Energy solutions provider
Pike Electric Corporation
) once again posted disappointing results for the fiscal second
quarter 2014 (ended Dec 31, 2013). The company's earnings per
share in the quarter were 18 cents, down considerably from 67
cents earned in the year-ago quarter. The bottom line, however,
surpassed the Zacks Consensus Estimate of 8 cents.
Revenues generated in the reported quarter were $210.9
million, down 23.0% year over year due primarily to a fall in
core sales and storm-related services.
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PIKE ELECTRIC (PIKE): Free Stock Analysis
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Revenues from the Construction segment fell 21.7% year over year
to $178.7 million. Revenues derived from the Engineering segment
declined 29.1% year over year to $32.1 million.
Cost of revenue in the fiscal second quarter went down 16.1% year
over year and represented 85.3% of total revenue, up from 78.4%
in the year-ago quarter. Gross margin in the quarter was 14.7%, a
decrease of 690 basis points year over year.
General and administrative expenses, as a percentage of total
revenue, stood at 9.4%, up 210 basis points year over year.
Balance Sheet/Cash Flow
Exiting the fiscal second quarter of 2014, Pike's cash and cash
equivalents were $2.4 million versus $2.9 million recorded in the
preceding quarter. The revolving credit facility stood at $220.5
million, roughly flat sequentially.
Pike Corporation sees solid growth opportunities in its
transmission and distribution services businesses.
Pike Corporation currently has a $320.8 million market
capitalization and carries a Zacks Rank #3 (Hold). Some
better-ranked stocks worth considering in the industry include
NRG Yield, Inc.
National Grid plc
The AES Corporation
). While NRG Yield and National Grid hold a Zacks Rank #1 (Strong
Buy), AES Corporation carries a Zacks Rank #2 (Buy).