Archive for the Industry Earnings Category

BIG HVAC Company EMCOR misses on earnings

Posted in Industry Earnings on February 25, 2011 by vetopropac

Emcor Group Inc., the Norwalk-based provider of mechanical and electrical construction and facilities services, reported quarterly earnings that rose slightly, missing Wall Street estimates. The company also provided guidance for the year that disappointed some analysts.

Emcor’s fourth-quarter net income climbed to $40 million, or $0.59 per diluted share, compared with $39.2 million, or $0.58 per diluted share, in the 2009 quarter. Revenue totaled $1.36 billion, level with the prior-year period. The company, whose stock has gone up 2.5 percent this year, was expected to earn 61 cents per share, according to analysts’ estimates compiled by Bloomberg.

The company’s stock fell as much as $2.06 to $28.23 ahead of Thursday morning’s earnings call and then hovered around $30 before closing down 27 cents.

Emcor expects diluted earnings per share for 2011 of $1.45 to $1.85 on about $5.3 billion to $5.5 billion of expected revenue, while Bloomberg’s analysts are forecasting per share earnings to reach $2.10.

“I think that’s more the cause of the softness than anything else,” said David Wells, an analyst with Thompson Research who rates Emcor as “hold.”

Jeffrey Beach, an analyst with Stifel Nicolaus & Co. who has been covering Emcor for 10 years, said he expects Emcor’s fiscal earnings per share to come in lower, at $1.82 on revenues of $5.4 billion, because of the weak economy.

“Analysts have been aggressive on the speed of the recovery,” he said, adding that the stock’s decline on Thursday was probably caused by market instability as a result of political unrest in the Middle East. “My observation is that it’s going to take a couple of years for Emcor to see earnings growth and the market is bottoming just now.”

Emcor, which last year acquired construction firms Harry Pepper & Associates of Jacksonville, Fla., and Bahnson Holdings of Winston-Salem, N.C., sees more acquisition opportunities for 2011 as markets remain largely stable, President and CEO Tony Guzzi said.

Contract backlog as of Dec. 31 was $3.42 billion, compared with $3.15 billion a year ago, including a record $900 million in the healthcare sector.
From Greenwich Time