According to Benzinga Pro, during Q4, EMCOR Group (NYSE:EME) earned $101.67 million, a 1.93% increase from the preceding quarter. EMCOR Group also posted a total of $2.64 billion in sales, a 4.68% increase since Q3. EMCOR Group earned $99.74 million, and sales totaled $2.52 billion in Q3.
What Is Return On Invested Capital?
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, EMCOR Group posted an ROIC of 5.69%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, EMCOR Group posted an ROIC of 5.69%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
For EMCOR Group, the positive return on invested capital ratio of 5.69% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.
Analyst Predictions
EMCOR Group reported Q4 earnings per share at $1.89/share, which beat analyst predictions of $1.88/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
