Looking Into Concrete Pumping Holdings's Return On Capital Employed
Portfolio Pulse from Benzinga Insights
Concrete Pumping Holdings (NASDAQ:BBCP) reported a 13.7% decrease in earnings from Q1, despite a 15.19% increase in sales to $107.79 million. The company posted a return on capital employed (ROCE) of 0.02% in Q2, indicating effective capital allocation. However, Q2 earnings per share of $0.09 did not meet analyst predictions of $0.1.
June 09, 2023 | 2:49 pm
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Concrete Pumping Holdings' Q2 earnings decreased by 13.7% despite a 15.19% increase in sales. The company's ROCE of 0.02% indicates effective capital allocation, but Q2 earnings per share missed analyst predictions.
The decrease in earnings despite an increase in sales suggests that the company may not be utilizing its capital as effectively as possible. However, the positive ROCE of 0.02% indicates that management is allocating capital effectively, which is a positive indicator for long-term success. The missed analyst predictions may have a neutral impact on the stock price in the short term, as the positive ROCE could offset the negative sentiment from the earnings miss.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100