M-tron Industries, Inc. (MPTI) Q3 Earnings and Revenues Surpass Estimates

M-tron Industries, Inc. MPTI or MtronPTI, is scheduled to report third-quarter 2024 (ended Sept. 30, 2024) results on Nov. 13, after the closing bell.

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This designer and manufacturer of highly engineered electronic components reported better-than-expected results for the third quarter of 2024. The company’s earnings per share (EPS) and revenues beat the Zacks Consensus Estimate by 26% and 5.4%.

On a year-over-year basis, EPS grew 34% and revenues increased 16.4%, driven by defense sector demand, with gross margin improving to 46.6% from 41.6% a year ago. Adjusted EBITDA rose 30.7% to $2.52 million. The company's growth since its 2022 IPO was emphasized by continued revenue growth, higher new orders, and a positive order backlog trend.

MtronPTI surpassed the consensus mark in three of the last four quarters. The average surprise over this period is 9.2%.

M-tron Industries, Inc. Price and EPS Surprise

M-tron Industries, Inc. price-eps-surprise | M-tron Industries, Inc. Quote

How Are Estimates Placed for MPTI Stock?

The Zacks Consensus Estimate for the third-quarter EPS has remained unchanged at 54 cents over the past 60 days. The estimated figure indicates a 5.3% decline from the year-ago reported figure. Nonetheless, the consensus mark for revenues is $12.2 million, indicating 12% year-over-year growth.

Factors Influencing MtronPTI’s Q3 Performance

The company is seeing positive momentum owing to strong shipments of defense program products and solutions. The company’s third quarter is likely to have gained from strategic investments in the defense sector, new products entering volume production and improved production efficiencies, supported by ongoing investments in personnel and equipment.

The company is strategically positioned to execute its organic growth plans, emphasizing key sectors with substantial potential. MPTI focuses on areas, such as space and satellite technologies, radar applications and electronic warfare solutions, particularly with products like the e-Vibe series OCXOs, designed for stability under dynamic conditions. This characteristic is likely to have contributed to quarterly results.

Overall, MPTI’s strong operational footing and growth trajectory, particularly in its defense and aerospace markets, with continued expansion across high-demand areas like radar, satellite, and electronic warfare applications, are major tailwinds.

However, the company has been experiencing cost pressures primarily due to increased engineering, selling, and administrative expenses, attributed to increased investments in research and development, higher sales commissions due to revenue growth, and elevated administrative and corporate expenses aligned with overall business expansion. This is likely to have affected the company’s profitability.

What the Zacks Model Unveils for MtronPTI

Our proven model does not predict an earnings beat for MtronPTI for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.

Earnings ESP: MPTI has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

Fluor Corporation FLR reported third-quarter 2024 adjusted EPS of 51 cents, which missed the Zacks Consensus Estimate of 78 cents by 34.6%. The reported figure decreased 50% from an EPS of $1.02 a year ago.

Fluor’s quarterly revenues of $4.09 billion missed the consensus mark of $4.79 billion by 14.6%. The figure grew 3.3% from the year-ago quarter’s level of $3.96 billion.

KBR, Inc. KBR reported mixed third-quarter fiscal 2024 results, with adjusted earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

KBR’s quarterly results were backed by the benefits realized from the LinQuest acquisition and solid contributions from both the reportable businesses, given the increased demand trends for its services. Although high costs and expenses were headwinds, leverage from the increased top line aided the uptick.

Quanta Services Inc. PWR reported mixed results for the third quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same.

Quanta reported a strong quarter with double-digit growth across key financial metrics, a record backlog of $34 billion and $539.5 million in free cash flow. CEO Duke Austin attributed this growth to Quanta’s diverse portfolio, high demand, effective execution and an expanding market.

Zacks Investment Research

Fluor (FLR) came out with quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $1.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -34.62%. A quarter ago, it was expected that this engineering, construction and operations company would post earnings of $0.68 per share when it actually produced earnings of $0.85, delivering a surprise of 25%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Fluor, which belongs to the Zacks Engineering - R and D Services industry, posted revenues of $4.09 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 14.58%. This compares to year-ago revenues of $3.96 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Fluor shares have added about 50.5% since the beginning of the year versus the S&P 500's gain of 25.2%.

What's Next for Fluor?

While Fluor has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Fluor: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.89 on $5.01 billion in revenues for the coming quarter and $2.88 on $17.76 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Engineering - R and D Services is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, M-tron Industries, Inc. (MPTI), has yet to report results for the quarter ended September 2024.

This company is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -5.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

M-tron Industries, Inc.'s revenues are expected to be $12.2 million, up 12% from the year-ago quarter.

Zacks Investment Research

Quanta Services (PWR) came out with quarterly earnings of $2.72 per share, beating the Zacks Consensus Estimate of $2.66 per share. This compares to earnings of $2.24 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 2.26%. A quarter ago, it was expected that this specialty contractor for utility and energy companies would post earnings of $1.93 per share when it actually produced earnings of $1.90, delivering a surprise of -1.55%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Quanta Services, which belongs to the Zacks Engineering - R and D Services industry, posted revenues of $6.49 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.94%. This compares to year-ago revenues of $5.62 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Quanta Services shares have added about 44.4% since the beginning of the year versus the S&P 500's gain of 21.9%.

What's Next for Quanta Services?

While Quanta Services has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Quanta Services: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.65 on $6.65 billion in revenues for the coming quarter and $8.60 on $23.83 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Engineering - R and D Services is currently in the bottom 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

M-tron Industries, Inc. (MPTI), another stock in the same industry, has yet to report results for the quarter ended September 2024.

This company is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -5.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

M-tron Industries, Inc.'s revenues are expected to be $12.2 million, up 12% from the year-ago quarter.

Zacks Investment Research

Fluor Corporation FLR announced that the Hanford Tank Waste Operations & Closure, LLC joint venture (JV), including FLR and Amentum and led by BWX Technologies, Inc.’s subsidiary, received approval for a contract from the U.S. Department of Energy (DOE).

The JV received approval to begin the Hanford Integrated Tank Disposition Contract after the U.S. Court of Federal Claims dismissed a protest against this contract. The award has a 10-year ordering period for environmental management operations at the Hanford Site in Washington state. The estimated price ceiling for the contract is $45 billion.

FLR stock gained 1.6% in the after-hours trading session on Thursday, after the contract approval announcement.

Work Scope of FLR’s New Contract

The JV is expected to carry on several works encompassing the Hanford Integrated Tank Disposition Contract. The work scope includes the operation of the Hanford tank farm facilities, eventual operation of the Waste Treatment and Immobilization Plant and responsibility for other core functions such as project management, security and emergency services, business performance, and environment, safety, health and quality.

The share of earnings from this new contract will be recognized by Fluor through the equity method of accounting starting in the fourth quarter of 2024.

Fluor’s Growing Backlog Bodes Well

Fluor has been witnessing business prospects and a demand uptrend in various sectors including the chemicals sector, energy transition, fuel production, as well as mining and metals, and big data. This growing trend is reflected in the solid uptick in new awards and backlog value.

During the second quarter of 2024, the company secured new awards worth $3.1 billion. At the end of June 30, 2024, the consolidated backlog was $32.3 billion, up 27% from $29.4 billion a year ago. This substantial backlog underscores the continued strong demand for Fluor's services and the recognized value it brings to its clients. The company continues to witness strong demand for its services, pushing new award margins above its strategic segment margin range of 4-6%.

AECOM ACM has secured the program management services deal from the San Diego County Regional Airport Authority (Authority).

Per the deal, ACM will manage the $3.8 billion New Terminal 1 (NT1) program and modernize Terminal 2 East (T2E) at the San Diego International Airport (SAN). The scope of work includes a full range of program, project and construction management services and diversified specialized services.

NT1, the airport’s largest project to date, will feature a new on-site entrance road designed to offer travelers a quicker route to the airport. Additionally, new bike lanes and a pedestrian pathway will link the airport with nearby communities. NT1 also reserves space outside the terminals for a potential future connection to the region’s public transit system.

ACM has served the Authority for nearly two decades. Some of the major capital development projects at SAN include the "Green Build," a 494,000-square-foot, three-story expansion of Terminal 2 West (T2W); a new Federal Inspection Services facility to support increasing international flights; a consolidated rental car center; and a new parking plaza for T2E/W.

ACM’s Backlog Growth Raises Hope for the Future

AECOM has been experiencing strong growth across all its segments, with a solid backlog and robust pipeline visibility for upcoming quarters. Both state and local budgets are healthy, and private sector clients are making investments to restore capacity and adapt to water and energy transitions. Additionally, growth in the U.K. water market is expected to accelerate over the next five years, driven by an anticipated near doubling of AMP8 funding. In this area, ACM has substantial experience with most major water utilities involved.

The global infrastructure demand has been increasing, contributing to a rise in demand for ACM's services. This positive trend is reflected in the company's backlog, which stood at $23.74 billion at the fiscal second-quarter end, up from $22.98 billion in the prior-year period. Of this, 54.8% represents contracted backlog growth, with the design business backlog increasing 6.3% to $22.29 billion, driven by a near-record win rate and strong end-market performance.

The company’s net service revenues (NSR) — which exclude subcontractor and other direct costs — have benefited from the strength in core sectors like transportation, water, and the environment. NSR for the fiscal second quarter increased 8% year over year, marking the 13th consecutive quarter of accelerating organic growth.