Energy solutions provider
) reported lower-than-expected results for the fiscal third
quarter 2014 (ended Mar 31, 2014). Earnings were 9 cents per
share, up 12.5% year over year. The bottom-line result, however,
lagged the Zacks Consensus Estimate of 11 cents.
Pike generated revenues of $207.6 million, reflecting an
increase of 3.7% year over year and marginally surpassing the
Zacks Consensus Estimate of $205 million. The year-over-year
improvement was primarily due to higher revenues from
storm-related services and core services in the Engineering
segment, offset partially by fall in core revenues generated in
the Construction segment.
Revenues from the Construction segment inched up 1.2% year over
year to $168.7 million. The Engineering segment recorded a 15.2%
year-over-year increase in revenues that came in at $38.9
Pike's cost of operations increased 3.5% year over year and
represented 87.4% of total revenue, down from 87.5% in the
year-ago quarter. Gross margin increased 10 basis points (bps) to
12.6%. General and administrative expenses, as a percentage of
total revenue, was stable at 9.3%
Balance Sheet/Cash Flow
Exiting the fiscal third quarter 2014, Pike Corporation had cash
and cash equivalents of $3.8 million versus $2.4 million in the
preceding quarter. The revolving credit facility increased 7.7%
sequentially to $237.5 million.
Pike Corporation sees solid growth opportunities in its
engineering business in the quarters ahead.
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Pike Corporation currently has a $289.3 million market
capitalization and carries a Zacks Rank #3 (Hold). Some
better-ranked stocks worth considering in the industry include
Black Hills Corporation
Brookfield Infrastructure Partners L.P.
), all of which carry a Zacks Rank #1 (Strong Buy).