Pulled from Benzinga Pro data, Primoris Services (NASDAQ:PRIM) showed a loss in earnings since Q3, totaling $41.50 million. Sales, on the other hand, increased by 3.52% to $1.33 billion during Q4. In Q3, Primoris Services earned $43.04 million and total sales reached $1.28 billion.

What Is ROCE?

Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q4, Primoris Services posted an ROCE of 0.04%.

Keep in mind, while ROCE is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For Primoris Services, the positive return on capital employed ratio of 0.04% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Analyst Predictions

Primoris Services reported Q4 earnings per share at $0.93/share, which beat analyst predictions of $0.72/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.