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Primoris Services (PRIM) posted quarterly earnings of $ 0.89 per share, beating Zacks’ consensus estimate of $ 0.80 per share. This compared to earnings of $ 0.90 per share a year ago. These figures have been adjusted for one-off effects.
This quarterly report represents an 11.25% earnings surprise. A quarter ago, this construction company was expected to make $ 0.69 per share in earnings when it actually made a profit of $ 0.68, which is a surprise of – Represents 1.45%.
In the past four quarters, the company has beat EPS consensus estimates three times.
Primoris Services, part of the Zacks Building Products – Heavy Construction industry, had revenue of $ 913.25 million for the quarter ended September 2021, missing the Zacks consensus estimate by 9.85%. That compares to revenue of $ 942.7 million last year. The company has only exceeded consensus sales estimates once in the past four quarters.
The sustainability of the stock’s immediate price movement based on recently released numbers and future earnings expectations will depend primarily on management’s comments on the earnings call.
Primoris Services shares are up around 3.1% since the start of the year, while the S&P 500 is up 25.1%.
What’s next with Primoris Services?
Although Primoris Services has lagged the market so far this year, investors are asking themselves: what will happen to the stock?
There are no easy answers to this important question, but one reliable metric that can help investors manage it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter (s), but also how those expectations have changed recently.
Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track such revisions themselves or rely on a proven rating tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this publication of the results, the trend in estimate revisions for Primoris Services was unfavorable. While the extent and direction of valuation revisions could change following the company’s just-released earnings report, its current status means a Zacks rank of # 4 (sell) for the stock. So the stock is expected to lag behind the market in the near future. You can see the full list of Zacks’ current # 1 ranked (Strong Buy) stocks here.
It will be interesting to see how the estimates for the coming quarters and the current fiscal year change in the coming days. The current consensus EPS estimate is $ 0.71 on revenue of $ 943.9 million for the next quarter and $ 2.33 on revenue of $ 3.73 billion for the current quarter Fiscal year.
Investors should be aware that the outlook for the industry can also have a material impact on the performance of the stock. In terms of Zacks industry rank, Construction Products – Heavy Construction is currently in the bottom 27% of the more than 250 Zacks industries. Our research shows that the top 50% of Zacks ranking industries outperform the bottom 50% by a factor of more than 2 to 1.
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