IES Holdings, Inc. (NASDAQ:IESC) stock edged higher in Monday’s premarket trading after the company reported fiscal third-quarter results that topped Wall Street estimates and announced a two-for-one stock split.
The stock closed up 30.27% in the previous session following the announcement.
Earnings Beat, Stock Split Announced
IES reported adjusted earnings of $6.70 per share, well above the consensus estimate of $4.83. Revenue increased 40% year over year to $1.243 billion, topping analysts’ expectations of $1.08 billion.
Operating income climbed 60% from a year earlier to $178.5 million.
The company ended the quarter with $77.3 million in cash, no debt and $310.6 million in marketable securities as of June 30.
Alongside the earnings report, IES said its board approved a two-for-one stock split in the form of a stock dividend on July 29.
Shareholders of record as of Aug. 14 will receive one additional share for each share owned. The additional shares will be distributed after the market closes on Aug. 21. The stock will retain its par value of 1 cent per share after the split.
Data Center Demand Fuels Growth
The ongoing data center buildout remained the key growth engine for IES during the quarter, driving strong demand across multiple business segments.
The Communications segment posted revenue of $453.1 million, up 51% year over year, driven by strong demand from data center, distribution center and high-tech manufacturing customers. Operating income increased to $83.6 million from $47.8 million.
Infrastructure Solutions revenue jumped 73% to $224.1 million as demand for custom-engineered data center products remained strong. Operating income rose to $53.4 million from $32.6 million.
Commercial & Industrial revenue more than doubled to $241.4 million, reflecting expanded data center capabilities and larger project execution. Operating income climbed to $54.2 million from $12.9 million.
The Residential segment was the only weak spot. Revenue fell 6% to $324.1 million as softer housing demand weighed on pricing and margins. Operating income declined to $16.3 million from $33.4 million a year earlier.
IESC Price Action: IES shares were up 1.40% at $754.99 during premarket trading on Monday. The stock is approaching its 52-week high of $803.99, according to Benzinga Pro data.
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