IES Holdings Q1 revenue up 16% on data center demand

Overview

• Electrical systems provider's fiscal Q1 revenue rose 16% yr/yr

• Adjusted EPS for fiscal Q1 missed analyst expectations

• Company completed acquisition of Gulf Island Fabrication

Outlook

• IES Holdings anticipates strong demand in data centers to drive segment growth

• Company expects housing market challenges to persist, affecting Residential segment

• IES Holdings plans to focus expansion in markets with strong single-family electrical presence

Result Drivers

• DATA CENTER DEMAND - Strong demand in data centers drove a 51% increase in Communications segment revenue

• RESIDENTIAL MARKET CHALLENGES - Residential segment revenue declined 11% due to housing market softness

• GULF ISLAND ACQUISITION - Acquisition of Gulf Island expected to expand Infrastructure Solutions capabilities

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for IES Holdings Inc is $440.00, about 7.3% below its January 29 closing price of $474.61

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nGNX7KyzkV

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