Primoris Services (NASDAQ: PRIM) reported Q3 EPS of $0.63, $0.04 better than the analyst estimate of $0.59. Revenue for the quarter came in at $908.9 million versus the consensus estimate of $804.93 million.

• 2018 Q3 revenues of $908.9 million, record level and a 49% increase over 2017 Q3 revenues
• 2018 Q3 operating income of $51.1 million, a 83% increase over 2017 Q3 operating income
• 2018 Q3 net income attributable to Primoris of $32.7 million, or $0.63 per fully diluted share, a record level and a 59% increase over 2017 Q3 net income attributable to Primoris
• 2018 Q3 SG&A expenses at 5.7% of revenue an improvement of 1.3% over 2017 Q3 at 7.0% of revenue
• Total backlog of $2.7 billion at September 30, 2018, compared to $2.6 billion at December 31, 2017
• David King, President and Chief Executive Officer of Primoris, commented, “Primoris had an excellent quarter, achieving record quarterly revenues and record earnings per share while maintaining a strong backlog. Our third quarter results highlight the strength of the Primoris model of serving diverse end markets. We achieved our record revenue and profitability despite permitting challenges and seemingly unending rain. We have continued our focus on execution excellence, client development, and cost reduction programs that reduced our SG&A expenses to 6.4% of year-to-date revenue. Our power, industrial and pipeline projects continue to be meaningful contributors to our success and both gas and electric utility-based MSA work provide a stable recurring, and growing, revenue base. Our new business opportunities are spread across multiple business units, and they are not limited to just a few mega projects but multiple projects for many different customers.”

Mr. King continued, “Our end markets remain fundamentally strong. We continue building upon our strategy of being a leader in building America’s infrastructure driven by strong performance across our operating segments. Our backlog remains near record levels. We are already reducing the debt incurred from our most recent acquisition, and our balance sheet is prepared to support healthy growth in 2019. We have made significant progress in integrating Willbros’ operations, and we are now benefitting from profitable geographic diversification. We continue to see significant opportunities for our services in the next few quarters as we continue expanding our footprint.”

GUIDANCE:

Primoris Services sees FY2018 EPS of $1.50-$1.70, versus the consensus of $1.42.

For earnings history and earnings-related data on Primoris Services (PRIM) click here.