Pike Electric Corp. (PIKE): Zacks Rank Buy

Zacks

Pike Electric Corporation (PIKE) posted impressive fiscal first quarter 2013 results last week with a triple-digit earnings surprise. Also, shares reached a new all-time high of $10.99 on November 12, 2012. With a year-to-date return of about 48%, this Zacks #1 Rank (Strong Buy) provider of electrical industry solutions is showing strong momentum.

Driving Catalysts

On November 5, Pike Electric Corporation announced fiscal first quarter earnings per share of 26 cents, up 271% year over year and jumping 117% above the Zacks Consensus Estimate of 12 cents.

Net sales soared 42% to $244.6 million based on a 30% increase in Construction revenue (about 83% of total revenue) and a 161% increase in revenue from Other Operations.

Earnings Momentum Rising

Over the last 30 days, five of 6 estimates were revised higher for fiscal 2013, boosting the Zacks Consensus Estimate by 53.3% to 69 cents per share. All 5 estimates for fiscal 2014 were also raised in that time, lifting the Zacks Consensus Estimate by 22.4% to 71 cents.

These estimates reflect year-over-year growth of 116.2% for 2013 and 2.1% for 2014.

Valuation & Technicals

Pike Electric is currently trading at a forward P/E multiple of 15.4, a 4.6% discount from its peer group average of 16.2. On a P/S basis, shares trade at 0.5x, versus the peer group average of 1.6x. The company offers a ROE of 6.3%.

The last month was good for the stock as it rose from roughly $8.00 per share to close to $11.00 per share. The outlook for the year ahead seems bright as supported by rising Zacks Consensus Estimates.

Pike Electric Corporation is headquartered in Mount Airy, North Carolina and was incorporated in 1945. The company specializes in providing engineering, construction and maintenance services to its clients including investor-owned utilities, electric co-operatives and independent power providers. The company currently has a market capitalization of approximately $374.3 million.


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