What's in Store for Construction Partners (ROAD) Q4 Earnings?
Construction Partners, Inc. ROAD is scheduled to report its fourth-quarter fiscal 2023 results on Nov 29, before the opening bell.
In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 28.1% and 4.4%, respectively. Also, the bottom and the top lines grew 78.3% and 10.9% year over year.
Construction Partners’ earnings topped the consensus mark in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 10.6%.
How are Estimates Placed?
The Zacks Consensus Estimate for the company's fiscal fourth-quarter earnings per share has increased to 52 cents from 49 cents over the past 60 days. The estimated figure indicates an impressive 108% surge from the prior-year quarter’s reported earnings of 25 cents per share.
Construction Partners, Inc. Price and EPS Surprise
Construction Partners, Inc. price-eps-surprise | Construction Partners, Inc. Quote
The consensus mark for revenues is pegged at $464.3 million, suggesting growth of 18.1% from the year-ago reported figure of $393.1 million.
Key Factors to Consider
The to-be-reported quarter’s revenues of Construction Partners are likely to have increased year over year attributable to solid backlog growth, driven by strong demand momentum and notable contributions from its accretive acquisitions, which have been completed subsequent to June 30, 2022. Furthermore, the company’s profitable business initiatives, including a local market dynamic approach, along with its focus on short-duration and low-risk projects are also likely to have benefited it to continue its growth momentum in this uncertain market.
Moreover, per the company, its strong operational performance across its footprint mirrors its high project demand and healthy project margins. Normalization of the company’s business contributes to this uptrend.
Although uncertain macroeconomic conditions are risks to the company’s margins, the aforementioned tailwinds have been more than offsetting its adverse impacts. Also, during the to-be-reported quarter, Construction Partners’ margins are quite likely to have been benefited from low energy costs as well as a stable cost environment.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Construction Partners this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: ROAD has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently sports a Zacks Rank of 1.
Key Picks
Here are some better ranked stocks that investors may consider from the Construction sector.
Acuity Brands, Inc. AYI currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AYI delivered a trailing four-quarter earnings surprise of 12%, on average. The stock has declined 3.6% in the past year. The Zacks Consensus Estimate for AYI’s fiscal 2024 sales and earnings per share (EPS) indicates a decline of 3% and 4.7%, respectively, from a year ago.
M-tron Industries, Inc. MPTI currently sports a Zacks Rank of 1. MPTI delivered a trailing four-quarter earnings surprise of 35.6%, on average. It has surged 247.8% in the past year.
The Zacks Consensus Estimate for MPTI’s 2023 sales and EPS indicates growth of 30.6% and 156.7%, respectively, from the previous year.
EMCOR Group, Inc. EME presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 25%, on average. Shares of EME have rallied 41.7% in the past year.
The Zacks Consensus Estimate for EME’s 2023 sales and EPS indicates an improvement of 12% and 52.8%, respectively, from the prior-year levels.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
M-tron Industries, Inc. (MPTI) : Free Stock Analysis Report
