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Mar 30, 2024
NV5 Q1 2024 Earnings Report
NV5 delivered strong first quarter results, exceeding budget and analyst consensus for revenue and growing cash flows from operations.
Key Takeaways
NV5's first quarter results showed a 16% increase in gross revenues to $213.3 million and a 73% growth in cash flows from operations. The company raised its full-year 2024 guidance for gross revenues and EPS due to strong performance and the resolution of federal continuing resolution impacts.
Gross revenues grew by 16% to $213.3 million, and gross profit increased by 18% to $112.8 million.
Cash flows from operations increased by 73% to $19.6 million.
The company raised its full-year 2024 gross revenue guidance to between $937 million and $942 million and GAAP EPS guidance to between $2.87 and $2.93 per share.
NV5 is experiencing significant revenue growth in services for AI data centers and has become a leader in infrastructure design and commissioning for this market.
NV5
NV5
Forward Guidance
NV5 raised its full-year 2024 guidance for gross revenues and EPS.
Positive Outlook
- Gross revenue guidance for the full year 2024 is now between $937 million and $942 million, an increase from $930 million to $935 million.
- 2024 GAAP EPS guidance is now between $2.87 per share and $2.93 per share, an increase from $2.86 per share to $2.92 per share.
- 2024 Adjusted EPS guidance has been raised to $5.05 per share to $5.11 per share, an increase from $5.00 per share to $5.06 per share.
- The company is seeing tremendous revenue growth in services for artificial intelligence (AI) data centers.
- The M&A pipeline is strong, and the company anticipates completing additional acquisitions throughout 2024.
Challenges Ahead
- Intangible asset amortization has increased by $3.1 million compared to the first quarter of last year.
- Interest expense has increased by $2.6 million.
- Operating margins were affected by the continuing integration of the Axim and VIS acquisitions.
- First quarter net income was $0.4 million, compared to $5.9 million in the first quarter of last year.
- GAAP EPS was $0.03 per share compared to $0.39 per share in the first quarter of last year.