What to Note Ahead of Construction Partners' (ROAD) Q3 Earnings?
Construction Partners, Inc. ROAD is scheduled to report third-quarter fiscal 2023 results on Aug 2, before the opening bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 38.9% and 16.4%, respectively. On a year-over-year basis, the top line increased and the bottom line narrowed. Milder-than-normal winter weather and lower energy costs helped margins and fixed costs recover, ultimately aiding net loss improvement.
This vertically integrated civil infrastructure company surpassed earnings estimates in three of the trailing four quarters and lagged on one occasion, with a surprise of 30.8% on average.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for Construction Partners’ fiscal third-quarter earnings has remained stable at 34 cents per share in the past 60 days. The estimated figure indicates a 47.8% increase on a year-over-year basis.
Construction Partners, Inc. Price and EPS Surprise
Construction Partners, Inc. price-eps-surprise | Construction Partners, Inc. Quote
The consensus estimate for revenues is pegged at $433.81 million, indicating a year-over-year rise of 14.1%.
Factors to Note
Construction Partners’ revenues are expected to have increased in the fiscal third quarter, given healthy funding programs at the state and federal levels and a solid commercial market across the geographies served.
Solid demand for infrastructure services throughout end markets in private and public sectors, consistent execution of its business model and its growth strategy are likely to have contributed to the quarterly revenues.
Also, organic and inorganic growth opportunities in the attractive Southeastern U.S. road construction/repair market are expected to have helped the company generate higher revenues in the to-be-reported quarter. ROAD is also expected to have reported solid wins and shorter-duration projects, generating higher turnover in backlogs during the fiscal third quarter.
Although supply-chain disruptions and labor woes have eased, the cost of certain raw materials used to produce HMA and other items and other operational expenses is still a pressing concern for ROAD. These are likely to have put pressure on the to-be-reported quarter’s bottom line.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Construction Partners this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
Construction Partners currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ROAD has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Louisiana-Pacific Corporation LPX — a Nashville, TN-based home construction supplier — topped earnings estimates in three of the trailing four quarters and missed once, the average being 98.2%.
Louisiana-Pacific is likely to beat expectations when it reports second-quarter 2023 results on Aug 2, before the opening bell. This Zacks Rank #3 company has an Earnings ESP of +5.54%.
AECOM ACM — a Los Angeles, CA-based company — beat earnings estimates in all the last four quarters, the average surprise being 4.8%. The company is poised to beat expectations when it reports third-quarter fiscal 2023 results on Aug 7, after market close.
It has a Zacks Rank #2 and an Earnings ESP of +1.05% at present. The Zacks Consensus Estimate for AECOM’s fiscal third-quarter earnings is pegged at 95 cents per share, implying growth of 10.5% from the year-ago reported figure.
Howmet Aerospace Inc. HWM has an impressive earnings surprise history, having outperformed the consensus estimate in two of the preceding four quarters while matching in the other two quarters, the average beat being 4.2%.
HWM is likely to beat expectations when it reports second-quarter 2023 results on Aug 1, before the opening bell. This Zacks Rank #2 company has an Earnings ESP of +1.99%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AECOM (ACM) : Free Stock Analysis Report
Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report
Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report
