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Winners And Losers Of Q1: APi (NYSE:APG) Vs The Rest Of The Construction and Maintenance Services Stocks


Jabin Bastian /
2024/07/02 3:42 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at APi (NYSE:APG) and the best and worst performers in the construction and maintenance services industry.

Construction and maintenance services companies not only boast technical know-how in specialized areas but also may hold special licenses and permits. Those who work in more regulated areas can enjoy more predictable revenue streams - for example, fire escapes need to be inspected every five years–. More recently, services to address energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and maintenance services companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives incremental demand for these companies’ offerings.

The 7 construction and maintenance services stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 3.2%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and construction and maintenance services stocks have held roughly steady amidst all this, with share prices up 2.7% on average since the previous earnings results.

Weakest Q1: APi (NYSE:APG)

Started in 1926 as an insulation contractor, APi (NYSE:APG) provides life safety solutions and specialty services for buildings and infrastructure.

APi reported revenues of $1.60 billion, down 0.8% year on year, falling short of analysts' expectations by 0.1%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

APi Total Revenue

APi delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is down 3.9% since the results and currently trades at $36.33.

Read our full report on APi here, it's free.

Best Q1: Great Lakes Dredge & Dock (NASDAQ:GLDD)

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Great Lakes Dredge & Dock reported revenues of $198.7 million, up 25.7% year on year, outperforming analysts' expectations by 13.2%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings estimates.

Great Lakes Dredge & Dock Total Revenue

Great Lakes Dredge & Dock achieved the biggest analyst estimates beat among its peers. The stock is up 25.5% since the results and currently trades at $8.85.

Is now the time to buy Great Lakes Dredge & Dock? Access our full analysis of the earnings results here, it's free.

Granite Construction (NYSE:GVA)

Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE:GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.

Granite Construction reported revenues of $672.3 million, up 20% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is up 9.6% since the results and currently trades at $60.24.

Read our full analysis of Granite Construction's results here.

WillScot Mobile Mini (NASDAQ:WSC)

Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease.

WillScot Mobile Mini reported revenues of $587.2 million, up 3.8% year on year, surpassing analysts' expectations by 1.1%. It was a weaker quarter for the company, with underwhelming EBITDA guidance for the full year.

WillScot Mobile Mini had the weakest full-year guidance update among its peers. The stock is up 1.5% since the results and currently trades at $38.19.

Read our full, actionable report on WillScot Mobile Mini here, it's free.

Construction Partners (NASDAQ:ROAD)

Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.

Construction Partners reported revenues of $371.4 million, up 14.3% year on year, in line with analysts' expectations. It was an ok quarter for the company, with an impressive beat of analysts' organic revenue estimates.

Construction Partners scored the highest full-year guidance raise among its peers. The stock is down 0.4% since the results and currently trades at $53.64.

Read our full, actionable report on Construction Partners here, it's free.

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