Construction Partners, Inc. (NASDAQ:ROAD) is set to release its quarterly earnings with an estimated EPS of $0.14 and projected revenue of $517.5 million.
The company has outperformed earnings expectations over the last four quarters, with an average surprise of 32.2%.
ROAD maintains a strong financial position with a low debt-to-equity ratio of 0.12 and a current ratio of 1.54.
Construction Partners, Inc. (NASDAQ:ROAD) is a prominent player in the construction industry, focusing on infrastructure projects such as highways and bridges. The company is set to release its quarterly earnings on February 7, 2025, with Wall Street estimating an earnings per share (EPS) of $0.14 and projected revenue of $517.5 million. ROAD’s competitors include companies like Granite Construction and Sterling Construction.
ROAD’s upcoming earnings report is anticipated to highlight strengths in backlog, acquisitions, and strategic investments. In the previous quarter, the company exceeded the Zacks Consensus Estimate for both EPS and revenues, with a 1.8% and 0.1% beat, respectively. Despite a year-over-year EPS decrease of 1.7%, ROAD experienced a 13.3% increase in revenues, showcasing its ability to grow sales even when earnings decline.
The Zacks Consensus Estimate for ROAD’s EPS currently stands at $0.14, reflecting a projected decrease of 26.3% from the previous year. Despite this, ROAD has consistently surpassed earnings expectations over the last four quarters, delivering an average surprise of 32.2%. This track record suggests that the company may continue to outperform expectations, even amid challenges.
ROAD’s financial metrics provide insight into its valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 60.80, indicating that investors are willing to pay $60.80 for every dollar of earnings. The price-to-sales ratio is about 2.49, suggesting that the stock is valued at 2.49 times its sales. These ratios reflect investor confidence in ROAD’s future growth prospects.
ROAD maintains a strong financial position with a low debt-to-equity ratio of 0.12, indicating limited reliance on debt financing. The current ratio of 1.54 suggests that the company has sufficient liquidity to cover its short-term liabilities. However, challenges such as integration risks, rising interest costs, and labor constraints may impact ROAD’s financial performance in the upcoming quarter.
