Construction Partners Analysts Raise Their Forecasts After Q1 Results
Portfolio Pulse from Avi Kapoor
Construction Partners, Inc. (NASDAQ:ROAD) exceeded Q1 earnings and sales expectations, reporting GAAP earnings of 19 cents per share and quarterly sales of $396.50 million. Despite this, shares fell 7% to close at $46.81. The company maintained its FY24 revenue outlook at $1.75 billion to $1.825 billion. Analysts from Baird and Stifel adjusted their price targets post-results, with Baird raising it to $50 but downgrading the stock to Neutral, and Stifel increasing it to $57 while maintaining a Buy rating.
February 12, 2024 | 2:33 pm
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NEUTRAL IMPACT
Construction Partners reported higher than expected Q1 earnings and sales, but shares fell 7%. The company maintains a positive FY24 revenue outlook. Analysts adjusted price targets, indicating mixed analyst sentiment.
Despite exceeding Q1 expectations, ROAD's share price fell, indicating market reaction may not align with fundamentals. The maintained FY24 outlook suggests stability, but the mixed analyst sentiment (Baird's downgrade vs. Stifel's price target increase) could lead to short-term price volatility. The importance is high due to the direct impact on investor perception and potential future performance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100