Michael Baker Corporation

Company Description

Michael Baker Corp., through is subsidiaries, provides engineering and energy services for the public and private sector worldwide. The company was founded in 1940 and has a market cap of $380 million.

Michael Baker Corp made its shareholders happy on May 7 when the company reported strong first-quarter results that were better than expected.

First-Quarter Results

Sales were down a marginal 2% to $170.6 million, but income came in strong, up to $7.8 million from $6.1 million last year, producing earnings of 88 cents per share, 16 cents ahead of the consensus.

Segment Results

The company said the slide in revenue came from a 16% drop in its energy segment. Helping to balance out the decline was solid revenue growth of 6% in the company's engineering segment.

Strong Balance Sheet

Michael Baker has done itself a favor by maintaining a strong balance sheet, with no long-term debt and cash reserves of $57 million.

Estimates Pop

Analysts boosted their earnings projections after word of the great quarter hit the Street. The current-year estimate is up 54 cents in the last 90 days to $3.39 per share, while the next-year estimate is up 60 cents to $3.69, a 9% earnings growth projection.

The Chart

Shares of BKR have been rallying since late April, advancing from $25 to a recent high above $43. Take a look at the nice trend below.