Yahoo Finance Unpacking Q1 Earnings: Limbach (NASDAQ:LMB) In The Context Of Other Construction and Maintenance Services Stocks
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Limbach (NASDAQ:LMB) and the best and worst performers in the construction and maintenance services industry.
Construction and maintenance services 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, fire escapes need to be inspected every five years–. More recently, services to address energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and maintenance services companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives incremental demand for these companies’ offerings.
The 10 construction and maintenance services stocks we track reported an ok Q1; on average, revenues were in line with analyst consensus estimates. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but construction and maintenance services stocks have shown resilience, with share prices up 6.4% on average since the previous earnings results.
Limbach (NASDAQ:LMB)
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Limbach reported revenues of $119 million, down 1.7% year on year, falling short of analysts' expectations by 2.7%. Overall, it was a solid quarter for the company with an impressive beat of analysts' earnings estimates and optimistic EBITDA guidance for the full year.
“I am pleased with our performance in the first quarter. We advanced our strategy of becoming a partner to building owners with mission critical building systems by accelerating our shift to ODR through acquisitions and organic growth. As a result, we are increasing Adjusted EBITDA guidance for the year,” said Michael McCann, Limbach’s President and Chief Executive Officer.
The stock is up 29.8% since reporting and currently trades at $62.60.
Is now the time to buy Limbach? Access our full analysis of the earnings results here, it's free.
Best Q1: Great Lakes Dredge & Dock (NASDAQ:GLDD)
Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.
Great Lakes Dredge & Dock reported revenues of $198.7 million, up 25.7% year on year, outperforming analysts' expectations by 13.2%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Great Lakes Dredge & Dock delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 18.9% since reporting. It currently trades at $8.38.
Is now the time to buy Great Lakes Dredge & Dock? 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 and slowest revenue growth in the group. As expected, the stock is down 21.9% since the results and currently trades at $9.25.
Read our full analysis of Matrix Service's results here.
Granite Construction (NYSE:GVA)
Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE:GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.
Granite Construction reported revenues of $672.3 million, up 20% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is up 14.2% since reporting and currently trades at $62.73.
Read our full, actionable report on Granite Construction here, it's free.
WillScot Mobile Mini (NASDAQ:WSC)
Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease.
WillScot Mobile Mini reported revenues of $587.2 million, up 3.8% year on year, surpassing analysts' expectations by 1.1%. Zooming out, it was a slower quarter for the company with underwhelming EBITDA guidance for the full year and a miss of analysts' earnings estimates.
WillScot Mobile Mini had the weakest full-year guidance update among its peers. The stock is down 1.3% since reporting and currently trades at $37.16.
Read our full, actionable report on WillScot Mobile Mini here, it's free.
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