Earnings Preview: Emcor Group

| About: EMCOR Group, (EME)

Emcor Group (NYSE:EME) is expected to report Q2 earnings before market open Tuesday, July 29, with a conference call scheduled for 10:30 a.m. ET.


Analysts are looking for EPS of 56c on revenue of $1.64B. The consensus range is 53c to 60c for EPS, and $1.56B to $1.72B for revenue, according to First Call. The company gave FY08 EPS and revenue guidance when it reported its Q1 earnings results in April. On June 25, Emcor Group raised its FY08 EPS guidance to $2.22 to $2.42 from $2.08 to $2.28 vs. consensus of $2.31. The company also raised its FY08 revenue guidance to $6.8B to $7B from $6.3B to $6.5B vs. consensus of $6.76B.

Analyst Views

Friedman Billings stated at current valuation it believes the company's downside risk is limited. The firm increased its FY08 and FY09 EPS estimates and price target to $35 from $34. The firm also reiterated its Outperform rating for the company. Keybanc, however, downgraded the company to Hold from Buy, citing lack of visibility. Investors will be interested to see if the company will report strong results for Q2 and if it will update its 2008 guidance.