Orion Marine Group, Inc.
), a leading heavy civil marine contractor serving the
infrastructure sector, recently won a $15 million contract. The
deal requires Orion to partially dismantle and reconstruct a
Additionally, according to the agreement, Orion will be
responsible for installing new crane rails for the Port of Tacoma
in Tacoma, Wash. Orion expects to begin the onsite construction
during third-quarter 2013 and complete the project in
approximately 13 months.
The contract is the second of its kind procured by Orion in
the last two months. Recently, the company had received a
contract award of $20 million in the Gulf Coast region. The scope
of the contract primarily involved constructing and dredging a
new ship dock for a private client in the region.
Orion is believed to have one of the strongest dredging
equipments in the industry. Some of the company's main customers
include the U.S. Marine Transportation System and the cruise
industry. The company is one of the leading providers of a broad
range of marine construction and contracting services.
However, of late, Orion's share prices witnessed a downturn
after it missed its second-quarter earnings estimates. Shares of
Orion were down about 5.4% after the quarterly results and closed
at $10.42 on Aug 13, after touching a low of $9.90 on Aug 7. The
second-quarter results were posted on Aug 1. Earnings per share
came in at a penny, which was below the Zacks Consensus Estimate
of 3 cents. However, it improved from a loss of 20 cents in the
same quarter last year.
Post the earnings miss, analysts have revised their estimates
downwards for both 2013 and 2014. The Zacks Consensus Estimate
for 2013 is now 11cents, down from 14 cents before the
second-quarter earnings release. The 2014 consensus is currently
pegged at 29 cents, down from the previous estimate of 36 cents
over the last 30-day period.
With falling estimates, investors should remain cautious about
this stock which currently has a Zacks Rank #5 (Sell).
Better-placed stocks within the industry that are worth a look
Meritage Homes Corporation
). All these stocks carry a Zacks Rank #2 (Buy).
MERITAGE HOMES (MTH): Free Stock Analysis
MASTEC INC (MTZ): Free Stock Analysis Report
ORION MARINE GP (ORN): Free Stock Analysis
PRIMORIS SERVCS (PRIM): Free Stock Analysis
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