EME Earnings Prediction
The chart below shows how EME performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EME sees a -3.62% change in stock price 10 days leading up to the earnings, and a +4.32% change 10 days following the report. On the earnings day itself, the stock moves by +5.63%. This data can give you a slight idea of what to expect for the next quarter's release.
EME Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.77B
9.62%
1.98%
Gross Margin
20.08%
11.80%
1.06%
Operating Margin
10.31%
22.59%
4.88%
Net Margin
7.75%
26.02%
6.02%
EPS
6.33
28.92%
9.14%
No Data Available
EME Earnings Analysis
EMCOR Group Inc Corporation (EME.N) Earnings Conference Call
Positive
Q4 2024 Financial Highlights: Record performance in Q4 2024 with diluted earnings per share of $6.32, operating income of $389 million, and revenues of $3.77 billion, marking a 9.6% year-over-year increase.
Revenue and Operating Income Growth: For the full year 2024, EMCOR achieved $14.6 billion in revenues, a 15.8% increase from the previous year, with operating income of $1.3 billion and an operating margin of 9.2%.
Strong Operating Cash Flow: The company reported strong operating cash flow of $1.4 billion for 2024, demonstrating effective cash management and operational efficiency.
Skilled Labor and Market Growth: EMCOR's ability to attract and retain skilled labor, along with excellence in project planning and execution, has positioned the company well in growing markets such as data centers, healthcare, and energy retrofits.
Acquisition Strategy Expansion: The company completed seven acquisitions in 2024 for approximately $230 million, enhancing its service offerings and market presence.
RPO Growth and Demand: RPOs (Remaining Performance Obligations) grew by 14% year-over-year to $10.1 billion, indicating strong future revenue visibility and demand for services.
Acquisition Impact on Revenue: The acquisition of Miller Electric is expected to contribute significantly to revenue growth in 2025, with an estimated $700 million in RPOs added post-acquisition.
Strong Balance Sheet Strategy: EMCOR's balance sheet remains strong and liquid, allowing for continued investment in organic growth and strategic acquisitions, alongside returning capital to shareholders through dividends and share repurchases.
Strong Operating Margins Projected: The company anticipates strong operating margins in 2025, projecting revenues between $16.1 billion and $16.9 billion, inclusive of the Miller acquisition.
Negative
Supply Chain Disruptions: Ongoing supply chain issues affecting project timelines and costs.
Margin Pressure from Competition: Intense competition in the US and UK site-based services business impacting margins.
Commercial Revenue Decline: Decrease in revenues from the commercial market sector due to reduced demand in commercial real estate and completion of warehousing projects.
Revenue Headwind Forecast: Anticipated revenue headwind of $60 million to $70 million in US Building Services for Q1 2025 due to nonrenewal of facilities maintenance contracts.
Manufacturing Revenue Decline: Decrease in revenues from the Manufacturing and Industrial sector due to timing of project startups.
Operating Income Decline: Operating income for Industrial Services decreased by $2.4 million, indicating challenges in that segment despite revenue growth.
Decline in Operating Margins: Operating margins in UK Building Services declined by 50 basis points due to a shift in project portfolio composition.
Operating Margin Impact Analysis: Projected operating margin for 2025 is expected to be impacted by 25 to 30 basis points from intangible asset amortization related to the Miller Electric acquisition.
EME FAQs
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EME Earning Call Sentiment
EMCOR Group, Inc. (EME) Q4 2024 Earnings Call Transcript
EME.N
-2.05%Positive
EMCOR reported record revenues, increased earnings per share guidance, and substantial shareholder returns through dividends and share repurchases. The acquisition of Miller Electric and expansion into resilient sectors like data centers indicate strategic growth. Despite macroeconomic and regulatory challenges, the company demonstrated strong financial performance with significant revenue and operating income growth. The Q&A session highlighted positive synergies and market demand, particularly in data centers and healthcare. Overall, the strong financials and strategic initiatives suggest a positive stock price movement, potentially exceeding 8%.
