Pike Electric Earnings: Here’s Why Investors Don’t Like These Results

Pike Electric Corporation (NYSE:PIKE) 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 down 1.75%.

Pike Electric Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 125% to $0.09 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Rose 12.11% to $200.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pike Electric Corporation reported adjusted EPS income of $0.09 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $210.68 million.

Quoting Management: “Our diversification strategy continues to serve us well. Organic year-over-year revenue growth in transmission construction totaled 44% this quarter, contributing to a record year of more than $100 million in that portion of our business,” said J. Eric Pike, Chairman and CEO of Pike. “We are strongly positioned to benefit from the improving trends in our industry, including the ongoing recovery in distribution construction related to growth in the U.S. housing industry.”

Key Stats (on next page)…

Revenue decreased 26.85% from $273.67 million in the previous quarter. EPS increased 12.5% from $0.08 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.21 and has not changed. For the current year, the average estimate is a profit of $1.14, 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)