We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Building Products-Miscellaneous Industry is currently in the bottom 19% of 246 Zacks industries, and Arcosa (ACA - Free Report) may be a stock to avoid in particular. Having a Zacks Rank #5 (Strong Sell), Arcosa lands the Bear of the Day.
Compounding tougher market conditions, the manufacturer of infrastructure-related products and services is facing operational issues. Notably, the Indiana Department of Environmental Management (IDEM) has warned its aggregates division (Arcosa Lightweight) of potential emissions violations.
Arcosa’s Subpar Q4 Results
Reporting fourth-quarter results in early February, Arcosa’s Q4 sales rose 14% to $666.2 million but missed estimates of $694.2 million by 4%.
More concerning, Arcosa reported a net income loss of $7.7 million compared to a profit of $27.1 million in Q4 2023. Adjusted Q4 EPS was at $0.46, although this dropped from $0.68 a year ago and missed expectations of $0.79 by 42%.
Image Source: Zacks Investment Research
Declining EPS Revisions & P/E Valuation
Taking away from Arcosa’s appealing growth trajectory is that fiscal 2025 EPS estimates have dropped 13% over the last 30 days from $4.81 to $4.56. Unfortunately, a trend of declining earnings estimate revisions could continue following the company’s eye-catching earnings miss.
Image Source: Zacks Investment Research
Furthermore, while Arcosa’s stock trades at a reasonable 20.1X forward earnings multiple, it's noteworthy that this is above the industry average of 16.8X with some of its notable peers in the space being CRH plc (CRH - Free Report) and TopBuild (BLD - Free Report) .
Image Source: Zacks Investment Research
Bottom Line
As of now, it's unclear if Arcosa can fulfill its lofty earnings expectations with double-digit EPS growth expected in FY25. Unless of course, earnings estimate revisions keep declining, which would signal more downside risk for ACA shares.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bear of the Day: Arcosa (ACA)
The Zacks Building Products-Miscellaneous Industry is currently in the bottom 19% of 246 Zacks industries, and Arcosa (ACA - Free Report) may be a stock to avoid in particular. Having a Zacks Rank #5 (Strong Sell), Arcosa lands the Bear of the Day.
Compounding tougher market conditions, the manufacturer of infrastructure-related products and services is facing operational issues. Notably, the Indiana Department of Environmental Management (IDEM) has warned its aggregates division (Arcosa Lightweight) of potential emissions violations.
Arcosa’s Subpar Q4 Results
Reporting fourth-quarter results in early February, Arcosa’s Q4 sales rose 14% to $666.2 million but missed estimates of $694.2 million by 4%.
More concerning, Arcosa reported a net income loss of $7.7 million compared to a profit of $27.1 million in Q4 2023. Adjusted Q4 EPS was at $0.46, although this dropped from $0.68 a year ago and missed expectations of $0.79 by 42%.
Image Source: Zacks Investment Research
Declining EPS Revisions & P/E Valuation
Taking away from Arcosa’s appealing growth trajectory is that fiscal 2025 EPS estimates have dropped 13% over the last 30 days from $4.81 to $4.56. Unfortunately, a trend of declining earnings estimate revisions could continue following the company’s eye-catching earnings miss.
Image Source: Zacks Investment Research
Furthermore, while Arcosa’s stock trades at a reasonable 20.1X forward earnings multiple, it's noteworthy that this is above the industry average of 16.8X with some of its notable peers in the space being CRH plc (CRH - Free Report) and TopBuild (BLD - Free Report) .
Image Source: Zacks Investment Research
Bottom Line
As of now, it's unclear if Arcosa can fulfill its lofty earnings expectations with double-digit EPS growth expected in FY25. Unless of course, earnings estimate revisions keep declining, which would signal more downside risk for ACA shares.