Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at MDU Resources (NYSE:MDU) 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. 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 engineering stocks have performed well, with the share prices up 12.3% on average since the previous earnings results.
MDU Resources (NYSE:MDU) Founded to provide electricity to towns in Minnesota, MDU Resources (NYSE:MDU) provides products and services in the utilities and construction materials industries.
MDU Resources reported revenues of $1.21 billion, down 15.1% year on year, falling short of analysts' expectations by 8.4%. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
"Thanks to the continued dedication and hard work of our employees providing essential services to our customers, we finished the first quarter with strong performance across our businesses," said Nicole A. Kivisto, president and CEO of MDU Resources.
MDU Resources delivered the slowest revenue growth of the whole group. The stock is up 2.5% since reporting and currently trades at $25.49.
Is now the time to buy MDU Resources? Find out by reading the original article on StockStory, it's free. Best Q1: Dycom (NYSE:DY)Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure.
Dycom reported revenues of $1.14 billion, up 9.3% year on year, outperforming analysts' expectations by 4.5%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
The market seems happy with the results as the stock is up 15.5% since reporting. It currently trades at $178.31.
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 had the weakest performance against analyst estimates in the group. As expected, the stock is down 15.6% since the results and currently trades at $10.
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 scored the highest full-year guidance raise among its peers. The stock is up 12.8% since reporting and currently trades at $381.95.
Orion (NYSE:ORN)Originally called Orion Marine Group, Orion Group (NYSE:ORN) provides construction services for marine infrastructure and industrial projects.
Orion reported revenues of $160.7 million, flat year on year, falling short of analysts' expectations by 8.1%. Overall, it was a weak quarter for the company with some shareholders hoping for a better result.
The stock is up 34.6% since reporting and currently trades at $10.69.
This content was originally published on Stock Story
