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September 01, 2020 1:32pm
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What To Expect From EMCOR’s (EME) Q3 Earnings

EME Cover Image

Specialty construction contractor company EMCOR (NYSE:EME) will be reporting earnings tomorrow before market open. Here’s what to look for.

EMCOR beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $3.67 billion, up 20.4% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ earnings and EBITDA estimates.

Is EMCOR a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting EMCOR’s revenue to grow 18.2% year on year to $3.79 billion, improving from the 13.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.97 per share.

EMCOR Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. EMCOR has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3% on average.

Looking at EMCOR’s peers in the construction and engineering segment, only Comfort Systems has reported results so far. It missed analysts’ revenue estimates by 1.6%, delivering year-on-year sales growth of 31.5%. The stock was down 10.3% on the results.

Read our full analysis of Comfort Systems’s earnings results here.

Investors in the construction and engineering segment have had steady hands going into earnings, with share prices flat over the last month. EMCOR is up 2% during the same time and is heading into earnings with an average analyst price target of $430 (compared to the current share price of $436.79).

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