AMRC) In The Context Of Other Construction and Engineering Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Ameresco (NYSE:AMRC) and its peers.
Construction and engineering companies not only boast technical know-how in specialized areas but also may hold special licenses and permits. Those who work in more regulated areas can enjoy more predictable revenue streams – for example, sprinkler systems need to be maintained every three years. More recently, services addressing energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and engineering companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives topline performance for these companies.
The 19 construction and engineering stocks we track reported a very strong Q4. As a group, revenues beat analysts’ consensus estimates by 4.4% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.1% since the latest earnings results.
Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors.
Ameresco reported revenues of $581 million, up 9.1% year on year. This print exceeded analysts’ expectations by 5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and full-year EBITDA guidance exceeding analysts’ expectations.
CEO George Sakellaris commented, “Strong fourth quarter results capped an excellent year for Ameresco in which we successfully navigated a dynamic business environment and reached the mid to high ends of our annual revenue and profit guidance ranges.
Unsurprisingly, the stock is down 15.2% since reporting and currently trades at $26.26.
Is now the time to buy Ameresco? Access our full analysis of the earnings results here, it’s free.
Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services.
Comfort Systems reported revenues of $2.65 billion, up 41.7% year on year, outperforming analysts’ expectations by 13%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.3% since reporting. It currently trades at $1,273.
