Argan Stock Rises After Hours On Upbeat Q4 Revenue, Fuels Retail Optimism

Argan Inc (AGX) stock gained 12.7% in extended trading after the company’s fourth-quarter revenue topped Wall Street’s estimates.

The power sector-focused construction firm posted fourth-quarter revenue of $232.5 million, while analysts expected it to post $197.5 million, according to FinChat data.

The company reported a net income of $31.37 million, or $2.22 per share, for the three months ended Jan. 31, compared with $12 million, or $0.89 per share, a year earlier.

“We are energized by the strong pipeline of projects ahead as our industry prepares to establish the dependable energy resources necessary to power the reshoring of complex manufacturing operations, the growing amount of data centers, and the increased use of EV charging,” CEO David Watson said.

Its power industry services revenue grew by about 65% amid heightened quarterly construction activities at several projects, including a 405 megawatt (MW) Midwest solar project and a liquefied natural gas facility in Louisiana.

The company said its backlog rose to $1.4 billion on Jan. 31 and included full notices to proceed on a 700 MW combined-cycle natural gas project in the U.S. and a 300 MW biofuel power plant in Ireland.

After the fourth quarter, the company signed an engineering, procurement, and construction contract for a 1.2 gigawatt ultra-efficient natural gas-fired power plant project in Texas.

Retail sentiment on Stocktwits moved higher into the ‘extremely bullish’ (99/100) territory than a day ago, while retail chatter rose to ‘extremely high.’

One retail trader expected the stock to hit an all-time high.

Argan shares have fallen 16.8% year-to-date (YTD).

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