Emcor Group Inc (EME) Hits New 12-Month High on Strong Earnings

Emcor Group Inc (NYSE:EME) reached a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $76.59 and last traded at $76.28, with a volume of 452,906 shares traded. The stock had previously closed at $70.26.

The construction company reported $1.09 earnings per share for the quarter, topping the consensus estimate of $0.82 by $0.27. Emcor Group had a return on equity of 16.27% and a net margin of 3.43%. The company had revenue of $1.87 billion for the quarter, compared to analyst estimates of $1.93 billion. During the same period in the prior year, the firm posted $0.85 EPS. The business’s revenue was down 2.9% compared to the same quarter last year.

The company also recently announced a quarterly dividend, which will be paid on Monday, October 30th. Shareholders of record on Tuesday, October 17th will be given a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 0.40%. The ex-dividend date is Monday, October 16th. Emcor Group’s payout ratio is currently 9.61%.

Emcor Group declared that its Board of Directors has approved a share buyback plan on Thursday, October 26th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the construction company to buy up to 2.4% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its stock is undervalued.

A number of research analysts have recently commented on EME shares. Stifel Nicolaus reissued a “buy” rating on shares of Emcor Group in a report on Thursday. Zacks Investment Research raised Emcor Group from a “hold” rating to a “buy” rating and set a $76.00 price objective on the stock in a report on Monday, July 31st. KeyCorp reissued a “hold” rating on shares of Emcor Group in a report on Friday, August 25th. Finally, BidaskClub lowered Emcor Group from a “buy” rating to a “hold” rating in a report on Wednesday, July 19th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $72.33.

Several hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. grew its holdings in Emcor Group by 11,403.3% in the 1st quarter. BlackRock Inc. now owns 6,707,216 shares of the construction company’s stock valued at $422,217,000 after buying an additional 6,648,909 shares during the last quarter. Voya Investment Management LLC grew its holdings in Emcor Group by 432.9% in the 2nd quarter. Voya Investment Management LLC now owns 622,251 shares of the construction company’s stock valued at $40,682,000 after buying an additional 505,481 shares during the last quarter. TimesSquare Capital Management LLC grew its holdings in Emcor Group by 75.3% in the 2nd quarter. TimesSquare Capital Management LLC now owns 882,209 shares of the construction company’s stock valued at $57,679,000 after buying an additional 378,815 shares during the last quarter. Vanguard Group Inc. grew its holdings in Emcor Group by 3.9% in the 1st quarter. Vanguard Group Inc. now owns 4,916,914 shares of the construction company’s stock valued at $309,520,000 after buying an additional 183,084 shares during the last quarter. Finally, TIAA CREF Investment Management LLC grew its holdings in Emcor Group by 53.9% in the 2nd quarter. TIAA CREF Investment Management LLC now owns 385,362 shares of the construction company’s stock valued at $25,195,000 after buying an additional 134,957 shares during the last quarter. 92.90% of the stock is currently owned by institutional investors and hedge funds.

The firm has a market cap of $4.70 billion, a PE ratio of 23.79 and a beta of 0.89. The stock’s 50 day moving average price is $69.00 and its 200-day moving average price is $65.98.

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About Emcor Group

EMCOR Group, Inc is an electrical and mechanical construction, and facilities services firm in the United States. The Company provides building services and industrial services. Its segments are United States electrical construction and facilities services; United States mechanical construction and facilities services; United States building services; United States industrial services, and United Kingdom building services.

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