Electrical construction and infrastructure services provider MYR Group (NASDAQ:MYRG) will be reporting results tomorrow after market close. Here’s what investors should know.
MYR Group missed analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $888 million, down 5.5% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is MYR Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting MYR Group’s revenue to decline 11.5% year on year to $888.5 million, a reversal from the 16.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.68 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MYR Group has missed Wall Street’s revenue estimates three times over the last two years.
Looking at MYR Group’s peers in the construction and maintenance services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Construction Partners delivered year-on-year revenue growth of 41.6%, beating analysts’ expectations by 9.7%, and Comfort Systems reported revenues up 37.6%, topping estimates by 5.5%. Construction Partners traded down 3.6% following the results while Comfort Systems was also down 4.8%.
Read our full analysis of Construction Partners’s results here and Comfort Systems’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump’s triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the construction and maintenance services stocks have shown solid performance, the group has generally underpeformed, with share prices down 7.4% on average over the last month. MYR Group is down 14.1% during the same time and is heading into earnings with an average analyst price target of $181.33 (compared to the current share price of $118.08).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
