Pike Electric misses by $0.03, misses on revs

Reports Q3 (Mar) earnings of $0.13 per share, $0.03 worse than the First Call consensus of $0.16; revenues fell 14.8% year/year to $131.4 mln vs the $140.9 mln consensus. Gross profit for Q3 was $20.8 million, or 15.8% of revenue, compared to $27.5 million, or 17.8% of revenue, for 3Q07. The 200 basis point decline in gross margin y/y was primarily due to a lower contribution from higher margin storm restoration revenues, higher fuel prices, and the impact of lower revenue on direct overhead costs. Co now expects fiscal year 2008 core powerline revenues to range from $500 -510 mln revised from its prior expectation of $520-530 mln. This revision is primarily due to higher than anticipated storm work in Q3, which temporarily diverted some core powerline revenues, and a slower than expected recovery in customer spending. Co continues to expect total gross profit margins for Y08 to be in the range of 16-17% and general and administrative expenses to be in a range of 7-8% of revenues. Storm restoration revenues are unpredictable from year-to-year, and are entirely dependant on the weather. Co's fiscal year 2008 core powerline revenue guidance assumes no storm work for the balance of the year. Any significant variations in storm restoration revenues may result in y/y fluctuations in core powerline revenue growth.