Upcoming AWS Coverage on Dycom Industries Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 13, 2016 / Active Wall St. announces its post-earnings coverage on Argan, Inc. (NYSE: AGX). The Company reported its third quarter fiscal 2016 (Q3 FY16) earnings on December 06, 2016. The Rockville, Maryland-based company's total revenue rose 54% y-o-y; while net income surged 67% y-o-y. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Argan's competitors within the Heavy Construction space, Dycom Industries, Inc. (NYSE: DY), reported on November 21, 2016, its results for the first quarter ended October 29, 2016. AWS will be initiating a research report on Dycom Industries in the coming days.

Today, AWS is promoting its earnings coverage on AGX; touching on DY. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=AGX

http://www.activewallst.com/registration-3/?symbol=DY

Earnings Reviewed

During Q3 FY16, Argan's reported record total revenue of $175.44 million compared to $113.97 million in Q3 FY15. The company attributed this rise in revenue to Gemma Power Systems (GPS) ramping up work on four large gas-fired power plants, with the final completion of the twoPanda power plants. However, the total revenue numbers for the reported quarter fell short of consensus market estimates by $1.25 million.

The builder of energy plants reported net income attributed to Argan's stockholders of $18.07 million, or $1.16 per diluted share, in Q3 FY16, compared to $10.81 million, or $0.72 per diluted share, in the year ago same quarter. Furthermore, the company's net income attributed to Argan's stockholders beat market consensus estimates of $0.75 per diluted share.

Rainer Bosselmann, Chairman and Chief Executive Officer, stated:

"We were pleased to follow up our record second quarter with our next best quarter in Company history. These sustained results could not have been achieved without the operational excellence of our employees."

Operating Metrics

The company's Q3 FY16 gross profit was $36.58 million compared to $26.26 million in the previous year's comparable quarter. The company stated that the increase in gross profit was primarily due to increased revenue, but partially offset by lower margins at the non-Panda power plant projects and two new subsidiaries namely, Atlantic Projects Company (APC) and The Roberts Company (TRC). However, gross margin as a percentage of total revenue for Q3 FY16 fell to 20.8% from 23.0% in Q3 FY15.

In Q3 FY16, the company reported selling, general, and administrative expenses of $9.85 million, versus $5.59 million in Q3 FY15. The company's income from operations rose to $26.73 million in Q3 FY16, from $20.67 million, in Q3 FY15. Furthermore, EBITDA attributed to Argan's stockholders surged to $27.02 million in Q3 FY16 from $18.24 million in the prior year's same quarter.

Segment-wise

During Q3 FY16, Power Industry Services revenue improved by 35% to $151.09 million from $111.59 million in the previous year's comparable period. During the quarter, segment revenues represented approximately 86% of consolidated revenues versus 98% of consolidated revenues in Q3 FY15.

Industrial Fabrication and Field Services' revenue came in at $21.55 million in Q3 FY16 as the company acquired TRC on December 04, 2015. Furthermore, revenue from Telecommunications Infrastructure Services rose approximately 18% y-o-y to $2.80 million in Q3 FY16 from $2.38 million in the last year's same quarter.

Balance Sheet

For the nine months ended on October 31, 2016, Argan generated $185.31 million as net cash from operating activities compared to net cash used in operating activities amounting to $46.39 million in the last year comparable period. As on October 31, 2016, the company had $170.78 million in cash and cash equivalents compared to a balance of $160.91million as on January 31, 2016. The company did not report any long-term debt in its books of accounts as the end of both the periods.

Stock Performance

On Monday, the stock closed the trading session at $71.80, slightly down 0.28% from its previous closing price of $72.00. A total volume of 319.77 thousand shares have exchanged hands, which was higher than the 3-month average volume of 249.95 thousand shares. Argan's stock price rallied 22.11% in the last month, 38.91% in the past three months, and 73.43% in the previous six months. Furthermore, since the start of the year, shares of the company have skyrocketed 121.60%. The stock is trading at a PE ratio of 19.34 and has a dividend yield of 0.97%.

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SOURCE: Active Wall Street