Construction Partners (NASDAQ:ROAD) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Shares of Construction Partners gapped up after the quarter, opening at $142.76 (prior close $131.36) and last trading near $147.53 — roughly a 12.1% intraday rise following the report.
• The company beat expectations, reporting $0.18 EPS versus analysts' -$0.05 consensus and revenue of $769.2 million (vs. $678.46M expected), with revenue up about 34.6% year‑over‑year.
• Wall Street shows a consensus rating of “Moderate Buy” with a $132.40 target while institutional investors own about 94.83% of the stock and several large funds recently increased their stakes.

Construction Partners, Inc. (NASDAQ:ROAD - Get Free Report)'s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $131.36, but opened at $142.76. Construction Partners shares last traded at $147.5330, with a volume of 288,448 shares changing hands.

The company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of ($0.05) by $0.23. The company had revenue of $769.20 million for the quarter, compared to analysts' expectations of $678.46 million. Construction Partners had a net margin of 3.99% and a return on equity of 15.26%. Construction Partners's revenue for the quarter was up 34.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.08 earnings per share.

Wall Street Analysts Forecast Growth

ROAD has been the topic of several analyst reports. Robert W. Baird set a $142.00 target price on shares of Construction Partners in a report on Friday, February 6th. Raymond James Financial reissued a "strong-buy" rating and set a $140.00 target price on shares of Construction Partners in a research report on Monday, April 27th. Zacks Research lowered Construction Partners from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 27th. DA Davidson raised their target price on Construction Partners from $120.00 to $130.00 and gave the stock a "neutral" rating in a research report on Friday, February 6th. Finally, Weiss Ratings raised Construction Partners from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, April 21st. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $132.40.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Geneva Capital Management LLC grew its stake in Construction Partners by 0.3% during the 4th quarter. Geneva Capital Management LLC now owns 1,821,134 shares of the company's stock worth $197,684,000 after buying an additional 6,163 shares during the last quarter. Invesco Ltd. grew its stake in Construction Partners by 23.7% during the 4th quarter. Invesco Ltd. now owns 1,481,914 shares of the company's stock worth $160,862,000 after buying an additional 284,082 shares during the last quarter. Geode Capital Management LLC grew its stake in Construction Partners by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 1,163,923 shares of the company's stock worth $126,364,000 after buying an additional 4,118 shares during the last quarter. State Street Corp lifted its position in Construction Partners by 4.7% during the 2nd quarter. State Street Corp now owns 1,112,231 shares of the company's stock worth $118,208,000 after acquiring an additional 49,898 shares during the period. Finally, First Trust Advisors LP lifted its position in Construction Partners by 33.2% during the 3rd quarter. First Trust Advisors LP now owns 1,059,566 shares of the company's stock worth $134,565,000 after acquiring an additional 264,069 shares during the period. Hedge funds and other institutional investors own 94.83% of the company's stock.

Construction Partners Stock Up 12.1%

The business has a 50-day simple moving average of $119.17 and a two-hundred day simple moving average of $115.97. The company has a debt-to-equity ratio of 1.76, a quick ratio of 1.26 and a current ratio of 1.59. The company has a market capitalization of $8.32 billion, a price-to-earnings ratio of 67.00, a PEG ratio of 1.20 and a beta of 0.92.

About Construction Partners

Construction Partners, Inc NASDAQ: ROAD is a specialty contractor and infrastructure solutions provider focused on road building, paving, site development and aggregate production. The company delivers a comprehensive suite of civil construction services, including roadway paving and milling, site grading and preparation, stormwater and utility installation, and full-scale asphalt plant operations. By integrating materials production with contracting capabilities, the firm aims to streamline project delivery and maintain quality control across its contracting and materials businesses.

At the heart of Construction Partners' operations are its network of asphalt plants, quarries and aggregate production facilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.