Aegion (AEGN) Earns “Sell” Rating from Zacks Investment Research

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Aegion (NASDAQ:AEGN)‘s stock had its “sell” rating restated by Zacks Investment Research in a research report issued on Monday.

According to Zacks, “Aegion’s third-quarter earnings and revenues missed the Zacks Consensus Estimate by 4.3% and 1.2%, respectively. However, earnings grew 43% from the prior-year figure owing to the improvement in restructured businesses and better-than-expected execution of the coating services business within the Corrosion Protection unit. However, revenues declined 0.6%, mainly due to an unfavorable project mix in North America CIPP operations along with top-line weakness in cathodic protection business. Also, its Infrastructure Solutions revenues (accounting for 45.8% of revenues) were down 10.6%. Aegion’s consolidated backlog came in at $671 million as of Sep 30,  down year over year. Again, it’s trimmed EPS outlook for 2018 poses concern. Shares of Aegion have underperformed its industry in the past year. Earnings estimates for 2018 have remained stable over the past 60 days, limiting the stock's upside potential.”

Several other research analysts have also commented on AEGN. BidaskClub lowered Aegion from a “hold” rating to a “sell” rating in a research report on Thursday, July 19th. ValuEngine lowered Aegion from a “buy” rating to a “hold” rating in a research report on Friday, July 20th. Stifel Nicolaus raised their price target on Aegion from $28.00 to $29.00 and gave the stock a “hold” rating in a research report on Monday, August 6th. Finally, Canaccord Genuity lowered Aegion from a “buy” rating to a “hold” rating in a research report on Thursday, November 1st. Two analysts have rated the stock with a sell rating and five have given a hold rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $28.33.

Shares of AEGN traded down $0.29 during midday trading on Monday, hitting $19.45. 188,100 shares of the stock were exchanged, compared to its average volume of 120,373. Aegion has a 52-week low of $18.26 and a 52-week high of $28.19. The firm has a market cap of $637.88 million, a P/E ratio of 18.88, a P/E/G ratio of 1.70 and a beta of 2.01. The company has a quick ratio of 1.89, a current ratio of 2.17 and a debt-to-equity ratio of 0.57.

Aegion (NASDAQ:AEGN) last released its quarterly earnings results on Tuesday, October 30th. The construction company reported $0.45 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.02). Aegion had a positive return on equity of 7.42% and a negative net margin of 0.55%. The firm had revenue of $339.68 million for the quarter, compared to analysts’ expectations of $344.25 million. Sell-side analysts expect that Aegion will post 1.16 earnings per share for the current year.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. boosted its position in shares of Aegion by 3.6% during the third quarter. BlackRock Inc. now owns 4,633,230 shares of the construction company’s stock worth $117,594,000 after buying an additional 161,864 shares during the period. Northern Trust Corp boosted its holdings in Aegion by 0.5% in the second quarter. Northern Trust Corp now owns 968,673 shares of the construction company’s stock valued at $24,943,000 after purchasing an additional 4,539 shares during the period. Royce & Associates LP boosted its holdings in Aegion by 5.7% in the second quarter. Royce & Associates LP now owns 729,894 shares of the construction company’s stock valued at $18,795,000 after purchasing an additional 39,348 shares during the period. Renaissance Technologies LLC boosted its holdings in Aegion by 22.2% in the second quarter. Renaissance Technologies LLC now owns 495,000 shares of the construction company’s stock valued at $12,746,000 after purchasing an additional 89,800 shares during the period. Finally, Foundry Partners LLC boosted its holdings in Aegion by 8.3% in the third quarter. Foundry Partners LLC now owns 457,189 shares of the construction company’s stock valued at $11,603,000 after purchasing an additional 34,994 shares during the period. Institutional investors and hedge funds own 92.24% of the company’s stock.

Aegion Company Profile

Aegion Corporation provides technologies to maintain, rehabilitate, and strengthen infrastructure worldwide. It operates through three segments: Infrastructure Solutions, Corrosion Protection, and Energy Services. The company offers various solutions for rehabilitating and maintaining aging or deteriorating infrastructure; protecting new infrastructure from corrosion; and providing integrated professional services in engineering, procurement, construction, maintenance, and turnaround services for oil companies.

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