Primoris Services Corp. (PRIM) Thursday reported a 36 percent increase in fourth-quarter profit, as the construction and infrastructure services company saw growth in pipeline and industrial work with acquisitions further propping up results, partly offset by lower gross margin. Revenues for the quarter quite easily topped Wall Street estimates.
Shares of the company gained more than 5 percent in morning trade on the Nasdaq.
"Our revenue for both the quarter and the year were at record levels, with a healthy combination of both organic and acquisitive growth...," said CEO Brian Pratt.
The Dallas, Texas-based company reported fourth-quarter net income of $17 million or $0.33 per share, an increase from $12.5 million or $0.24 per share last year.
On average, 8 analysts polled by Thomson Reuters expected earnings of $0.29 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter jumped 29 percent to $480.9 million from $373 million a year ago. Analysts on consensus expected revenues of $402.81 million for the quarter.
The company benefited from increased pipeline work in the West Construction Services segment and enhanced industrial work in the East Construction Services segment, as well on the impact of Sprint Pipeline Services LP and The Saxon Group acquisitions.
Results were partly impacted by gross margin that slid to 11.4 percent from 13.7 percent in the prior year. This was due mainly to the completion of the Ruby pipeline project in 2011 and the lower margins associated with the start-up of the highway projects in the Belton, Texas area in 2012.
At December 2012, total backlog was $1.35 billion, compared to $1.16 billion in the prior year, and the company expects about 57 percent of the backlog to be recognized as revenue in 2013.
Primoris has declared a cash dividend of $0.03 per share, payable on or about April 15 to stockholders of record on March 29.
Primoris is trading at $20.20, up 5.87%.
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