On September 4, Argan rose 5.09% in regular trading, trading at approximately $432.00/share, with turnover of $166 million. The rally follows the company's fiscal second-quarter earnings report released after market close on September 2, which massively exceeded Wall Street expectations on both revenue and profit metrics.
For the quarter ended July 31, Argan reported revenue of $384 million, up 61.5% year-over-year, far surpassing the consensus estimate of approximately $301 million. Adjusted earnings per share came in at $3.76, representing a 50.4% year-over-year increase and beating the FactSet consensus of $2.64 by roughly 42%. This marks the second consecutive quarter of significant outperformance, following fiscal Q1 results that also topped estimates by a wide margin with EPS of $3.24 versus the $2.31 consensus.
The fundamental backdrop remains robust, with project backlog of approximately $2.9 billion, an expanded share repurchase program, and a maintained quarterly dividend of $0.50 per share. Earlier this year, JPMorgan upgraded Argan to Overweight from Neutral and raised its price target to $550 from $370, citing strong contract wins and revenue visibility.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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