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What to Note Ahead of Construction Partners (ROAD) Q4 Earnings

Construction Partners, Inc. ROAD is scheduled to report fourth-quarter fiscal 2022 results on Nov 22, before the opening bell.

In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 109.1% and 19.7%, respectively. Both metrics increased 27.8% and 45.3% year over year, respectively. The upside was mainly backed by solid organic growth and acquisition benefits.

This vertically-integrated civil infrastructure company surpassed earnings estimates in just one of the trailing four quarters, meeting once and lagging on the other two occasions.

Earnings & Revenue Expectations

The Zacks Consensus Estimate for Construction Partners’ fiscal fourth-quarter earnings has remained stable at 25 cents per share in the past 30 days. The estimated figure indicates a 66.7% increase on a year-over-year basis. The consensus estimate for revenues is pegged at $360.34 million, indicating a year-over-year rise of 29.1%.

Construction Partners, Inc. Price and EPS Surprise

Construction Partners, Inc. price-eps-surprise | Construction Partners, Inc. Quote

Factors to Note

Construction Partners’ revenues and earnings are expected to have increased in the fiscal fourth quarter. The upside can be attributed to solid demand for infrastructure services throughout end markets in private and public sectors, consistent execution of its business model and a growth strategy that defies labor, inflation and supply-chain challenges.

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. Backed by solid wins and shorter-duration projects generating higher turnover in backlogs, ROAD expects strong earnings for the fiscal fourth quarter.

Yet, macroeconomic uncertainties like supply chain challenges, tight labor and higher fuel costs are likely to have put pressure on the to-be-reported quarter’s performance.

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ROAD currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Some Recent Construction Releases

EMCOR Group, Inc. EME reported impressive third-quarter 2022 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year.

Given the solid momentum of the business activity amid a challenging macroeconomic environment, the company has lifted its revenues and earnings per share guidance for 2022.

MasTec, Inc. MTZ reported mixed third-quarter 2022 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same.

MasTec expects fourth-quarter revenues of $2.9 billion. Adjusted EBITDA is estimated to be $257 million. The adjusted EBITDA margin is expected to be 8.8%. The company expects to report adjusted earnings per share of $1.00 for the quarter.

AECOM ACM reported impressive fourth-quarter fiscal 2022 results. Its earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.

ACM’s strong performance was backed by accelerating organic growth, strong profitability and disciplined capital allocation.

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