Primoris Services (NASDAQ: PRIM) reported Q1 EPS of $0.04, $0.03 better than the analyst estimate of $0.01. Revenue for the quarter came in at $661.6 million versus the consensus estimate of $629.35 million.

Financial Highlights

• 2019 Q1 revenue of $661.6 million, compared to $504.1 million in 2018 Q1
  • 2019 Q1 MSA revenue of $292.9 million, a 100% increase over 2018 Q1 MSA revenue
• 2019 Q1 net income attributable to Primoris of $1.9 million, or $0.04 per fully diluted share, compared to $0.7 million, or $0.01 per fully diluted share, in 2018 Q1
• 2019 Q1 SG&A 6.5% of revenue, compared to 2018 Q1 7.3% of revenue
• Record Total Backlog of $2.9 billion at March 31, 2019; 6.5% increase over December 31, 2018
  • Both Fixed Backlog and MSA Backlog grew sequentially from December 31, 2018

David King, Executive Chairman and Chief Executive Officer of Primoris, commented, “We are proud of Primoris’ first quarter results achieving record backlog and exceeding net income expectations. Our record first quarter revenue, continued focus on operational excellence, and disciplined focus on SG&A all contributed to our strong performance. We were able to overcome the headwinds presented by severe weather and our typical seasonality to deliver positive results across all of our operating segments. Our total backlog is at an all-time high, thanks to sequential improvements in both our MSA backlog and Fixed backlog. We believe the diversity of our business model is fundamental to our consistent history of positive quarterly earnings.”

Mr. King continued, “Looking forward to the remainder of 2019 and into 2020, we are encouraged by the prospects for growth available in multiple end markets and are re-affirming our guidance. Our MSA revenue, anchored by our natural gas and electric utility work, continues to grow. We believe the demand for grid hardening will continue to expand, and there are also opportunities for us to leverage our skillset. We have seen the market for smaller diameter pipeline work and field services projects increase, and we have confidence in the large diameter pipeline market. Recent progress towards FID on major Gulf Coast petrochemical projects have been a positive signal for our industrial markets. We are also interested in the growing opportunities in renewable energy, and we are gaining a strong reputation as a turnkey provider of large-scale renewable projects. The breadth and depth of our opportunity funnel should lead to another prosperous year for Primoris, while firmly supporting multi-year growth.”

GUIDANCE:

Primoris Services sees FY2019 EPS of $1.60-$1.80, versus the consensus of $1.66.

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