Construction Partners, Inc. (ROAD) Misses Q4 EPS by 2c, Revenues Miss; Offers FY20 Revenue Guidance Above Consensus

Construction Partners, Inc. (NASDAQ: ROAD) reported Q4 EPS of $0.32, $0.02 worse than the analyst estimate of $0.34. Revenue for the quarter came in at $237.7 million versus the consensus estimate of $248.5 million.

Charles E. Owens, the Company’s President and Chief Executive Officer, stated, “We are pleased with our fiscal year 2019 results, achieving double-digit growth for annual revenue, while increasing gross profit and adjusted EBITDA margin. Sustained demand across our local markets for road repair and maintenance projects, coupled with our acquisition of two hot-mix asphalt plants and favorable working conditions during the last six months of fiscal 2019, contributed to growth compared to 2018. We continue to see opportunities for growth across our 33 markets, in addition to opportunities for acquisitions.”

GUIDANCE:

Construction Partners, Inc. sees FY2020 revenue of $830-870 million, versus the consensus of $795.62 million.

The Company also announced its outlook for fiscal year 2020 with regard to revenue, net income and Adjusted EBITDA, as follows:

• Revenue of $830 million to $870 million, compared to $783.2 million actual in FY 2019
• Net income of $39 million to $44 million, compared to $43.1 million actual in FY 2019
• Adjusted EBITDA (2) of $94 million to $102 million, compared to $92.3 million actual in FY 2019

Ned N. Fleming, III, the Company’s Executive Chairman, stated, “Our outlook ranges for fiscal 2020 are consistent with our strategy of delivering controlled, profitable growth. Positive tailwinds persist in our markets based on deteriorating road conditions in the rapidly growing southeastern states in which we operate, creating continued demand for our services. We remain excited about the continued prospects for growth.”

For earnings history and earnings-related data on Construction Partners, Inc. (ROAD) click here.

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