Overview

• U.S. contractor's fiscal Q2 revenue rose 21.5% yr/yr on higher activity across segments

• Company posted first profitable fiscal Q2 in 17 years, net income $216,000 vs loss yr ago

• Adjusted EBITDA improved to $4.7 mln from a loss a year ago

Outlook

• Company did not provide specific guidance for future quarters or the full year

Result Drivers

• SEGMENT DEMAND - Co said increased demand and activity across all business segments drove revenue growth

• GAS & PETROLEUM PROJECTS - Revenue from Gas & Petroleum Distribution more than doubled from prior-year quarter due to new projects awarded and increased activity

• GROSS MARGIN IMPROVEMENT - Higher gross margin attributed to greater fixed cost leverage from increased revenue and more favorable sales mix

Company press release: ID:nPn66MK3la

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$93.20 mln	$80.90 mln (1 Analyst)
Q2 Adjusted EBITDA		$4.70 mln

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Energy Services Of America Corp is $21.00, about 21.3% above its May 8 closing price of $17.31

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 13 three months ago

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