Willdan Group (NASDAQ: WLDN) reported Q3 EPS of $0.52, $0.06 better than the analyst estimate of $0.46. Revenue for the quarter came in at $34.5 million versus the consensus estimate of $36.03 million.

• Consolidated Contract Revenue of $71.4 million
• Net Revenue of $34.5 million
• Net Income of $3.3 million
• Diluted earnings per share of $0.35, including Lime transaction costs
• Adjusted diluted earnings per share of $0.52
• Cash flow from operations of $7.5 million

For the third quarter of 2018, Willdan reported consolidated contract revenue of $71.4 million and net income of $3.3 million, or $0.35 per diluted share. This compares with consolidated contract revenue of $69.0 million and net income of $2.9 million, or $0.31 per diluted share, for the third quarter of 2017. Third quarter 2018 results include $0.6 million of third party transaction costs associated with the future acquisition of Lime Energy. For the third quarter of 2018, Net Revenue, defined as revenue, net of subcontractor services and other direct costs (see “Use of Non-GAAP Financial Measures” below), was $34.5 million, up 9.0% compared to the same period in fiscal year 2017. The tax rate for the third quarter of 2018 was 33% versus the Company’s full-year 2018 guidance of 23%.

“We delivered another solid quarter, while generating strong cash flow from operations,” said Tom Brisbin, Willdan’s Chairman and Chief Executive Officer. “Our new business pipeline continues to be at a record level, driven by growth opportunities in newer geographic markets and emerging areas of the energy efficiency services market such as microgrids and natural gas load pockets.”

“We anticipate completing our acquisition of Lime Energy in the fourth quarter, which will significantly expand and diversify our client base and geographic presence across the United States. As a larger company, we believe we will be more competitive across the entire landscape of the energy efficiency services market and improve our positioning for anticipated upcoming program expansions in California and the Northeastern United States,” said Mr. Brisbin.

GUIDANCE:

Willdan Group sees FY2018 EPS of $1.98-$2.03, versus the consensus of $1.55. Willdan Group sees FY2018 revenue of $130-140 million, versus the consensus of $135 million.

For earnings history and earnings-related data on Willdan Group (WLDN) click here.