MYR’s Lighter-Than-Expected Bookings, Backlog Concerns Mitigated
Analysts at KeyBanc Capital Markets maintain their "buy" rating on MYR Group Inc (NASDAQ: MYRG).
MYRG posted its 4Q09 EPS ahead of the estimates and the consensus, driven by stronger-than-expected revenues. KeyBanc Capital Markets considers “the overall results as better than expected, with lighter than expected bookings and backlog as the only areas of weakness vs. our estimates.” “However, these concerns are mitigated somewhat by the higher sequential revenue and bookings progression, which we view as key positives,” the analysts say.
KeyBanc Capital Markets adds, “While margins were also slightly disappointing vs. our estimates on continued cost overruns, which we suspect came again on the transmission side, we assess that underlying margins appear to be in line with the recent run rate... MYRG’s free cash flows returned to positive territory in 4Q09 at $5.2 million, or $0.25 per share, which we view as a key positive.”
