NYSE$PRIM

Primoris Services Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Primoris experienced a decrease in revenue and profitability during the first quarter of 2022, with positive performance in utilities and energy/renewables segments offset by losses in the pipeline segment.

Primoris Services Corporation reported a revenue of $784.4 million for Q1 2022, a decrease compared to the same period last year. The company experienced a net loss of $1.7 million, with a loss per share of $0.03. Adjusted EPS was $0.01. Despite the overall decrease in revenue, Utilities and Energy/Renewables segments showed growth. The company's backlog reached a record $4.025 billion, driven by growth markets.

  • Revenue decreased to $784.4 million due to a decline in the Pipeline segment, partially offset by growth in Utilities and Energy/Renewables segments.
  • Net loss was $1.7 million, and EPS loss was $0.03.
  • Record backlog of $4.025 billion, an increase of 30% over the prior year, driven by Utilities and Energy/Renewables segments.
  • Gross profit margin decreased to 7.2% due to negative gross margins in the Pipeline segment.

Headline financials

Total Revenue

$784M

Previous: $818M-4.1%
EPS (adj)

$0.01

Previous: $0.12-91.7%
Total Backlog

$4.03B

Previous: $3.1B+29.8%
Capital Expenditures

-$33.2M

Previous: -$19.1M-73.8%
Free Cash Flow

-$34.8M

Previous: -$13.2M-163.4%
Net Income

-$1.67M

Previous: $5.85M-128.6%
Operating Income

$708K

Previous: $12.9M-94.5%
Gross Profit

$56.5M

Previous: $80.2M-29.6%
Cash & Equivalents

$174M

Previous: $213M-18.5%
Total Assets

$2.6B

Previous: $2.52B+3.3%
Stock-Based Comp

$1.55M

Previous: $6.15M-74.8%

Revenue & EPS history

Primoris · Revenue · Quarterly

$784M

Q1 2022-4.1%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Primoris · $230M total across 1 segment · Q4 2020

  • Utilities
    $230M-2.6%

Forward guidance

The Company is raising its estimates for the year ending December 31, 2022. Net income is expected to be between $2.20 and $2.40 per fully diluted share. Adjusted EPS is estimated in the range of $2.49 to $2.69 for 2022.

Tailwinds

  • Net income is expected to be between $2.20 and $2.40 per fully diluted share.
  • Adjusted EPS is estimated in the range of $2.49 to $2.69 for 2022.
  • Utilities targeted gross margins are in the range of 10 to 13 percent
  • Energy/Renewables targeted gross margins are in the range of 9 to 12 percent
  • Pipeline targeted gross margins are in the range of 9 to 11 percent

Headwinds

  • The Company is targeting SG&A expense as a percentage of revenue in the low-to-mid six percent range for the 2022 calendar year.
  • The Company expects its effective tax rate for 2022 to be approximately 27 percent but may vary depending on the mix of states in which the Company operates.
  • Capital expenditures for the remaining nine months of 2022 are expected to total between $90 million and $110 million, which includes $55 million to $75 million for construction equipment.
  • The guidance provided above constitutes forward-looking statements, which are based on current economic conditions and estimates, and the Company does not include other potential impacts, such as changes in accounting or unusual items.
  • Backlog, including estimated MSA revenue, should not be considered a comprehensive indicator of future revenue.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.1%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.2%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+16.1%

Q3 2024

Best reaction

-15.1%

Q4 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.4%-43.5%-31.4%
Q4 2025-6.4%-9.0%-15.1%
Q3 2025-10.7%-12.4%-12.2%
Q1 2025-2.5%+1.8%+9.9%
Q4 2024+9.6%+11.5%-10.5%
Q3 2024+16.1%+28.4%+33.5%
Q2 2024+0.8%+3.4%+0.9%
Q1 2024+5.3%+3.5%+9.9%
Q4 2023-5.4%-0.7%+5.2%
Q3 2023+1.5%+0.4%+3.6%
Q2 2023+5.7%+7.2%+7.0%
Q1 2023+0.6%+0.9%+24.4%
Q4 2022+4.9%+6.2%-7.0%
Q3 2022+3.8%+4.5%-0.8%
Q2 2022-5.8%-0.4%-12.8%
Q1 2022-7.2%-2.6%+6.7%
Q4 2021-10.6%-4.7%-5.1%
Q3 2021-6.6%-11.3%-14.8%
Q2 2021-10.2%-9.1%-10.7%
Q1 2021-1.6%-2.7%-2.7%
Q4 2020+7.9%+4.6%-1.0%
Q3 2020+8.2%+19.7%+37.0%
Q2 2020+9.4%+7.3%+15.4%
Q1 2020-5.0%+1.2%+23.6%
Q4 2019-10.5%-15.9%-32.4%
Q3 2019+12.5%+4.9%+3.0%
Q2 2019+1.8%+3.8%+0.5%
Q1 2019-1.4%-4.8%-13.0%
Q4 2018+6.9%+5.2%-5.7%
Q3 2018+6.8%+6.2%+3.3%
Q2 2018-9.8%-7.5%-9.8%
Q1 2018-2.1%-4.1%+5.6%
Q4 2017+1.9%+8.3%+2.1%
Q3 2017-0.2%-6.9%+1.0%
Q2 2017+4.1%+4.9%+12.4%
Q1 2017+6.6%+5.8%+5.9%
Q4 2016+1.2%-0.7%-10.1%
Q3 2016+14.5%+18.3%+22.4%
Q2 2016-6.2%-6.2%+9.1%
Q1 2016-1.5%
Q4 2015+4.9%
Q3 2015+5.6%
Q2 2015+0.5%
Q1 2015+0.2%
Q4 2014-15.1%
Q3 2014-0.5%
Q2 2014+14.6%
Q1 2014+5.9%
Q4 2013-0.3%
Q3 2013+6.8%
Q2 2013+3.7%
Q1 2013-2.4%
Q4 2012+6.3%
Q3 2012-5.9%
Q4 2011+0.8%
Q2 2012+0.8%
Q1 2011-11.2%
Q1 2012-11.2%
Q4 2009-1.3%
Q3 2011+0.7%
Q3 2010+0.7%
Q2 2011-12.8%
Q2 2010-12.8%
Q4 2010-12.8%
Q1 2010+3.6%

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