KeyCorp Predicts Weaker Earnings for Primoris Services

Key Points

• KeyCorp lowered its FY2027 EPS estimate for Primoris Services to $5.09 from $5.87, while keeping a Sector Weight rating on the stock.
• Primoris recently missed quarterly expectations, reporting EPS of $0.59 versus $0.87 expected and revenue of $1.56 billion versus $1.73 billion anticipated.
• Analyst sentiment remains mixed: several firms still have Buy/Outperform ratings, but price targets have been cut and the stock has been pressured by lower guidance and execution concerns.

Primoris Services Corporation (NYSE:PRIM - Free Report) - Equities researchers at KeyCorp decreased their FY2027 earnings per share estimates for Primoris Services in a note issued to investors on Monday, June 22nd. KeyCorp analyst S. Jain now expects that the company will post earnings per share of $5.09 for the year, down from their prior forecast of $5.87. KeyCorp has a "Sector Weight" rating on the stock. The consensus estimate for Primoris Services' current full-year earnings is $4.55 per share.

Primoris Services (NYSE:PRIM - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.59 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.87 by ($0.28). The firm had revenue of $1.56 billion during the quarter, compared to analysts' expectations of $1.73 billion. Primoris Services had a return on equity of 16.48% and a net margin of 3.31%.Primoris Services's revenue for the quarter was down 5.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.98 earnings per share. Primoris Services has set its FY 2026 guidance at 4.800-5.000 EPS.

Other analysts have also issued research reports about the company. Mizuho cut their target price on Primoris Services from $135.00 to $117.00 and set an "outperform" rating for the company in a research note on Tuesday. Needham & Company LLC lowered their price objective on shares of Primoris Services from $205.00 to $188.00 and set a "buy" rating for the company in a report on Friday, May 8th. Wolfe Research restated an "outperform" rating and issued a $149.00 price objective on shares of Primoris Services in a report on Monday, June 15th. Guggenheim reaffirmed a "buy" rating and issued a $162.00 price objective on shares of Primoris Services in a research note on Tuesday. Finally, UBS Group reduced their target price on shares of Primoris Services from $212.00 to $186.00 and set a "buy" rating on the stock in a report on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $148.33.

Primoris Services Stock Performance

Shares of NYSE PRIM opened at $92.33 on Thursday. The stock's 50-day moving average is $127.66 and its 200 day moving average is $137.91. The stock has a market cap of $5.01 billion, a price-to-earnings ratio of 20.34 and a beta of 1.36. Primoris Services has a 1-year low of $65.00 and a 1-year high of $205.50. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.24.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Nordea Investment Management AB purchased a new position in shares of Primoris Services during the 4th quarter worth approximately $7,181,000. New York State Teachers Retirement System lifted its stake in shares of Primoris Services by 327.8% in the 4th quarter. New York State Teachers Retirement System now owns 20,892 shares of the company's stock valued at $2,594,000 after purchasing an additional 16,008 shares during the period. Principal Financial Group Inc. lifted its stake in shares of Primoris Services by 509.6% in the 4th quarter. Principal Financial Group Inc. now owns 336,713 shares of the company's stock valued at $41,800,000 after purchasing an additional 281,482 shares during the period. Massachusetts Financial Services Co. MA boosted its position in shares of Primoris Services by 2,338.5% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 314,426 shares of the company's stock valued at $39,033,000 after purchasing an additional 301,532 shares in the last quarter. Finally, UBS Group AG boosted its position in shares of Primoris Services by 2.4% during the fourth quarter. UBS Group AG now owns 638,876 shares of the company's stock valued at $79,310,000 after purchasing an additional 15,112 shares in the last quarter. 91.82% of the stock is currently owned by institutional investors.

Insider Transactions at Primoris Services

In other news, Director David Lee King sold 20,000 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $119.09, for a total transaction of $2,381,800.00. Following the transaction, the director directly owned 14,941 shares of the company's stock, valued at approximately $1,779,323.69. The trade was a 57.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider John M. Perisich sold 29,707 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $127.86, for a total value of $3,798,337.02. Following the transaction, the insider owned 27,574 shares of the company's stock, valued at approximately $3,525,611.64. This represents a 51.86% decrease in their position. The SEC filing for this sale provides additional information. 1.10% of the stock is owned by insiders.

Primoris Services Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be issued a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Tuesday, June 30th. Primoris Services's payout ratio is currently 7.05%.

Key Headlines Impacting Primoris Services

Here are the key news stories impacting Primoris Services this week:

• Positive Sentiment: Guggenheim reiterated a Buy rating and a $162 price target, suggesting meaningful upside if execution improves.
• Neutral Sentiment: KeyCorp kept a Sector Weight rating but lowered FY2027 EPS estimates to $5.09 from $5.87, reflecting a more cautious longer-term outlook.
• Neutral Sentiment: Mizuho cut its price target to $117 from $135 while keeping an Outperform rating, indicating analyst support remains but expectations have been reset.
• Negative Sentiment: Primoris cut FY2026 EPS guidance to $2.05-$2.60, a major reset from earlier expectations and a key reason for the stock’s decline.
• Negative Sentiment: The company disclosed additional challenges and cost overruns in its renewables projects, raising concerns about margins and project execution. Article Title
• Negative Sentiment: COO Jeremy Kinch abruptly departed, adding to uncertainty around operations and near-term leadership stability. Article Title
• Negative Sentiment: Multiple law firms launched securities-fraud investigations and shareholder alerts, which can further weigh on sentiment and amplify volatility.

About Primoris Services

Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation.

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