ICA to report moderate Q3 gains - analyst

By
Wednesday, October 22, 2014

Mexican construction giant ICA is expected to report modest Q3 results on Friday, including a 5.3% increase in revenue to 8.80bn pesos (US$650mn), according to a Banco Monex report.

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The construction division is expected to have outperformed other units in the quarter with an 8% growth in revenue and a 5% growth in Ebitda. The concessions division, however, is expected to post a 23% drop in revenue and 16% drop in Ebitda, said the report.

ICA is expected to report a positive backlog of 30.5bn pesos, potentially including its recently won 2.57bn-peso contract for construction of the Churubusco drainage tunnel in Mexico state.

While the company's leverage is expected to be lower than the prior-year-period, it could still be higher than that reported in 1H14 due to the growing number of projects and currency fluctuation.

ICA's 4Q results will be key in determining whether the company will meet its annual guidance of 11% growth in revenue and 5% growth in Ebitda, according to Banco Monex.