Aegion Approves $10M Share Buyback - Analyst Blog
In a bid to enhance shareholder value, the board of directors
) authorized the repurchase of up to $10 million of Aegion's
shares. The repurchase will be completed this year itself.
In the first half of fiscal 2013, Aegion utilized $15.8 million to repurchase 0.7 million shares through open market purchases. Through 2011 to 2013, Aegion has repurchased 1.6 million of its shares for $30.0 million, or an average price of $19.12 per share.
Aegion reported second-quarter 2013 adjusted earnings from continuing operations of 47 cents per share, up 57% year over year despite a 5% drop in revenues to $242 million. Aegion ended the second quarter with cash and cash equivalents of $118 million. Long-term debt was $244 million as of Jun 30, 2013 and debt-to-capitalization ratio was a manageable 25.5%.
For full-year 2013, Aegion expects earnings in the range of $1.58 to $1.70. Cash flow from operating activities is expected to be $100 million and return on invested capital will be in the range of 7-8%. The company expects robust end-markets and strong market fundamentals to provide support to earnings in the second half. The company will also benefit from a strong backlog as well as new award wins. Share repurchases under the new program will also provide a boost to earnings.
Chesterfield, Mo.-based Aegion is a diversified building and construction company which provides infrastructure protection, proprietary technologies and services. It also offers services related to the rehabilitation and improvement of sewer, water, energy and mining piping systems.
Aegion currently carries a Zacks Rank #3 (Hold). Other stocks in the same industry with favorable Zacks rank include CaesarStone Sdot-Yam Ltd. ( CSTE ), with a Zacks Rank #1 (Strong Buy), while Drew Industries Inc. ( DW ) and Masco Corporation ( MAS ) retain a Zacks Rank #2 (Buy).
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