EMCOR Group Inc (NYSE: EME) shares soared 5.75% in pre-market trading on Wednesday after the specialty construction contractor reported record financial results for the fourth quarter and full year 2024, driven by strong demand across key markets. The company also provided an optimistic outlook for fiscal 2025, exceeding analysts' expectations.
In the fourth quarter, EMCOR's revenue rose 9.6% year-over-year to $3.77 billion, while diluted earnings per share (EPS) increased 41.4% to $6.32, beating estimates. For the full year 2024, the company reported record revenues of $14.57 billion and record diluted EPS of $21.52.
Looking ahead to fiscal 2025, EMCOR expects revenues between $16.1 billion and $16.9 billion, operating margins between 8.5% and 9.2%, and diluted EPS in the range of $22.25 to $24.00. The revenue and EPS guidance topped analysts' consensus estimates, fueling the stock's surge.
Chairman, President, and CEO Tony Guzzi attributed the strong performance to continued momentum in demand, particularly in key markets like data centers, high-tech manufacturing, network and communications, and energy. The company's record remaining performance obligations of $10.1 billion, up 14.2% year-over-year, also provide solid visibility for the upcoming year.
EMCOR further demonstrated confidence in its future prospects by increasing its share repurchase program by $500 million, highlighting its commitment to returning capital to shareholders.
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