Latest news with #LMB
Yahoo
4 days ago
- Business
- Yahoo
Limbach (LMB) Is a Great Choice for 'Trend' Investors, Here's Why
When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going. Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. (LMB) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. LMB is quite a good fit in this regard, gaining 83% over this period. However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 11.8% over the past four weeks ensures that the trend is still in place for the stock of this company. Moreover, LMB is currently trading at 96.7% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout. Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance. So, the price trend in LMB may not reverse anytime soon. In addition to LMB, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria. This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies. Click here to sign up for a free trial to the Research Wizard today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
09-05-2025
- Business
- Yahoo
LMB Q1 Earnings Call: Owner Direct Strategy Drives Outperformance and Margin Expansion
Building systems company Limbach (NASDAQ:LMB) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 11.9% year on year to $133.1 million. The company's full-year revenue guidance of $620 million at the midpoint came in 1.4% above analysts' estimates. Its non-GAAP profit of $1.12 per share was significantly above analysts' consensus estimates. Is now the time to buy LMB? Find out in our full research report (it's free). Revenue: $133.1 million vs analyst estimates of $121.1 million (11.9% year-on-year growth, 10% beat) Adjusted EPS: $1.12 vs analyst estimates of $0.43 (significant beat) Adjusted EBITDA: $14.87 million vs analyst estimates of $10.34 million (11.2% margin, 43.8% beat) The company reconfirmed its revenue guidance for the full year of $620 million at the midpoint EBITDA guidance for the full year is $80 million at the midpoint, above analyst estimates of $78.6 million Operating Margin: 6.3%, in line with the same quarter last year Free Cash Flow was $11,000, up from -$6.49 million in the same quarter last year Market Capitalization: $1.39 billion Limbach's first quarter results were shaped by the continued shift toward its owner direct relationships (ODR) model, which now accounts for nearly 68% of total revenue. Management attributed improved profitability to this mix shift, emphasizing that investments in sales personnel and selective project bidding have yielded higher gross margins, particularly in the ODR segment. CEO Michael McCann highlighted that 'our unique ODR model is designed to withstand macroeconomic cycles and headwinds,' with healthcare remaining a key source of stable demand. Looking ahead, management's full-year guidance reflects confidence in further ODR expansion, geographic growth, and sustained margin performance. McCann noted the company's intent to 'transition strategic customer relationships from a reactive to a proactive approach,' aiming to influence customer budgets and increase predictability. CFO Jayme Brooks described ongoing investment in sales and account management as critical to this strategy and pointed to a healthy M&A pipeline as a driver of both organic and inorganic growth. Limbach's management focused on the ODR segment's rapid growth and operational levers that supported the quarter's financial outperformance versus Wall Street expectations. They also discussed evolving customer dynamics, discipline in project selection, and the company's approach to acquisitions in a consolidating industry. ODR Model Expansion: The owner direct relationship (ODR) model has accelerated, now comprising 67.9% of total revenue. Management stated that ODR revenue grew 21.7% year-over-year, attributing this to deeper customer partnerships and increased recurring work. Salesforce Investment: Approximately 40 new professionals were added to the sales organization, representing about a third of the team. These hires, including account executives focused on capital expenditure projects, are expected to drive future ODR penetration. Healthcare Market Focus: The healthcare vertical remains a strategic priority due to its stability and ongoing deferred maintenance needs. Management described a 'slow ramp up' as hospitals address backlogs of infrastructure upgrades. Project Selectivity and Margins: The company intentionally reduced GCR (general contractor relationships) revenue, focusing on higher-quality, higher-margin projects. This shift contributed to a gross margin increase in the GCR segment despite lower overall revenue. Acquisition Strategy: Management reiterated a disciplined approach to M&A, preferring targets aligned with the ODR model in attractive metropolitan areas. They cited a differentiated reputation in the market, with a pipeline focused on expanding geographic reach and integrating acquired businesses onto Limbach's strategic platform. Management's outlook for the year centers on deepening ODR relationships, expanding into new geographic markets, and leveraging both organic and acquisition-led growth to drive revenue and margin improvement. ODR Penetration and Data Utilization: The company is prioritizing proactive engagement with top customers, collecting and analyzing facility data to identify and co-author new project opportunities, which management believes will improve sales predictability. Geographic Expansion: Targeted M&A and organic initiatives are aimed at entering up to 20-30 additional metropolitan statistical areas, especially where existing national customers have a presence. This is expected to accelerate market share gains. Industry Consolidation Risks: Management acknowledged increased competition from private equity-backed consolidators in the mechanical services sector but believes Limbach's owner direct focus and selective acquisition strategy mitigate margin pressures and integration risks. Rob Brown (Lake Street Capital): Asked about the healthcare market rebound and tariff-related project pull-forwards. Management described stability in healthcare and noted customer urgency in decision-making due to tariff uncertainty, helping maintain project flow. Chris Moore (CJS Securities): Inquired about the process and criteria for placing account managers with ODR clients. Management explained that account managers are added after demonstrating sufficient revenue traction and partnership potential. Gerry Sweeney (ROTH Capital Partners): Questioned the salesforce ramp and account executive roles. Management clarified that most new hires are onsite account managers, with a smaller group focused on capital projects, all requiring a ramp-up period. Brian Brophy (Stifel): Probed the significance of March's acceleration and whether it was above seasonal norms. Management attributed the uptick to both seasonal factors and the impact of new sales personnel, with expectations for ongoing ramp throughout the year. Brian Brophy (Stifel): Sought clarity on M&A cadence given private equity competition. Management maintained its preference for 2-3 acquisitions per year, emphasizing patience, fit, and strategic alignment over deal volume. In the coming quarters, our analysts will watch (1) the pace and impact of further ODR penetration as Limbach aims for 70-80% of revenue from this segment, (2) integration progress and contribution from recent and future acquisitions in targeted metropolitan areas, and (3) the ability to convert data-driven customer assessments into recurring projects, especially within healthcare and other critical facility verticals. Execution in these areas will be critical to sustaining margin expansion and revenue growth. Limbach currently trades at a forward P/E ratio of 29×. Is the company at an inflection point that warrants a buy or sell? 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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
05-05-2025
- Business
- Yahoo
Limbach (NASDAQ:LMB) Delivers Impressive Q1, Stock Soars
Building systems company Limbach (NASDAQ:LMB) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 11.9% year on year to $133.1 million. The company's full-year revenue guidance of $620 million at the midpoint came in 1.4% above analysts' estimates. Its non-GAAP profit of $1.12 per share was significantly above analysts' consensus estimates. Is now the time to buy Limbach? Find out in our full research report. Revenue: $133.1 million vs analyst estimates of $121.1 million (11.9% year-on-year growth, 10% beat) Adjusted EPS: $1.12 vs analyst estimates of $0.43 (significant beat) Adjusted EBITDA: $14.87 million vs analyst estimates of $10.34 million (11.2% margin, 43.8% beat) The company reconfirmed its revenue guidance for the full year of $620 million at the midpoint EBITDA guidance for the full year is $80 million at the midpoint, above analyst estimates of $78.6 million Operating Margin: 5.9%, in line with the same quarter last year Free Cash Flow was $11,000, up from -$6.49 million in the same quarter last year Market Capitalization: $1.2 billion 'In the first quarter, we grew revenue, gross profit, and Adjusted EBITDA, demonstrating the scalability of our business model,' Michael McCann, President and Chief Executive Officer of Limbach, said. Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services. Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Limbach struggled to consistently increase demand as its $532.9 million of sales for the trailing 12 months was close to its revenue five years ago. This wasn't a great result, but there are still things to like about Limbach. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Limbach's annualized revenue growth of 2.9% over the last two years is above its five-year trend, but we were still disappointed by the results. This quarter, Limbach reported year-on-year revenue growth of 11.9%, and its $133.1 million of revenue exceeded Wall Street's estimates by 10%. Looking ahead, sell-side analysts expect revenue to grow 16% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and implies its newer products and services will catalyze better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Limbach was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.9% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. On the plus side, Limbach's operating margin rose by 5.2 percentage points over the last five years. This quarter, Limbach generated an operating profit margin of 5.9%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Limbach's full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it's at an inflection point. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. Limbach's EPS grew at an astounding 53.3% compounded annual growth rate over the last two years, higher than its 2.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of Limbach's earnings can give us a better understanding of its performance. While we mentioned earlier that Limbach's operating margin was flat this quarter, a two-year view shows its margin has expanded by 2 percentage points. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q1, Limbach reported EPS at $1.12, up from $0.69 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Limbach's full-year EPS of $3.74 to grow 10.6%. We were impressed by how significantly Limbach blew past analysts' revenue, EPS, and EBITDA expectations this quarter. We were also excited its full-year EBITDA guidance outperformed Wall Street's estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 5.9% to $109.20 immediately following the results. Indeed, Limbach had a rock-solid quarterly earnings result, but is this stock a good investment here? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
San Francisco Chronicle
05-05-2025
- Business
- San Francisco Chronicle
Limbach: Q1 Earnings Snapshot
WARRENDALE, Pa. (AP) — WARRENDALE, Pa. (AP) — Limbach Holdings, Inc. (LMB) on Monday reported earnings of $10.2 million in its first quarter. The Warrendale, Pennsylvania-based company said it had profit of 85 cents per share. Earnings, adjusted for one-time gains and costs, were $1.12 per share. The company posted revenue of $133.1 million in the period. Limbach expects full-year revenue in the range of $610 million to $630 million. _____
Yahoo
02-05-2025
- Business
- Yahoo
1 Volatile Stock with Exciting Potential and 2 to Ignore
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy. At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here is one volatile stock that could reward patient investors and two best left to the gamblers. Rolling One-Year Beta: 2.80 Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ:LIND) offers cruising experiences to remote destinations in partnership with National Geographic. Why Do We Steer Clear of LIND? Lackluster 13.4% annual revenue growth over the last five years indicates the company is losing ground to competitors Incremental sales over the last five years were much less profitable as its earnings per share fell by 73% annually while its revenue grew Projected 3.8 percentage point decline in its free cash flow margin next year reflects the company's plans to increase its investments to defend its market position Lindblad Expeditions is trading at $8.96 per share, or 4.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why LIND doesn't pass our bar. Rolling One-Year Beta: 2.33 Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services. Why Are We Wary of LMB? Customers postponed purchases of its products and services this cycle as its revenue declined by 1.3% annually over the last five years High input costs result in an inferior gross margin of 20.3% that must be offset through higher volumes Poor expense management has led to an operating margin of 4.6% that is below the industry average At $99 per share, Limbach trades at 31.9x forward P/E. Dive into our free research report to see why there are better opportunities than LMB. Rolling One-Year Beta: 2.93 Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets. Why Will NVDA Beat the Market? Market share has increased this cycle as its 120% annual revenue growth over the last two years was exceptional Additional sales over the last five years increased its profitability as the 83.3% annual growth in its earnings per share outpaced its revenue Strong free cash flow margin of 45.9% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety Nvidia's stock price of $111.10 implies a valuation ratio of 25.5x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Broadcom (+634% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
