Overview
- Shares, which plunged about 50% Wednesday, remained volatile into Friday trading and the single-day drop erased roughly $5.5 billion in market value.
- Primoris missed first-quarter expectations with adjusted earnings of 59 cents per share versus 84 cents forecast and revenue of $1.56 billion versus $1.73 billion expected, as operating income fell to $24.4 million from $70.4 million a year earlier.
- The company cut its full-year adjusted earnings outlook to $4.80–$5.00 per share from $5.80–$6.00, pointing to weaker profitability in its energy work.
- CEO Koti Vadlamudi blamed higher costs and execution problems on several renewables projects, citing redesigns, labor challenges, sequencing mistakes, and bad weather, while saying most other projects are tracking in line or better.
- The fallout now includes a Hagens Berman investigation into the company’s disclosures, and banks such as Wells Fargo, Needham, KeyBanc, and Roth trimmed price targets as they reassessed earnings and execution risk.