What Happened?
Shares of marine infrastructure company Orion (NYSE:ORN) jumped 19.5% in the afternoon session after the company reported third quarter results that blew past analysts' EPS expectations. Its EBITDA also outperformed Wall Street's estimates. The performance reflected anticipations of improved momentum in the back half of the year, following key projects, including the Pearl Harbor and Grand Bahama Shipyard Dry Dock. Adding to the positive, the company continued to observe strong demand for its specialty marine and concrete services in both the government and private sector. On the other hand, its revenue missed. Overall, we think this was a strong quarter.
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What The Market Is Telling Us
Orion’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. But moves this big are rare even for Orion and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 27.7% on the news that the company reported second-quarter earnings results: Unfortunately, its revenue, adjusted EBITDA, and EPS all fell short of Wall Street's estimates as the company suffered logistics setbacks due to the slower ramp of two large projects. This setback is expected to lead to a shift in revenue recognition. As a result, management lowered full-year revenue to $850 million to $900 million and adjusted EBITDA to $40 million to $45 million. Overall, this was a challenging quarter.
Orion is up 29.3% since the beginning of the year, but at $6.25 per share, it is still trading 47.4% below its 52-week high of $11.87 from July 2024. Investors who bought $1,000 worth of Orion’s shares 5 years ago would now be looking at an investment worth $1,274.
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