EMCOR Shares Jump After Contractor Raises Outlook on Strong Demand

Dow Jones07-30
 

EMCOR Group shares rose Thursday morning after the specialty construction contractor reported higher second-quarter revenue and profit and raised its full-year guidance.

Shares were up about 20% at $804.61 Thursday morning

The Norwalk, Conn.-based company on Thursday posted second-quarter net income of $403.7 million, or $9.06 a share, up from $302.2 million, or $6.72 a share, a year earlier.

Revenue rose 20% to $5.15 billion, from $4.3 billion a year earlier, driven by continued demand across its end markets. The company reported record remaining performance obligations, a measure of contracted future work, of $17.14 billion, up 43.9% from a year earlier.

EMCOR raised its full-year outlook, now expecting revenue of $20 billion to $20.5 billion, up from its prior forecast for $18.5 billion to $19.25 billion. It expects earnings per share between $32.00 to $33.25, compared with previous guidance of $28.25 to $29.75.

Chief Executive Tony Guzzi said the company benefited from sustained demand across several end markets and continued success in winning new business. The largest increases in remaining performance obligations came from the network and communications, water and wastewater, institutional and healthcare sectors.

 
 

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