Looking Into MYR Group's Return On Invested Capital

Pulled from Benzinga Pro data, MYR Group MYRG showed a loss in earnings since Q1, totaling $19.68 million. Sales, on the other hand, increased by 11.23% to $708.11 million during Q2. In Q1, MYR Group earned $20.69 million and total sales reached $636.62 million.

Why Is ROIC Significant?

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 Q2, MYR Group posted an ROIC of 4.12%.

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 Q2, MYR Group posted an ROIC of 4.12%.

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 MYR Group, the positive return on invested capital ratio of 4.12% 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.

Upcoming Earnings Estimate

MYR Group reported Q2 earnings per share at $1.15/share, which did not meet analyst predictions of $1.15/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.