Markets

Primoris Receives Parking Structure Award Worth $10 M

A pen and a pair of glasses on top of a graph
Credit: Shutterstock photo

Primoris Services CorporationPRIM announced that ARB Structures, part of its West Construction Services segment, has been awarded a new parking structure award valued at $10 million. This marks the third parking structure project from this Southern California customer.

Work on the project will begin in the third quarter of 2015 and is slated to be completed in the third quarter of 2016. Per the contract, Primoris will build a 163,668 square foot parking structure that will have five levels, including one below-ground level. It will hold the capacity to provide over 600 parking spaces. The parking structure is part of the restoration of the historic Ford Factory building in West Los Angeles, CA.

The scope of project includes site clearing and demolition, mass excavation, and grading. In addition, the project includes bicycle storage racks on the ground floor, illuminated signage, wire mesh partitions, a car count system, and architectural precast that will secure the new structure to an existing building.

On Aug 19, Primoris Services received a new underground award for a steel gas main replacement program outside of Los Angeles, CA, valued in excess of $20 million. The contract was secured by the ARB Underground division, a part of Primoris' West Construction Services segment.

Primoris reported a disappointing second quarter with earnings at 7 cents per share, a 77% plunge from 31 cents in the year-ago quarter. The primary reason for the decrease was the impact of unusually wet weather during the quarter. As a result of heavy rainfall, the company suspended operations on various projects and incurred additional costs to recover from the extreme weather conditions. The rain affected the ability of work crews to progress projects in three of Primoris' major business units.

Nevertheless, the company stated that the weather impact has not affected its bidding opportunities for the remainder of this year and the next. The business drivers remain positive and opportunities are on the rise across its major end markets: industrial, power, distribution, large diameter pipeline, and LNG facilities. Backlog is expected to increase in the second half of this year and the momentum is likely to continue in 2016 and thereafter.

Dallas, TX-based Primoris is a specialty contractor and infrastructure company that serves diverse-end markets. The company also provides a wide range of construction, fabrication, maintenance, replacement, water and wastewater as well as engineering services to major public utilities, petrochemical companies, energy companies, municipalities and other customers.

Primoris currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the sector are China Railway Construction Corporation Limited CWYCY , China Railway Group Limited CRWOY and Dycom Industries Inc. DY . All these stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CHINA RAILWY CP (CWYCY): Free Stock Analysis Report

PRIMORIS SERVCS (PRIM): Free Stock Analysis Report

DYCOM INDS (DY): Free Stock Analysis Report

CHINA RAILWY GP (CRWOY): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

PRIM DY

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More