Primoris Services Corporation (PRIM) reported weaker-than-expected Q2 results, missing both earnings and revenue estimates due to lower revenues in the pipeline segment. Shares of the specialty construction and infrastructure company have gained 66% over the past year.
Earnings of $0.67 per share fell short of analysts’ expectations of $0.74. The company reported earnings of $0.68 per share in the prior-year period.
Additionally, revenues decreased 3% year-over-year to $881.6 million and lagged consensus estimates of $951.5 million.
The decrease in revenues reflected a 58% decline in revenue for the Pipeline segment, partially offsetting a 20% increase in Energy/Renewables revenue and 25% growth in Utilities segment revenue. (See Primoris stock charts on TipRanks)
Looking ahead, the company provided its full year 2021 guidance. Primoris forecasts earnings to be in the range of $2.30 to $2.50 per share, while the consensus estimate is $2.46 per share.
UBS analyst Steven Fisher recently initiated coverage of Primoris with a Buy rating and a price target of $38 (33.6% upside potential).
Fisher foresees potential upside for shares based on its above-average growth performance as well as impressive margins. He favors the stock as it is poised to capture structural growth potential in its crucial end markets.
Overall, the stock has a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average Primoris Services price target of $36.67 implies 28.8% upside potential from current levels.
TipRanks data shows that financial blogger opinions are 100% bullish on PRIM, compared to a sector average of 71%.
Related News:
Centerspace Beats Q2 Earnings Expectations, Raises FY2021 Guidance
SolarEdge Technologies Posts Upbeat Q2 Results; Shares Gain 10% After-Hours
Black Stone Minerals Misses Q2 Estimates; Shares Drop 2.4%
