Civil infrastructure company Construction Partners (NASDAQ: ROAD) will be reporting earnings this Friday before market open. Here’s what to look for.
Construction Partners beat analysts’ revenue expectations last quarter, reporting revenues of $769.2 million, up 34.6% year on year. It was an incredible quarter for the company, with a 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 for active Edge members.
This quarter, the market is expecting Construction Partners’s revenue to grow 21.6% year on year, slowing from the 50.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Construction Partners has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Construction Partners’s peers in the construction and maintenance services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Tutor Perini delivered year-on-year revenue growth of 19.2%, beating analysts’ expectations by 4.4%, and MYR Group reported revenues up 20.1%, topping estimates by 8.3%. MYR Group traded up 2.7% following the results.
Read our full analysis of Tutor Perini’s results here and MYR Group’s results here.
There has been positive sentiment among investors in the construction and maintenance services segment, with share prices up 2.3% on average over the last month. Construction Partners is up 3.3% during the same time and is heading into earnings with an average analyst price target of $145 (compared to the current share price of $107.18).
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