Limbach earnings: what to look for from LMB

What happened

Limbach will report earnings Tuesday after the market closes. Last quarter it posted revenue of $173.5 million, up 21.9% from a year earlier, but missed analysts' revenue expectations and significantly missed their EBITDA estimates and full-year EBITDA guidance.

Confirmed

Global impact / market context

Limbach has repeatedly missed Wall Street revenue estimates, so another shortfall could hurt investor confidence. Analysts expect 18.4% revenue growth this quarter, slower than last year's 37.8%, meaning the company must show it can still grow while delivering profit.

Analyst inference

Peer construction and maintenance companies MYR Group and APi both beat revenue expectations, with growth of 32.5% and 22.5%. That suggests demand in the segment is holding up, which puts pressure on Limbach to show similarly solid results.

Analyst inference

What to watch

1. Watch whether Limbach's revenue meets the 18.4% year-on-year growth analysts expect, after last quarter's $173.5 million came in below estimates and growth slowed from 37.8% a year earlier. Confirmed
2. Watch whether profit, measured by EBITDA (earnings before interest, taxes, depreciation and amortization), improves after last quarter's significant miss and weak full-year guidance, since repeated misses could weigh on the stock. Analyst inference
3. Watch whether management reconfirms or cuts its full-year EBITDA guidance, which means its profit outlook, because a cut would suggest costs are rising or revenue is weaker than expected. Proposed

Evidence

• stockstory.org