Aegion (AEGN) Rating Reiterated by Zacks Investment Research
Zacks Investment Research reiterated their sell rating on shares of Aegion (NASDAQ:AEGN) in a research note released on Monday morning.
According to Zacks, “Aegion’s third-quarter earnings and revenues missed the Zacks Consensus Estimate by 4.3% and 1.2%, respectively. However, earnings grew 43% from the prior-year figure owing to the improvement in restructured businesses and better-than-expected execution of the coating services business within the Corrosion Protection unit. However, revenues declined 0.6%, mainly due to an unfavorable project mix in North America CIPP operations along with top-line weakness in cathodic protection business. Also, its Infrastructure Solutions revenues (accounting for 45.8% of revenues) were down 10.6%. Aegion’s consolidated backlog came in at $671 million as of Sep 30, down year over year. Again, it’s trimmed EPS outlook for 2018 poses concern. Shares of Aegion have underperformed its industry in the past year. Earnings estimates for 2018 have remained stable over the past 60 days, limiting the stock's upside potential.”
A number of other brokerages have also recently weighed in on AEGN. BidaskClub cut shares of Aegion from a sell rating to a strong sell rating in a research note on Thursday, August 16th. ValuEngine cut shares of Aegion from a buy rating to a hold rating in a research note on Wednesday, September 19th. Canaccord Genuity cut shares of Aegion from a buy rating to a hold rating in a research note on Thursday, November 1st. Finally, Stifel Nicolaus lifted their price objective on shares of Aegion from $28.00 to $29.00 and gave the company a hold rating in a research note on Monday, August 6th. Three research analysts have rated the stock with a sell rating and four have issued a hold rating to the company’s stock. The company presently has an average rating of Hold and a consensus target price of $28.33.
Aegion (NASDAQ:AEGN) last issued its quarterly earnings data on Tuesday, October 30th. The construction company reported $0.45 earnings per share for the quarter, missing analysts’ consensus estimates of $0.47 by ($0.02). Aegion had a negative net margin of 0.55% and a positive return on equity of 7.42%. The company had revenue of $339.68 million for the quarter, compared to the consensus estimate of $344.25 million. On average, analysts anticipate that Aegion will post 1.16 earnings per share for the current year.
Several hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. raised its stake in shares of Aegion by 3.6% during the third quarter. BlackRock Inc. now owns 4,633,230 shares of the construction company’s stock valued at $117,594,000 after purchasing an additional 161,864 shares in the last quarter. Northern Trust Corp raised its position in Aegion by 0.5% in the second quarter. Northern Trust Corp now owns 968,673 shares of the construction company’s stock worth $24,943,000 after acquiring an additional 4,539 shares in the last quarter. Royce & Associates LP raised its position in Aegion by 5.7% in the second quarter. Royce & Associates LP now owns 729,894 shares of the construction company’s stock worth $18,795,000 after acquiring an additional 39,348 shares in the last quarter. Renaissance Technologies LLC raised its position in Aegion by 11.2% in the third quarter. Renaissance Technologies LLC now owns 550,400 shares of the construction company’s stock worth $13,969,000 after acquiring an additional 55,400 shares in the last quarter. Finally, Foundry Partners LLC raised its position in Aegion by 8.3% in the third quarter. Foundry Partners LLC now owns 457,189 shares of the construction company’s stock worth $11,603,000 after acquiring an additional 34,994 shares in the last quarter. Institutional investors and hedge funds own 92.75% of the company’s stock.
Aegion Company Profile
Aegion Corporation provides technologies to maintain, rehabilitate, and strengthen infrastructure worldwide. It operates through three segments: Infrastructure Solutions, Corrosion Protection, and Energy Services. The company offers various solutions for rehabilitating and maintaining aging or deteriorating infrastructure; protecting new infrastructure from corrosion; and providing integrated professional services in engineering, procurement, construction, maintenance, and turnaround services for oil companies.
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