Feb. 18 at 11:33 PM
$ESOA they had an unusually strong Q1 due almost exclusively to abnormally high gross margin in the high risk gas pipeline segment - this performance was itself due to two project starts that are inherently non-recurring. The core 'high margin' water biz gross margin is declining and the core electrical business (their largest revenue generator) is declining
Given they are headed into seasonally strong quarters one would expect any sort of offer like this to happen after future results - but the water comps are incredibly hard (esp given Tribute acq pumped the last 4 Qs) and electrical probably declines at an accelerated rate given the outsize exposure to the Electric Vehicle market. The gas line is inherently lumpy and bad quarters often follow the good.
So this offering makes perfect sense and good luck to anybody buying it into the next couple of quarters
