MYR Group (MYRG) Q3 earnings: what to expect

What happened

MYR Group, an electrical construction and infrastructure services provider, will report earnings this Wednesday after the bell. Last quarter it reported revenue of $1.08 billion, up 20.1% year on year, beating analysts' revenue, EBITDA and EPS estimates.

Confirmed

Global impact / market context

Revenue is expected to grow 21.7% this quarter, improving from 7% a year earlier. A faster sales increase means more work is being performed, which can lift profit if costs stay controlled. However, MYR Group has missed revenue estimates multiple times over the past two years.

Analyst inference

Analysts reconfirmed estimates over the last 30 days, suggesting they expect the business to stay the course. Among construction and engineering peers, only Comfort Systems has reported, beating revenue estimates with 53.7% growth yet its stock fell 10%, showing strong sales do not guarantee share price gains.

Analyst inference

What to watch

1. Compare reported revenue with the 21.7% year-on-year growth analysts expect this quarter, up from 7% growth in the same quarter last year. Confirmed
2. Watch whether MYR Group beats or misses revenue estimates, given it has missed Wall Street revenue estimates multiple times over the past two years. Proposed
3. Check whether MYR Group's results and share price reaction resemble Comfort Systems, whose stock fell 10% despite exceeding revenue estimates with 53.7% sales growth. Analyst inference

Evidence

• stockstory.org