IES Holdings Q1 revenue up 16% on data center demand

Reuters01-30
IES Holdings Q1 revenue up 16% on data center demand

Overview

  • Electrical systems provider's fiscal Q1 revenue rose 16% yr/yr

  • Adjusted EPS for fiscal Q1 missed analyst expectations

  • Company completed acquisition of Gulf Island Fabrication

Outlook

  • IES Holdings anticipates strong demand in data centers to drive segment growth

  • Company expects housing market challenges to persist, affecting Residential segment

  • IES Holdings plans to focus expansion in markets with strong single-family electrical presence

Result Drivers

  • DATA CENTER DEMAND - Strong demand in data centers drove a 51% increase in Communications segment revenue

  • RESIDENTIAL MARKET CHALLENGES - Residential segment revenue declined 11% due to housing market softness

  • GULF ISLAND ACQUISITION - Acquisition of Gulf Island expected to expand Infrastructure Solutions capabilities

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Slight Miss*

$871 mln

$876 mln (1 Analyst)

Q1 Adjusted EPS

Miss

$3.71

$3.82 (1 Analyst)

Q1 Adjusted Net Income

Miss

$75.20 mln

$81 mln (1 Analyst)

Q1 Net Income

$91.40 mln

Q1 Operating Income

Miss

$97.70 mln

$106 mln (1 Analyst)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the construction & engineering peer group is "buy"

  • Wall Street's median 12-month price target for IES Holdings Inc is $440.00, about 7.3% below its January 29 closing price of $474.61

  • The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nGNX7KyzkV

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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