Perini shares climb as 1Q earnings beat estimates

NEW YORK—Shares of Perini Corp. surged on Thursday after the civil and commercial construction contractor said its first-quarter profit rose 11 percent, partly because of strong results in its building segment.

The stock gained $4.29, or 11 percent, to $43.18.

Late Wednesday, Perini said its income for the quarter ended March 31 climbed to $25.2 million, or 91 cents per share, from $22.7 million, or 84 cents per share, in the same period last year.

Revenue rose 27 percent to $1.26 billion from $9.9 million in the year-ago quarter.

Analysts expected a profit of 87 cents per share on revenue of $1.27 billion for the Framingham, Mass., company, according to a poll by Thomson Financial.

In addition, Perini reaffirmed its 2008 outlook of earnings between $3.50 per share and $3.75 per share on revenue between $5.5 billion and $5.9 billion. The guidance is conditioned on the completion of a pending merger between Perini and Tutor-Saliba Corp., said Kenneth R. Burk, vice president and chief financial officer.

The deal is expected to close in the third quarter, the company said.

For 2009, the company predicts earnings between $4 and $4.20 per share on revenues of between $7.3 billion and $7.8 billion.

Analysts expect 2008 earnings of $3.73 per share on $5.16 billion in revenue and 2009 earnings of $3.85 per share on $5.46 billion in revenue, on average.

In a note to investors, BMO Capital Markets analyst Avram Fisher highlighted the company's lucrative pending contract awards and its control over costs. Fisher reiterated his "Market Perform" rating and $47 price target, which implies he expects the stock to gain about 21 percent.

Separately, Morgan Joseph analyst Richard Paget was similarly upbeat on the company's pending awards. He maintained his estimates but added he could revise his figures higher later in the year if the company continues to earn contracts and report strong results.

Paget rates Perini "Buy" and assigns a $75 price target, meaning he sees a 93 percent increase in the stock's value.