Civil infrastructure company Construction Partners (NASDAQ:ROAD) will be reporting earnings tomorrow before the bell. Here’s what investors should know.
Construction Partners beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $517.8 million, up 22.7% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Construction Partners a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Construction Partners’s revenue to grow 13.3% year on year to $538.1 million, slowing from the 20.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Construction Partners has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.7% on average.
Looking at Construction Partners’s peers in the construction and maintenance services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Limbach delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 3.4%, and Primoris reported revenues up 7.8%, topping estimates by 3.5%. Limbach traded up 20.1% following the results while Primoris was also up 14.7%.
Read our full analysis of Limbach’s results here and Primoris’s results here.
There has been positive sentiment among investors in the construction and maintenance services segment, with share prices up 4.6% on average over the last month. Construction Partners is up 11% during the same time and is heading into earnings with an average analyst price target of $90.60 (compared to the current share price of $93).
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