MYR Group Earnings: Here’s Why the Stock is Rising Now

MYR Group, Inc. (NASDAQ:MYRG) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.02%.

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MYR Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10.34% to $0.32 in the quarter versus EPS of $0.29 in the year-earlier quarter.

Revenue: Decreased 16.19% to $201.34 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: MYR Group, Inc. reported adjusted EPS income of $0.32 per share. By that measure, the company missed the mean analyst estimate of $0.35. It missed the average revenue estimate of $245.51 million.

Quoting Management: Bill Koertner, MYR’s president and CEO said, “Solid execution on our jobs resulted in higher gross profit, EPS and EBITDA for the first quarter of 2013. The material and subcontractor cost components of contract cost on a few large transmission projects were down in the first quarter of 2013 compared to the first quarter of 2012, which resulted in lower revenues; however, our gross margin in the first quarter of 2013 was substantially higher than the prior-year period. Our C&I segment continued to improve in the first quarter, generating significantly higher revenues and margins over the prior-year period. With our highly skilled workforce, extensive fleet of equipment and strong balance sheet, we believe we are attractively positioned within our industry, and we remain optimistic about our outlook over the long term. We continue to focus on both bidding new work as well as executing the projects already in our backlog.”

Key Stats (on next page)…

Revenue decreased 18.74% from $247.76 million in the previous quarter. EPS decreased 30.43% from $0.46 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.47 to a profit $0.48. For the current year, the average estimate is a profit of $1.77, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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