Civil infrastructure company Construction Partners (NASDAQ: ROAD) will be announcing earnings results tomorrow before the bell. Here’s what to look for.
Construction Partners beat analysts’ revenue expectations by 9.7% last quarter, reporting revenues of $561.6 million, up 41.6% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA 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 50.7% year on year to $559.9 million, improving from the 14.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 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 missed Wall Street’s revenue estimates twice over the last two years.
Looking at Construction Partners’s peers in the construction and maintenance services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Tutor Perini delivered year-on-year revenue growth of 18.8%, beating analysts’ expectations by 16.7%, and Comfort Systems reported revenues up 19.1%, topping estimates by 4.2%. Comfort Systems traded up 5.6% following the results.
Read our full analysis of Tutor Perini’s results here and Comfort Systems’s results here.
There has been positive sentiment among investors in the construction and maintenance services segment, with share prices up 5.9% on average over the last month. Construction Partners is up 15.1% during the same time and is heading into earnings with an average analyst price target of $103.30 (compared to the current share price of $91.06).
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