James Construction Group, a unit of the East Construction Services segment of Primoris Services Corporation PRIM, has secured three new heavy civil contracts worth $18 million. The projects were awarded by the Texas Department of Transportation.
Under the first contract, Primoris will build northbound auxiliary lanes on SH 71 in Colorado County, TX. Scope of the project also includes earthwork, treated subgrade, base and approximately 65,000 tons of asphalt paving. Construction is scheduled to start in second-quarter 2016 and is expected to be completed in third-quarter 2017.
The second project is for overlaying three roadways in Waller and Fort Bend Counties, TX. The project includes milling existing asphalt paving, one course of surface treatment and approximately 38,341 tons of asphalt paving. Construction is scheduled to start in second-quarter 2016 and is expected to be completed in the fourth quarter.
Finally, the third contract is for overlaying US 59 in Wharton County, TX. The project includes milling existing asphalt paving, one course of surface treatment, and approximately 31,000 tons of asphalt paving. Construction is slated to begin next quarter and is expected to be completed in the fourth quarter.
Primoris’ earnings increased 41% year over year to 24 cents per share in fourth-quarter 2015. Revenues also rose 2% year over year, aided by an improvement in the East and West Construction Services segments. However, both sales and earnings missed the respective Zacks Consensus Estimate.
The company’s total backlog was $2.1 billion as of Dec 31, 2015, up 4.8% from 2014 end. Growth in Master Services Agreements (MSAs) work aided total backlog growth.
Primoris currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the sector include Jiangsu Expressway Co. Ltd. JEXYY, Headwaters Incorporated HW and Gibraltar Industries, Inc. ROCK. All these stocks sport a Zacks Rank #1 (Strong Buy).
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