Bird Construction (TSX:BDT)’s fourth quarter results beat the expectations of Stifel GMP, earning the company a repeat ‘Buy’ rating and upgraded price target.
Bird posted revenue of $657 million, topping both Stifel’s projection of $640 million and the FactSet consensus of $641 million and growing nearly 10% year-over-year. Adjusted earnings were $0.29 per share, also beating both Stifel ($0.27) and consensus ($0.24)
Analysts increased their price target to $13.50 from $13. Bird Construction (TSX:BDT) shares traded 0.6% lower at $9.27 Friday morning in Toronto.
Looking ahead, Bird expects mid to high single-digit revenue growth for in 2023, compared to Stifel’s new estimate of 7.8%.
“We believe Bird can continue its momentum in revenue growth given the strong backlog and could come on top of our estimates and consensus,” analysts said. “The company anticipates significant growth in EBITDA and EPS while delivering a dividend payout ratio lower than 40%, which suggests that EPS for 2023E would be at least $1.09 (39% payout ratio).”
At the end of the fourth quarter, Bird has a backlog of more than $2.6 billion. That number could go even higher, the firm said.
“[Bird] announced several significant new awards and contracts subsequent to the year-end, which would further increase the combined backlog,” analysts said. “Moreover, MSA accounts for $900 million (2021: $800 million) of the pending backlog, which continues to help in delivering a steady stream of revenue and profit.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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