Director BEST RHYS J’s purchase of 1,500 shares at $79.84 each reflects confidence in Arcosa’s future.
Arcosa’s Q4 earnings miss with earnings of $0.46 per share against the expected $0.79, marking a -41.77% surprise.
The company’s strategic acquisition of Stavola Holding Corporation’s construction materials business for $1.2 billion aims to strengthen its market position.
Arcosa, Inc. (NYSE: ACA) is a prominent player in the infrastructure sector, providing a range of products and solutions. The company recently made headlines when BEST RHYS J, a director, purchased 1,500 shares of ACA’s common stock at $79.84 each on March 5, 2025. This acquisition increased his total holdings to 58,195 shares, reflecting confidence in the company’s future prospects.
Arcosa’s recent financial performance has been mixed. In its fourth quarter of 2024, the company reported earnings of $0.46 per share, which fell short of the Zacks Consensus Estimate of $0.79 per share. This represents a significant earnings surprise of -41.77%. However, in the previous quarter, Arcosa exceeded expectations with earnings of $0.91 per share, surpassing the anticipated $0.78, resulting in a positive surprise of 16.67%.
Despite the earnings miss, Arcosa’s revenue for the quarter ending December 2024 was $666.2 million, an increase from $582.2 million a year ago. However, this figure still missed the consensus estimate by 4.03%. Over the past four quarters, Arcosa has exceeded consensus revenue estimates twice, indicating some volatility in its financial performance.
A notable development for Arcosa was its acquisition of Stavola Holding Corporation’s construction materials business for $1.2 billion on October 1, 2024. This strategic move is expected to bolster Arcosa’s position in the building products industry, particularly in aggregates, which is Stavola’s area of expertise.
Arcosa’s financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 42.8, indicating investor willingness to pay a premium for its earnings. Its price-to-sales ratio is about 1.56, and the enterprise value to sales ratio is 2.15, suggesting a slightly higher total value compared to sales. With a debt-to-equity ratio of 0.70 and a current ratio of 1.85, Arcosa maintains a moderate level of debt and a strong ability to cover short-term liabilities.
