of +1.64% and holds a Zacks Rank #2.
Consolidated Edison, Inc. (ED - Free Report) has an Earnings ESP of +0.69% and holds a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>