Latest news with #EMCOR
Yahoo
02-06-2025
- Business
- Yahoo
Q1 Earnings Highlights: EMCOR (NYSE:EME) Vs The Rest Of The Engineering and Design Services Stocks
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at engineering and design services stocks, starting with EMCOR (NYSE:EME). Companies providing engineering and design services boast ever-evolving technical expertise. Compared to their counterparts who manufacture and sell physical products, these companies can also pivot faster to more trending areas due to their smaller physical asset bases. Green energy and water conservation, for example, are current themes driving incremental demand in this space. On the other hand, those providing engineering and design services are at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. The 5 engineering and design services stocks we track reported a very strong Q1. As a group, revenues beat analysts' consensus estimates by 1.7% while next quarter's revenue guidance was in line. Luckily, engineering and design services stocks have performed well with share prices up 14.1% on average since the latest earnings results. Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services EMCOR reported revenues of $3.87 billion, up 12.7% year on year. This print exceeded analysts' expectations by 2.2%. Overall, it was a very strong quarter for the company with a solid beat of analysts' EBITDA estimates. Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR, commented, 'Our first quarter results—which include 12.7% year-over-year revenue growth, a 22.6% increase in operating income, and $11.75 billion in remaining performance obligations—demonstrate the continued strength of our business. Once again, results were driven by our U.S. Electrical Construction and U.S. Mechanical Construction segments, which had year-over-year revenue growth of 42.3% and 10.2%, respectively, and operating margins of 12.5% and 11.9%, respectively. Our performance reflects our customers' confidence in our ability to execute complex projects across diverse end markets, as well as our proactive expansion into new geographies, and our productivity resulting from the use of virtual design and construction technologies and prefabrication capabilities. Coupled with sustained excellence in labor planning, large project coordination, and the sharing of best practices, we delivered exceptional results for our customers.' EMCOR scored the fastest revenue growth but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 13.8% since reporting and currently trades at $471.86. Read why we think that EMCOR is one of the best engineering and design services stocks, our full report is free. Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ:STRL) provides civil infrastructure construction. Sterling reported revenues of $430.9 million, down 2.1% year on year, outperforming analysts' expectations by 5.4%. The business had a stunning quarter with full-year EBITDA guidance exceeding analysts' expectations. Sterling pulled off the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 13.1% since reporting. It currently trades at $188.01. Is now the time to buy Sterling? Access our full analysis of the earnings results here, it's free. Founded in 1990 when a group of engineers from five companies decided to merge, AECOM (NYSE:ACM) provides various infrastructure consulting services. AECOM reported revenues of $3.77 billion, down 4.4% year on year, falling short of analysts' expectations by 9.5%. It was a mixed quarter as it posted a decent beat of analysts' adjusted operating income estimates. AECOM delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 7.8% since the results and currently trades at $110.15. Read our full analysis of AECOM's results here. Involved in the 1996 Olympic Games MasTec (NYSE:MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries. MasTec reported revenues of $2.85 billion, up 6% year on year. This result beat analysts' expectations by 4.9%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts' backlog estimates and a solid beat of analysts' EPS estimates. The stock is up 16.9% since reporting and currently trades at $156.51. Read our full, actionable report on MasTec here, it's free. Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure. Dycom reported revenues of $1.26 billion, up 10.2% year on year. This print surpassed analysts' expectations by 5.7%. It was an exceptional quarter as it also produced an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Dycom scored the biggest analyst estimates beat among its peers. The stock is up 18.9% since reporting and currently trades at $229.92. Read our full, actionable report on Dycom here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
23-05-2025
- Business
- Yahoo
2 Mooning Stocks to Target This Week and 1 to Approach with Caution
Great things are happening to the stocks in this article. They're all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase. But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here are two stocks with the fundamentals to back up their performance and one not so much. One-Month Return: +45% Originally a subsidiary of Pioneer-Standard Electronics that distributed electronic components, Agilysys (NASDAQ:AGYS) offers a software-as-service platform that helps hotels, resorts, restaurants, and other hospitality businesses manage their operations and workflows. Why Are We Wary of AGYS? Revenue increased by 19.2% annually over the last three years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds Gross margin of 62.4% is below its competitors, leaving less money to invest in areas like marketing and R&D Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 1.1 percentage points over the next year Agilysys's stock price of $102 implies a valuation ratio of 9.4x forward price-to-sales. Read our free research report to see why you should think twice about including AGYS in your portfolio, it's free. One-Month Return: +22.4% Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs. Why Is META a Good Business? 13.3% annual increases in its average revenue per user over the last two years show its platform is resonating with power users Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 59.9%, and its operating leverage amplified its profits over the last few years Robust free cash flow margin of 31.5% gives it many options for capital deployment At $636.57 per share, Meta trades at 14.4x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. One-Month Return: +19.3% Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services Why Are We Backing EME? Annual revenue growth of 14.8% over the last two years was superb and indicates its market share increased during this cycle Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue Improving returns on capital reflect management's ability to monetize investments EMCOR is trading at $458.32 per share, or 19.6x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
What To Expect From Dycom's (DY) Q1 Earnings
Telecommunications company Dycom (NYSE:DY) will be reporting results tomorrow before market hours. Here's what investors should know. Dycom beat analysts' revenue expectations by 5.7% last quarter, reporting revenues of $1.08 billion, up 13.9% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Is Dycom a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Dycom's revenue to grow 4.2% year on year to $1.19 billion, slowing from the 9.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.62 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dycom has missed Wall Street's revenue estimates three times over the last two years. Looking at Dycom's peers in the engineering and design services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sterling's revenues decreased 2.1% year on year, beating analysts' expectations by 5.4%, and EMCOR reported revenues up 12.7%, topping estimates by 2.2%. Sterling traded up 3.6% following the results while EMCOR's stock price was unchanged. Read our full analysis of Sterling's results here and EMCOR's results here. There has been positive sentiment among investors in the engineering and design services segment, with share prices up 20.4% on average over the last month. Dycom is up 26.2% during the same time and is heading into earnings with an average analyst price target of $211.33 (compared to the current share price of $191.35). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
What Makes EMCOR Group (EME) a Good Investment?
TimesSquare Capital Management, an equity investment management company, released its 'U.S. Focus Growth Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The broad-based downturn in US equities underperformed overseas markets in the first quarter. In this negative environment, the strategy outperformed the index in the first quarter. The strategy returned 2.42% (gross) and 2.20% (net) compared to a -7.12% return for the Russell Midcap Growth Index. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks such as EMCOR Group, Inc. (NYSE:EME). Headquartered in Norwalk, Connecticut, EMCOR Group, Inc. (NYSE:EME) offers construction and facilities, building, and industrial services. The one-month return of EMCOR Group, Inc. (NYSE:EME) was 29.70%, and its shares gained 22.56% of their value over the last 52 weeks. On May 16, 2025, EMCOR Group, Inc. (NYSE:EME) stock closed at $470.43 per share with a market capitalization of $21.06 billion. TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding EMCOR Group, Inc. (NYSE:EME) in its Q1 2025 investor letter: "At the start of the year, we initiated a position in EMCOR Group, Inc. (NYSE:EME), which provides construction and operational services for mechanical and electrical systems to a broad range of commercial, industrial, utility, and institutional customers. Its underlying business trends remained strong, though there were some market concerns that EMCOR's activities tied to data center construction would slow. As EMCOR's price retreated, we continued building the position given the strong demand the company saw." A construction worker using a mechanical tool for maintenance on a large industrial machine. EMCOR Group, Inc. (NYSE:EME) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held EMCOR Group, Inc. (NYSE:EME) at the end of the fourth quarter, compared to 40 in the third quarter. In the first quarter of 2025, EMCOR Group, Inc. (NYSE:EME) reported revenue of $3.87 billion, reflecting year-over-year growth of 12.7%. While we acknowledge the potential of EMCOR Group, Inc. (NYSE:EME) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered EMCOR Group, Inc. (NYSE:EME) and shared the list of small-cap construction and materials stocks hedge funds are buying. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
14-05-2025
- Business
- Yahoo
EME Q1 Earnings Call: Data Center and Healthcare Expansion Drive Outperformance, Tariff Risks Managed
Specialty construction contractor company EMCOR (NYSE:EME) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 12.7% year on year to $3.87 billion. The company's full-year revenue guidance of $16.5 billion at the midpoint came in 0.8% above analysts' estimates. Its non-GAAP profit of $5.26 per share was 13.7% above analysts' consensus estimates. Is now the time to buy EME? Find out in our full research report (it's free). Revenue: $3.87 billion vs analyst estimates of $3.78 billion (12.7% year-on-year growth, 2.2% beat) Adjusted EPS: $5.26 vs analyst estimates of $4.63 (13.7% beat) Adjusted EBITDA: $360.7 million vs analyst estimates of $328.5 million (9.3% margin, 9.8% beat) The company reconfirmed its revenue guidance for the full year of $16.5 billion at the midpoint Adjusted EPS guidance for the full year is $23.33 at the midpoint, beating analyst estimates by 0.6% Operating Margin: 8.2%, in line with the same quarter last year Free Cash Flow Margin: 2.1%, down from 3.3% in the same quarter last year Market Capitalization: $21.14 billion EMCOR's first quarter results were shaped by strong performance from its Electrical and Mechanical Construction segments, supported by the integration of Miller Electric and continued demand from data center, healthcare, and water infrastructure projects. CEO Tony Guzzi pointed to the company's proactive move into new geographies and the ability to execute complex projects, stating, 'We continue to have excellent execution in our Electrical and Mechanical Construction segments with 12.5% and 11.9% operating margins, respectively.' Looking ahead, EMCOR's guidance reflects expectations for sustained operating margins, with the leadership team highlighting confidence in the company's ability to manage through tariff uncertainty and macroeconomic risks. Guzzi emphasized that the guidance range incorporates potential impacts from tariffs, noting, 'We will manage through the tariff uncertainty similar to how we manage the supply chain and cost disruptions around COVID.' The company anticipates continued growth in its key market sectors and maintains a disciplined approach to cost management and capital allocation. Management attributed the quarter's performance to robust execution in its construction businesses, expanded project scope driven by acquisitions, and ongoing strength in several end-markets. Forward-looking commentary focused on navigating external headwinds while leveraging a record project backlog to support growth. Construction Segment Momentum: The Electrical and Mechanical Construction divisions led results, with significant activity in data centers, healthcare, and water/wastewater sectors. The integration of Miller Electric contributed to both revenue growth and backlog expansion. Project Backlog Expansion: Remaining performance obligations (RPOs) rose to $11.8 billion, a 28% year-over-year increase, fueled by organic growth and the Miller acquisition. Notably, data center-related RPOs grew by 112% year-over-year. Building Services Shift: The U.S. Building Services segment saw mixed results, with mechanical services offsetting declines in site-based services. Management intends to continue prioritizing mechanical services, forecasting a shift in revenue mix to 80% mechanical services by next year. Industrial Services Headwinds: The Industrial Services segment faced challenges from a slower turnaround season due to extreme weather and increased credit loss allowances. Management expects performance to improve as the year progresses. Margin Drivers: Management credited improved margins to enhanced project execution, prefabrication, virtual design and construction (VDC) capabilities, and disciplined labor management. Segment operating margins in construction reached the higher end of historical performance. Looking forward, management expects continued growth in construction demand, supported by a diversified backlog and strategic focus on high-growth sectors, while remaining vigilant regarding external risks such as tariffs and macroeconomic uncertainty. Data Center and Healthcare Expansion: Ongoing demand for complex data center and healthcare projects is expected to sustain revenue growth, with management noting that data center activity remains strong due to increased geographic reach and larger project scopes. Tariff and Cost Management: The company's guidance incorporates potential cost impacts from tariffs, with plans to mitigate risks through contract negotiation and price adjustments. Management believes that normalization of trade barriers may further benefit domestic manufacturing activity. Project Mix and Margin Focus: The ability to maintain or improve operating margins will depend on the mix of project types, effective cost control, and continued execution of large-scale, high-margin projects. Leadership emphasized discipline in overhead and job cost management as critical to delivering on guidance. Brent Thielman (D.A. Davidson): Asked if maintaining guidance range reflected operational risks from tariffs or broader macro uncertainty. CEO Tony Guzzi clarified that the decision was driven by early-year uncertainty and not specific to growth concerns, emphasizing cautious guidance. Adam Thalhimer (Thompson Davis & Company): Queried about the strategic direction for the Building Services segment. Guzzi explained the focus would remain on growing mechanical services, aiming for an 80-20 split with site-based services. Brian Brophy (Stifel): Inquired about the sustainability of data center demand amid industry headlines. Guzzi stated that demand is increasing, with more locations and larger projects, providing good near-term visibility. Alex Dwyer (KeyBanc Capital Markets): Asked about the growth in project backlog (RPOs) compared to revenue guidance. CFO Jason Nalbandian attributed the higher backlog to longer-duration projects and the addition of Miller Electric's portfolio. Adam Bubes (Goldman Sachs): Sought clarification on margin drivers in construction and the impact of project mix. Guzzi noted that improved execution and scale, especially in large and mid-sized projects, are supporting margins at the high end of historical ranges. In the coming quarters, the StockStory team will be monitoring (1) the pace of backlog conversion in data center and healthcare projects, (2) the company's ability to offset cost pressures from tariffs and labor through contract management and pricing, and (3) whether the Building Services and Industrial Services segments demonstrate the expected rebound in performance. Execution against these milestones will provide insight into EMCOR's ability to maintain growth and margin stability. EMCOR currently trades at a forward P/E ratio of 20.2×. Should you double down or take your chips? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
