Arcosa (NYSE:ACA) Announces Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Q1 earnings beat: Arcosa reported $0.51 EPS, beating estimates by $0.05, but revenue missed at $571.7M versus $639.5M; the company posted an ROE of 8.64% and a net margin of 7.23%.
• Shares surged: ACA jumped about 8.7% to $126.63 on heavy volume (515,648 shares vs. a 288,924 average), valuing the company at roughly $6.22B with a trailing P/E near 29.9.
• Dividend and sentiment: Arcosa declared a $0.05 quarterly dividend (annualized $0.20, ~0.2% yield; ex-dividend April 15), while institutional ownership is ~90.7% and analysts have a consensus rating of "Moderate Buy" with an average target of $120.00.

Arcosa (NYSE:ACA - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.51 earnings per share for the quarter, beating analysts' consensus estimates of $0.46 by $0.05, FiscalAI reports. Arcosa had a return on equity of 8.64% and a net margin of 7.23%.The firm had revenue of $571.70 million during the quarter, compared to analysts' expectations of $639.50 million.

Arcosa Trading Up 8.7%

ACA traded up $10.18 during trading on Thursday, reaching $126.63. 515,648 shares of the company's stock were exchanged, compared to its average volume of 288,924. The company's fifty day moving average price is $111.60 and its 200-day moving average price is $109.13. The firm has a market capitalization of $6.22 billion, a PE ratio of 29.87, a P/E/G ratio of 1.84 and a beta of 0.96. Arcosa has a fifty-two week low of $80.68 and a fifty-two week high of $131.00. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.35 and a current ratio of 2.20.

Arcosa Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Wednesday, April 15th will be paid a $0.05 dividend. The ex-dividend date of this dividend is Wednesday, April 15th. This represents a $0.20 dividend on an annualized basis and a yield of 0.2%. Arcosa's dividend payout ratio (DPR) is presently 4.72%.

Institutional Investors Weigh In On Arcosa

Institutional investors have recently made changes to their positions in the stock. Quarry LP boosted its holdings in Arcosa by 160.0% during the third quarter. Quarry LP now owns 403 shares of the company's stock worth $38,000 after buying an additional 248 shares during the last quarter. Danske Bank A S bought a new position in Arcosa during the third quarter worth about $66,000. EverSource Wealth Advisors LLC boosted its holdings in Arcosa by 77.2% during the second quarter. EverSource Wealth Advisors LLC now owns 739 shares of the company's stock worth $64,000 after buying an additional 322 shares during the last quarter. Kemnay Advisory Services Inc. bought a new position in Arcosa during the fourth quarter worth about $105,000. Finally, Banque Cantonale Vaudoise boosted its holdings in Arcosa by 200.5% during the third quarter. Banque Cantonale Vaudoise now owns 1,103 shares of the company's stock worth $103,000 after buying an additional 736 shares during the last quarter. 90.66% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Weiss Ratings raised Arcosa from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday. DA Davidson raised their price target on Arcosa from $120.00 to $125.00 and gave the company a "buy" rating in a report on Monday, March 2nd. Wall Street Zen downgraded Arcosa from a "buy" rating to a "hold" rating in a report on Sunday, March 1st. Texas Capital raised Arcosa to a "strong-buy" rating in a report on Friday, March 27th. Finally, Zacks Research downgraded Arcosa from a "hold" rating to a "strong sell" rating in a report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $120.00.

About Arcosa

Arcosa, Inc NYSE: ACA is a Dallas‐based industrial company that was formed through the spin‐off of Trinity Industries' construction products business in 2018. Since its inception, Arcosa has focused on the manufacture and sale of critical infrastructure components, serving a diverse set of end markets including transportation, construction and energy.

The company's Construction Products segment produces a broad range of highway safety products, such as guardrail systems, sign supports and crash cushions, as well as aggregates and ready‐mix concrete.

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