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According to Koyfin data, the company reported adjusted earnings of $0.25 per share for the fiscal first quarter, topping the average analysts’ estimate of $0.15 per share.
Construction Partners (ROAD) stock rose 7.6% on Friday as the company raised its fiscal 2025 revenue projection after topping quarterly earnings estimates.
According to Koyfin data, the company reported adjusted earnings of $0.25 per share for the fiscal first quarter, which beat the average analysts’ estimate of $0.15 per share.
The infrastructure firm’s first-quarter revenue jumped by 41.6% to $561.6 million, compared with the Street estimate of $518 million.
The company attributed the jump in revenue to acquisitions and growth in its existing markets.
However, Construction Partners incurred a net loss of $3.1 million, or $0.06 per share, during the reported quarter, primarily due to acquisition-related costs. This compares with a net income of $9.8 million, or $0.19 per share, in the year-ago quarter.
CEO Fred Smith said the company continues to see favorable industrial indicators relative to customer demand for publicly funded and commercial projects in fiscal 2025.
“We operate in well-funded and growing Sunbelt states representing some of the fasting growing areas in the country that are supported by healthy state and federal funding programs,” Smith added.
The company raised its 2025 revenue forecast to $2.66 billion to $2.74 billion, from $2.48 billion to $2.58 billion, projected earlier.
Retail sentiment on Stocktwits remained in the ‘neutral’ (47/100) territory, albeit with a lower score than a day ago, while retail chatter was ‘low.’
Over the past year, Construction Partners stock has gained 87.4%.
In January, the stock was hit by a sell-off following a report by short seller Spruce Point, which estimated a 35% to 50% potential long-term downside and market underperformance risk.
The company refuted the allegations later.
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