Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Matrix Service (NASDAQ:MTRX) and the best and worst performers in the construction and maintenance services industry.
Construction and maintenance services 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, fire escapes need to be inspected every five years. More recently, services to address energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and maintenance services companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives incremental demand for these companies’ offerings.
The 13 construction and maintenance services stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 5.2%.
Luckily, construction and maintenance services stocks have performed well with share prices up 24.6% on average since the latest earnings results.
Matrix Service (NASDAQ:MTRX)
Founded in Oklahoma, Matrix Service (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.
Matrix Service reported revenues of $200.2 million, up 20.6% year on year. This print fell short of analysts’ expectations by 6.9%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.
“Our third quarter results reflect accelerating revenue, supported by backlog growth which advances our return to profitability and enhances our visibility into future earnings,” said John Hewitt, President and Chief Executive Officer of Matrix Service Company.
Matrix Service delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Interestingly, the stock is up 1.8% since reporting and currently trades at $12.46.
Read our full report on Matrix Service here, it’s free.
Best Q1: Comfort Systems (NYSE:FIX)
Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services.
Comfort Systems reported revenues of $1.83 billion, up 19.1% year on year, outperforming analysts’ expectations by 4.2%. The business had an incredible quarter with an impressive beat of analysts’ backlog estimates and a solid beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 36% since reporting. It currently trades at $512.18.
Is now the time to buy Comfort Systems? Access our full analysis of the earnings results here, it’s free.
Concrete Pumping (NASDAQ:BBCP)
Going public via SPAC in 2018, Concrete Pumping (NASDAQ:BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.
Concrete Pumping reported revenues of $93.96 million, down 12.2% year on year, falling short of analysts’ expectations by 4%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Concrete Pumping delivered the slowest revenue growth in the group. As expected, the stock is down 12.3% since the results and currently trades at $6.20.
Read our full analysis of Concrete Pumping’s results here.
WillScot Mobile Mini (NASDAQ:WSC)
Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease.
WillScot Mobile Mini reported revenues of $559.6 million, down 4.7% year on year. This result lagged analysts' expectations by 0.5%. It was a slower quarter as it also produced a significant miss of analysts’ EPS estimates.
The stock is up 10.3% since reporting and currently trades at $28.22.
Read our full, actionable report on WillScot Mobile Mini here, it’s free.
MYR Group (NASDAQ:MYRG)
Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ:MYRG) is a specialty contractor in the electrical construction industry.
MYR Group reported revenues of $833.6 million, up 2.2% year on year. This print surpassed analysts’ expectations by 5%. It was a very strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 35.9% since reporting and currently trades at $165.57.
Read our full, actionable report on MYR Group here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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