Argan (NYSE:AGX) will release its quarterly earnings report on Thursday, 2024-12-05. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Argan to report an earnings per share (EPS) of $1.26.
The market awaits Argan's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Performance in Previous Earnings
Last quarter the company beat EPS by $0.34, which was followed by a 26.04% increase in the share price the next day.
Here's a look at Argan's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 0.97 | 0.52 | 0.75 | 0.88 |
| EPS Actual | 1.31 | 0.58 | 0.89 | 0.40 |
| Price Change % | 26.0% | 10.0% | 21.0% | -12.0% |
Performance of Argan Shares
Shares of Argan were trading at $149.91 as of December 03. Over the last 52-week period, shares are up 248.36%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Views on Argan
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Argan.
Analysts have given Argan a total of 1 ratings, with the consensus rating being Neutral. The average one-year price target is $150.0, indicating a potential 0.06% upside.
Peer Ratings Comparison
The below comparison of the analyst ratings and average 1-year price targets of Centuri Holdings, Ameresco and MYR Group, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
The prevailing sentiment among analysts is an Underperform trajectory for Centuri Holdings, with an average 1-year price target of $18.0, implying a potential 87.99% downside. For Ameresco, analysts project an Buy trajectory, with an average 1-year price target of $38.5, indicating a potential 74.32% downside. MYR Group is maintaining an Buy status according to analysts, with an average 1-year price target of $138.33, indicating a potential 7.72% downside. Analysis Summary for Peers
The peer analysis summary offers a detailed examination of key metrics for Centuri Holdings, Ameresco and MYR Group, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Argan | Neutral | 60.61% | $31.11M | 6.05% |
| Centuri Holdings | Underperform | -7.08% | $75.79M | -0.69% |
| Ameresco | Buy | 49.45% | $77.14M | 1.90% |
| MYR Group | Buy | -5.47% | $77.29M | 1.74% |
Key Takeaway:
Argan is positioned in the middle among its peers for revenue growth, with one peer showing a significant decline. In terms of gross profit, Argan ranks at the bottom compared to its peers. However, Argan's return on equity is higher than two of its peers, placing it in a relatively better position. Overall, Argan's performance is mixed when compared to its peers in these key metrics.
Unveiling the Story Behind Argan
Argan Inc is a United States-base construction firm that conducts operations through its wholly-owned subsidiaries, GPS, APC, TRC and SMC. Through GPS and APC it provides a full range of engineering, procurement, construction, commissioning, maintenance, project development and technical consulting services to the power generation market, including the renewable energy sector, for a wide range of customers, including independent power project owners, public utilities, power plant heavy equipment suppliers and other commercial firms with power requirements in the U.S., Ireland and the U.K. It operates in three segments: Power Services, Industrial Services, and Telecom Services, out of which Power Services derive majority revenue.
Understanding the Numbers: Argan's Finances
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Over the 3 months period, Argan showcased positive performance, achieving a revenue growth rate of 60.61% as of 31 July, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 8.02%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Argan's ROE stands out, surpassing industry averages. With an impressive ROE of 6.05%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Argan's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.69%, the company showcases efficient use of assets and strong financial health.
Debt Management: Argan's debt-to-equity ratio is below the industry average at 0.01, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Argan visit their earnings calendar on our site.
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