Yahoo Finance A Look Back at Construction and Engineering Stocks' Q1 Earnings: Ameresco (NYSE:AMRC) Vs The Rest Of The Pack
Looking back on construction and engineering stocks' Q1 earnings, we examine this quarter's best and worst performers, including Ameresco (NYSE:AMRC) and its peers.
Construction and engineering companies not only boast technical know-how in specialized areas but also may hold special licenses and permits. Those who work in more regulated areas can enjoy more predictable revenue streams - for example, sprinkler systems need to be maintained every three years. More recently, services addressing energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and engineering companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives topline performance for these companies.
The 16 construction and engineering stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 1.3%. while next quarter's revenue guidance was 1.9% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but construction and engineering stocks have performed well, with the share prices up 12.7% on average since the previous earnings results.
Ameresco (NYSE:AMRC)
Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors.
Ameresco reported revenues of $298.4 million, up 10.1% year on year, exceeding analysts' expectations by 13.3%. Overall, it was an exceptional quarter for the company with a decent beat of analysts' earnings estimates.
CEO George Sakellaris commented, “Ameresco’s strong execution during the first quarter demonstrates the early results of the actions we have taken to optimize our organization and platform to capture the significant growth opportunities ahead of us. Our new corporate structure has brought greater uniformity and scalability across our geographies and enabled faster and better project conversion and execution, which helped to drive stronger than expected revenues in the first quarter. We are also seeing the early results from our strategic focus on better win rates and improved margins in our core Federal and MUSH markets.
Ameresco scored the biggest analyst estimates beat of the whole group. The stock is up 43.9% since reporting and currently trades at $32.01.
Is now the time to buy Ameresco? Access our full analysis of the earnings results here, it's free.
Best Q1: Comfort Systems (NYSE:FIX)
Having historically grown through organic means as well as acquisitions of numerous peers and competitors, Comfort Systems USA (NYSE:FIX) provides mechanical and electrical contracting services.
Comfort Systems reported revenues of $1.54 billion, up 30.8% year on year, outperforming analysts' expectations by 4.8%. It was an incredible quarter for the company with an impressive beat of analysts' backlog sales and earnings estimates.
Comfort Systems scored the fastest revenue growth among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 2.9% since reporting. It currently trades at $302.65.
Is now the time to buy Comfort Systems? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Matrix Service (NASDAQ:MTRX)
Founded in Oklahoma, Matrix Service Company (NASDAQ: MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.
Matrix Service reported revenues of $166 million, down 11.2% year on year, falling short of analysts' expectations by 15%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Matrix Service posted the weakest performance against analyst estimates in the group. As expected, the stock is down 14.3% since the results and currently trades at $10.15.
Read our full analysis of Matrix Service's results here.
EMCOR (NYSE:EME)
Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services
EMCOR reported revenues of $3.43 billion, up 18.7% year on year, surpassing analysts' expectations by 6.4%. Revenue aside, it was a stunning quarter for the company with an impressive beat of analysts' earnings estimates and full-year revenue guidance exceeding analysts' expectations.
EMCOR delivered the highest full-year guidance raise among its peers. The stock is up 7.6% since reporting and currently trades at $364.30.
Read our full, actionable report on EMCOR here, it's free.
Construction Partners (NASDAQ:ROAD)
Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.
Construction Partners reported revenues of $371.4 million, up 14.3% year on year, in line with analysts' expectations. More broadly, it was a solid quarter for the company with an impressive beat of analysts' organic revenue estimates and full-year revenue guidance beating analysts' expectations.
The stock is up 10.3% since reporting and currently trades at $59.38.
Read our full, actionable report on Construction Partners here, it's free.
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