General contractor stocks are experiencing a selloff during Friday's trading. The negative sentiment has been triggered by Pike Electric Corporation (PEC) issuing a weak fiscal year 2009 guidance.
Pike Electric stock is among the sector's biggest laggards, falling about 18%. Shares of Integrated Electrical Services (IESC) and EMCOR Group Inc. (EME) have each dropped over 5% during today's trading.
By 12:55 pm Eastern Time, shares of Pike were down $3.52 to $15.48 per share, while Integrated Electrical Services stock was down $1.50 at $19.42 and EMCOR shares were down $1.80 at $30.41.
China Architectural Engineering (CAEI) and Chicago Bridge & Iron Co. NV (CBI) are other stocks within the sector that are posting losses.
After the closing bell on Thursday, Pike Electric for the fiscal year 2009 expects total revenues to range from $620 million to $650 million and earnings per share to range from $0.55 to $0.65, based on current economic conditions, the estimated impact of the EDS acquisition which closed on September 1, 2008, diesel fuel cost fluctuations, storm volatility and other factors.
Analysts currently estimate earnings of $0.75 per share on revenues of $ 590.74 million for the full year.
The company also reported a marginal increase in its fourth quarter net income with flat per share figures, yet beating the consensus estimate.
The electric distribution and transmission services provider posted fourth quarter net of $5.6 million, or $0.17 per share, marginally higher than the $5.57 million, or $0.17 per share, it reported last year.
On average, analysts polled by First Call/Thomson Financial expected the company to earn $0.14 per share for the quarter.
Total revenues for the quarter grew to $137.82 million from $144.34 million in the fourth quarter of fiscal 2007. Street expected revenues of $136.47 million for the quarter.
Storm restoration revenues for the quarter nearly doubled to $13.9 million from $7.7 million last year.
Net income for the full year period rose to $20.2 million, or $0.60 per share, from $18.4 million, or $0.55 per share last year.
Total revenues for the fiscal year declined to $552.0 million, from $596.8 million last year. The company noted that revenues were impacted by its decision to exit certain accounts representing approximately $23.0 million in core revenues for the 2007 fiscal year.
For comments and feedback: editorial@rttnews.com