Shares of Construction Partners (ROAD) plummeted 8.13% in Thursday's intraday trading session following the release of its fiscal fourth-quarter earnings report. The sharp decline came as the infrastructure construction company's earnings per share (EPS) fell short of analyst expectations, overshadowing a slight revenue beat and reiterated full-year guidance.
Construction Partners reported Q4 net income of $1.02 per diluted share, up from $0.56 a year earlier but below the $1.09 to $1.10 per share analysts had forecasted. This earnings miss appears to be the primary driver behind the stock's significant drop. Revenue for the quarter ended September 30 came in at $899.85 million, slightly above the analyst consensus of $892.71 million to $897.8 million, representing a substantial 67.21% increase from $538.16 million in the same quarter last year.
Despite the market's negative reaction, Construction Partners maintained its positive outlook for fiscal 2026, projecting revenue between $3.40 billion and $3.50 billion. The company also reported a record project backlog of $3.03 billion at the fiscal year-end, indicating a strong pipeline of future work. However, investors seem to be focusing on the near-term earnings miss rather than the long-term growth prospects, leading to the substantial decline in the stock price. This reaction highlights the market's sensitivity to earnings performance, even when other financial metrics show promise.
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