Arcosa (NYSE:ACA) Releases Earnings Results, Misses Estimates By $0.06 EPS

Key Points

• Arcosa missed quarterly expectations: EPS came in at $1.13, $0.06 below consensus, while revenue of $658.7 million fell short of estimates of $687.5 million.
• Shares edged higher: Arcosa stock rose 0.1% to $145.35, near its 12-month high of $146.92, despite the earnings and revenue miss.
• Analyst sentiment remains cautious: The stock carries a consensus “Hold” rating with a $138.33 price target, while the company paid a quarterly dividend of $0.05 per share.

Arcosa (NYSE:ACA - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $1.13 EPS for the quarter, missing analysts' consensus estimates of $1.19 by ($0.06), FiscalAI reports. Arcosa had a return on equity of 8.52% and a net margin of 7.88%.The firm had revenue of $658.70 million during the quarter, compared to analysts' expectations of $687.50 million.

Arcosa Stock Up 0.1%

Shares of NYSE ACA traded up $0.13 during trading on Wednesday, reaching $145.35. 580,196 shares of the stock were exchanged, compared to its average volume of 454,499. The business's 50-day moving average price is $138.73 and its 200 day moving average price is $124.20. Arcosa has a twelve month low of $84.70 and a twelve month high of $146.92. The company has a quick ratio of 1.60, a current ratio of 2.32 and a debt-to-equity ratio of 0.57. The company has a market capitalization of $7.14 billion, a price-to-earnings ratio of 32.09, a price-to-earnings-growth ratio of 2.14 and a beta of 1.05.

Arcosa Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Wednesday, July 15th were given a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date of this dividend was Wednesday, July 15th. Arcosa's payout ratio is presently 4.42%.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on ACA. Citigroup downgraded shares of Arcosa to a "hold" rating in a research report on Tuesday, June 23rd. Weiss Ratings lowered shares of Arcosa from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, May 11th. Barclays raised their target price on shares of Arcosa from $115.00 to $140.00 and gave the company an "overweight" rating in a research note on Monday, May 4th. Oppenheimer downgraded Arcosa from an "outperform" rating to a "market perform" rating in a report on Friday, June 26th. Finally, Zacks Research raised Arcosa from a "strong sell" rating to a "hold" rating in a research report on Monday, June 22nd. Two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Arcosa presently has a consensus rating of "Hold" and a consensus price target of $138.33.

Hedge Funds Weigh In On Arcosa

A number of institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC increased its position in shares of Arcosa by 20.6% during the first quarter. AQR Capital Management LLC now owns 8,326 shares of the company's stock worth $642,000 after acquiring an additional 1,423 shares during the last quarter. United Services Automobile Association purchased a new position in Arcosa in the first quarter valued at about $256,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Arcosa by 11.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 143,244 shares of the company's stock valued at $11,047,000 after purchasing an additional 14,723 shares in the last quarter. Jane Street Group LLC grew its stake in Arcosa by 193.8% during the 1st quarter. Jane Street Group LLC now owns 105,243 shares of the company's stock valued at $8,116,000 after purchasing an additional 69,427 shares in the last quarter. Finally, American Century Companies Inc. increased its holdings in Arcosa by 1.4% during the 2nd quarter. American Century Companies Inc. now owns 12,690 shares of the company's stock worth $1,100,000 after purchasing an additional 181 shares during the last quarter. Institutional investors and hedge funds own 90.66% of the company's stock.

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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