Looking back on construction and engineering stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including FTAI Infrastructure (NASDAQ:FIP) 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 19 construction and engineering stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 0.7% below.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, construction and engineering stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
FTAI Infrastructure (NASDAQ:FIP) Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ:FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
FTAI Infrastructure reported revenues of $84.89 million, up 3.7% year on year. This print fell short of analysts’ expectations by 9.5%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
FTAI Infrastructure delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 9.8% since reporting and currently trades at $9.06.
Is now the time to buy FTAI Infrastructure? Find out by reading the original article on StockStory, it’s free.
Best Q2: 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 $170.1 million, up 28.2% year on year, outperforming analysts’ expectations by 3.5%. 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 8.1% since reporting. It currently trades at $8.76.
Orion (NYSE:ORN) Established in 1994, Orion (NYSE:ORN) provides construction services for marine infrastructure and industrial projects.
Orion reported revenues of $192.2 million, up 5.3% year on year, falling short of analysts’ expectations by 3.4%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 34.7% since the results and currently trades at $7.22.
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 $604.6 million, up 3.9% year on year, falling short of analysts’ expectations by 1.7%. More broadly, it was a weak quarter for the company with underwhelming EBITDA guidance for the full year and a miss of analysts’ Leasing revenue estimates.
WillScot Mobile Mini had the weakest full-year guidance update among its peers. The stock is down 6.6% since reporting and currently trades at $37.19.
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 $1.20 billion, up 15.5% year on year, in line with analysts’ expectations. Revenue aside, it was a very strong quarter for the company with a decent beat of analysts’ earnings estimates.
The stock is down 9.7% since reporting and currently trades at $175.70.
This content was originally published on Stock Story
