Arcosa Inc (ACA) shares plummeted 5.07% during Wednesday's trading session, despite the company reporting better-than-expected first-quarter results. The significant drop suggests investors may be focusing on the year-over-year decline in profits rather than the revenue growth and earnings beat.
According to the earnings report released late Tuesday, Arcosa's Q1 adjusted earnings came in at $0.49 per diluted share, surpassing analyst expectations of $0.19. However, this represents a substantial decrease from $0.73 per share in the same quarter last year. Revenue for the quarter ended March 31 rose to $632 million, up from $598.6 million a year earlier and above the FactSet consensus estimate of $614.5 million.
While Arcosa maintained its full-year 2025 revenue guidance of $2.8 billion to $3.0 billion, in line with analyst expectations of $2.89 billion, the market's negative reaction suggests concerns about the company's profitability. The sharp decline in earnings per share, despite revenue growth, may be raising questions about Arcosa's ability to manage costs and maintain profit margins in the current economic environment.
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