Limbach Holdings Stock Jumps After Third-Quarter Beat

what happened

Limbach Holdings stock climbed roughly 19% to $59.54 in after-hours trading after third-quarter results beat Wall Street forecasts, Dow Jones Newswires reported. During the regular session the shares had risen 6.4% to close at $49.92, though they were still down 36% for the year.

The building systems firm posted net income of $9.5 million, or 79 cents per share, up from $8.8 million, or 73 cents, a year earlier. Excluding certain one-time items, adjusted earnings reached $1.37 per share, versus the $1.21 that analysts polled by FactSet had expected. Revenue climbed to $230.5 million from $184.6 million a year earlier, comfortably above the $218.6 million analysts had penciled in.

Chief Executive Michael McCann credited better customer activity and a return to organic growth in the owner-direct business. He said some project timing issues the company had flagged earlier this year are starting to ease. Limbach reaffirmed its full-year guidance for revenue and adjusted EBITDA, while saying it is now tracking toward the upper end of those ranges.

why it matters

A beat on both profit and sales, together with reaffirmed annual guidance, can improve sentiment around a stock that has lost more than a third of its value this year. Management's remarks on easing project delays point to a steadier pipeline ahead, although the after-hours move reflects only the initial market reaction to the figures.

market impact

Limbach Holdings: results above forecasts support the shares after the sharp year-to-date decline

• ▲Limbach Holdings shares pressure up — quarterly profit and revenue beat analyst estimates and guidance was reaffirmed

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