What Happened?
Shares of building systems company Limbach (NASDAQ:LMB) jumped 17.1% in the afternoon session after the company reported strong third-quarter earnings. Revenue beat, which is a good start. In addition, Limbach blew past analysts' EBITDA expectations. The sales improvement was mostly driven by a 41% growth in the Owner Direct Relationships (ODR) Segment. This is due to the company's shift towards working directly with building owners, which results in higher-margin projects. The company is also expanding its footprint following the acquisition of Kent Island Mechanical to grow market share in the Washington, D.C. area.
Looking ahead, the company lifted its full-year revenue guidance. Additionally, its full-year EBITDA guidance exceeded Wall Street's estimates. Overall, we think this was a very good quarter with few blemishes.
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What The Market Is Telling Us
Limbach’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. But moves this big are rare even for Limbach and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 9.1% on the news that the company reported second-quarter earnings results. Limbach blew past analysts' EPS expectations. Its full-year EBITDA guidance also exceeded Wall Street's estimates. On the other hand, its revenue unfortunately missed. Zooming out, we think this was still a decent quarter.
Limbach is up 109% since the beginning of the year, and at $92.06 per share, has set a new 52-week high. Investors who bought $1,000 worth of Limbach’s shares 5 years ago would now be looking at an investment worth $19,219.
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