Weaker customer spending leads to disappointing earnings and cautious outlook.

  • Centuri Holdings reported a second-quarter net income of $11.7 million, down from $18.5 million a year ago.
  • Sales fell to $672.1 million, missing market expectations of $760.5 million.
  • The company cited weaker customer spending in states like Illinois, California, and Maryland.
  • For 2024, Centuri expects revenue between $2.5 billion and $2.7 billion.
  • Adjusted EBITDA margin is forecasted to be between 9.0% and 9.6%.
  • Net capital expenditures are projected to be between $90 million and $99 million.

Centuri Holdings has reported a decline in its second-quarter profits, attributing the downturn to lower-than-expected customer spending across several states, including Illinois, California, and Maryland. The company’s net income for the quarter stood at $11.7 million, or 14 cents per share, a decrease from $18.5 million, or 24 cents per share, in the same quarter last year. This performance fell short of market expectations, which anticipated earnings of 15 cents per share. Additionally, sales dropped to $672.1 million from $805.8 million, missing the expected $760.5 million according to FactSet. Looking forward, Centuri Holdings has set its revenue guidance for 2024 between $2.5 billion and $2.7 billion. The company also forecasts an adjusted EBITDA margin of 9.0% to 9.6% and plans for net capital expenditures ranging from $90 million to $99 million.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Centuri Holdings’ second-quarter profit decline, the reasons behind it, and their forecast for the full year revenue and adjusted EBITDA margin. It also includes specific figures and expectations for net capital expenditures. The information is relevant to the main topic and does not contain any sensationalism or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about Centuri Holdings’ financial performance and outlook but lacks in-depth analysis or contextualization of the factors affecting the company’s profit decline. It also does not explore potential solutions or long-term implications.
Public Companies: Centuri Holdings ()
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Financial Relevance: Yes
Financial Markets Impacted: Centuri Holdings’ stock price
Financial Rating Justification: The article discusses Centuri Holdings’ financial performance, including a fall in profit and revised revenue targets, which can impact the company’s stock price and potentially affect investors.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article.

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