NORWALK, Conn. - EMCOR Group, Inc. (NYSE: EME) has reported a robust first quarter for 2024, with earnings and revenue surpassing analyst expectations and the company raising its full-year guidance, which sent its shares up by 6.37%.
For the first quarter ended March 31, 2024, EMCOR announced revenues of $3.43 billion, a significant 18.7% increase from the $2.89 billion reported in the same period last year. The company's diluted earnings per share (EPS) also saw a substantial rise, reaching $4.17, which is a 79.7% jump from the $2.32 EPS of the first quarter of 2023.
These figures comfortably beat the analyst consensus, which had predicted an EPS of $2.84 and revenue of $3.17 billion. The strong performance is partly attributed to the company's Electrical and Mechanical Construction segments, which have exceeded expectations, and a healthy project pipeline that has contributed to a record remaining performance obligations of $9.18 billion, up 16.5% year-over-year (YoY).
Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR, expressed confidence in the company's trajectory, citing the significant YoY increase in remaining performance obligations and a robust project pipeline as key factors in the decision to raise the financial guidance for 2024.
In light of the positive first-quarter results and current operating conditions, EMCOR has increased its full-year 2024 revenue guidance range to $14.0 billion - $14.5 billion, up from the previous range of $13.5 billion - $14.0 billion. The company also raised its full-year 2024 diluted EPS guidance range to $15.50 - $16.50, from the prior range of $14.00 - $15.00. This updated guidance surpasses the analyst consensus of $14.50 EPS and $13.741 billion in revenue.
Mr. Guzzi highlighted the company's ability to deploy skilled talent and focus on operational excellence as the driving forces behind its sustained success. He also mentioned the company's balanced approach to capital allocation, referencing recent acquisitions, share repurchases, and an increased dividend as evidence of EMCOR's commitment to growth and shareholder value.
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