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 Q3. Today, we are looking at construction and maintenance services stocks, starting with Limbach (NASDAQ:LMB).
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 12 construction and maintenance services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 7% on average since the latest earnings results.
Limbach (NASDAQ:LMB)
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Limbach reported revenues of $184.6 million, up 37.8% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with full-year EBITDA guidance slightly topping analysts’ expectations but a miss of analysts’ EBITDA estimates.
“We are pleased to report a solid third quarter, underscoring the success of our strategic transition to higher margin ODR business,” said Michael McCann, President and Chief Executive Officer of Limbach.
Limbach scored the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 8.4% since reporting and currently trades at $78.59.
Is now the time to buy Limbach? Access our full analysis of the earnings results here, it’s free.
Best Q3: Primoris (NYSE:PRIM)
Listed on the NASDAQ in 2008, Primoris (NYSE:PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.
Primoris reported revenues of $2.18 billion, up 32.1% year on year, outperforming analysts’ expectations by 17.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Primoris pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.4% since reporting. It currently trades at $131.25.
Is now the time to buy Primoris? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $566.8 million, down 5.8% year on year, falling short of analysts’ expectations by 2.3%. It was a softer quarter as it posted a miss of analysts’ Delivery and Installation revenue estimates and revenue guidance for next quarter missing analysts’ expectations significantly.
WillScot Mobile Mini delivered the slowest revenue growth in the group. Interestingly, the stock is up 11.9% since the results and currently trades at $21.88.
Read our full analysis of WillScot Mobile Mini’s results here.
Matrix Service (NASDAQ:MTRX)
Founded in Oklahoma, Matrix Service (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.
Matrix Service reported revenues of $211.9 million, up 28% year on year. This number topped analysts’ expectations by 2.5%. Zooming out, it was a slower quarter as it produced a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.
Matrix Service had the weakest full-year guidance update among its peers. The stock is down 20.6% since reporting and currently trades at $12.39.
Read our full, actionable report on Matrix Service 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 $1.43 billion, up 12.4% year on year. This print missed analysts’ expectations by 4.5%. Zooming out, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ revenue estimates.
Granite Construction had the weakest performance against analyst estimates among its peers. The stock is up 17.7% since reporting and currently trades at $120.91.
Read our full, actionable report on Granite Construction here, it’s free.
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