What's in Store for Primoris Services' (PRIM) Q1 Earnings?
Primoris Services Corporation PRIM is slated to report first-quarter 2021 results on May 5, after the closing bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 50% but revenues missed the same by 0.6%. Also, earnings and revenues grew 25% and 14% from the respective year-ago reported figures.
Its earnings topped the consensus mark in three of the last four quarters and missed on the other occasion, with the average surprise being 19.7%.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for Primoris Services’ first-quarter loss is pegged at 9 cents per share. It recorded break-even earnings a year ago. The consensus estimate for revenues is $793 million, indicating 6.7% year-over-year growth.
Primoris Services Corporation Price and EPS Surprise
Primoris Services Corporation price-eps-surprise | Primoris Services Corporation Quote
Factors to Note
The company’s revenues are expected to have increased in the first quarter, courtesy of higher contributions from Pipeline, Power and Transmission segments. Also, its restricting efforts, enhanced performance and better management reorganization with lower costs are likely to benefit the upcoming results. However, weather-related issues are expected to weigh on the results.
Segment wise, pipeline projects in Texas are expected to have supported growth of the Pipeline and Underground segment (accounting for 25.7% of total revenues). However, cancellation of a pipeline project in the Mid-Atlantic and substantial completion of a pipeline project in 2019 served as headwinds. For the Power, Industrial and Engineering segment (22.8% of total revenues), solid momentum in the renewable solar market is anticipated to have reflected on its top-line performance. Solar energy projects and progress on an industrial project for a customer in California are likely to have driven growth.
For the Transmission & Distribution segment (13.1% of total revenues), benefits from restructuring initiatives such as improved performance, better contract pricing, management reorganization as well as reduction of indirect costs have been benefiting the company.
For the Civil segment (12.4% of total revenues), lower textile work volumes, the completion of a project with a major refining customer and an ethylene project in 2019 are expected to reflect on the segment’s results.
In the Utilities & Distribution segment (26% of total revenues), lower activity with California utility customers has been impacting its performance.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Primoris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -22.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Primoris Services currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some companies in the Zacks Construction sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Martin Marietta Materials, Inc. MLM has an Earnings ESP of +8.47% and a Zacks Rank #3.
Summit Materials, Inc. SUM has an Earnings ESP of +9.43% and a Zacks Rank #3.
Eagle Materials Inc. EXP has an Earnings ESP of +8.50% and a Zacks Rank #3.
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