HOUSTON - IES Holdings, Inc. (NASDAQ: IESC), a leading provider of electrical and technology systems, has reported substantial financial growth for the third quarter ended June 30, 2024.
The company's revenue surged by 31% to $768 million, compared with $584 million in the same quarter of the previous fiscal year. Operating income for the quarter also saw a significant increase, rising to $90.2 million, a 163% jump from $34.3 million reported in the third quarter of fiscal 2023.
Net income attributable to IES for the quarter was $62.1 million, marking a 175% increase from $22.5 million in the prior year's quarter. Diluted earnings per share attributable to common stockholders reached $2.67, up from $0.81 in the same quarter of fiscal 2023.
The company's backlog, which is not a GAAP measure but is commonly used in the industry, stood at approximately $1.7 billion as of June 30, 2024. This represents future revenue from current contracts and is indicative of the company's ongoing growth trajectory.
IES's Chairman and Chief Executive Officer, Jeff Gendell, attributed the strong financial performance to strategic investments made to support business growth, particularly in the residential segment. The company's expansion into new markets and increased market share in existing ones have contributed to its success. The communications, infrastructure solutions, and commercial & industrial segments also benefited from robust demand, especially in the data center market.
The company's sound financial position enabled it to continue its share repurchase program, with $20.9 million in shares repurchased during the third quarter of fiscal 2024. Following the end of the quarter, the Board of Directors authorized a new $200 million share repurchase program.
IES Holdings' solid financial results are based on the company's ability to capitalize on strong market demand and execute its growth strategy effectively. This performance is expected to continue, with the company positioning itself for further growth in the remainder of the fiscal year and into fiscal 2025.
This news is based on a press release statement from IES Holdings, Inc.
InvestingPro Insights
IES Holdings, Inc. (NASDAQ: IESC) has demonstrated a robust financial performance, as reflected in the substantial growth figures for the third quarter of fiscal 2024. To further understand the company's financial health and investment potential, here are some key insights based on real-time data and InvestingPro Tips:
InvestingPro Data shows that IES Holdings has a Market Cap of approximately $2.93 billion, with a P/E Ratio of 21.46, which adjusts slightly to 21.27 for the last twelve months as of Q2 2024. This valuation metric is complemented by a PEG Ratio of just 0.19 for the same period, suggesting that the company's earnings growth rate is robust compared to its P/E ratio. Additionally, the company's Price / Book ratio stands at 5.47, reflecting a higher market valuation relative to its book value.
One of the InvestingPro Tips highlights that IES Holdings is trading at a low P/E ratio relative to its near-term earnings growth, which could be appealing to investors looking for growth at a reasonable price. The company also holds more cash than debt on its balance sheet, providing financial flexibility and stability.
For those considering a deeper analysis, there are over 10 additional InvestingPro Tips available for IES Holdings, Inc., which can be found on the InvestingPro platform. These tips offer insights into other aspects of the company's performance and valuation, such as its cash flow sufficiency to cover interest payments, high returns over various time frames, and the fact that it does not pay a dividend, potentially reinvesting profits to fuel further growth.
The strong quarterly performance, coupled with positive metrics from InvestingPro, indicates that IES Holdings is well-positioned to capitalize on market opportunities and sustain its growth momentum. Investors may find these insights valuable when evaluating the company's stock for their portfolios.
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