Arcosa (ACA) Tops Q1 EPS by 14c; On Track to Meet Full Year Rev/Adj.-EBITA Guidance

Arcosa (NYSE: ACA) reported Q1 EPS of $0.65, $0.14 better than the analyst estimate of $0.51. Revenue for the quarter came in at $488.2 million versus the consensus estimate of $479.22 million.

“Above all else, we are committed to the health and safety of our employees and the communities in which we operate,” noted Antonio Carrillo, President and Chief Executive Officer. “Our facilities are following the highest standards of health and safety, as we continue to produce products that are critical for North American infrastructure.”

Commenting on first quarter performance, Carrillo said, “Our first quarter results demonstrate Arcosa\'s outstanding earnings power when infrastructure markets are strong. Our Construction Products businesses had an excellent quarter, with the Cherry acquisition exceeding our expectations. Energy Equipment executed very well, and our Barge business continued to ramp up to meet higher levels of demand.

“Our experienced management team has led our businesses through numerous cycles. As the macroeconomic outlook changed during the quarter, we responded quickly to conserve cash by minimizing non-essential capital expenditures, tightening our working capital management around receivables, payables, and inventory, and reducing our SG&A spending. We will continue to take appropriate actions on our cost structure.

“We have entered this period of economic uncertainty in a strong financial position. We have low leverage, ample liquidity, and a lean operating model to respond quickly to changes in demand. Our strong balance sheet will help us manage through this crisis and seek disciplined acquisition opportunities, where appropriate. I am extremely proud of our team’s dedication and resilience during this challenging period.”

GUIDANCE:

As demonstrated by our strong first quarter performance, we were on track to meet our full year 2020 Revenue and Adjusted EBITDA guidance. In addition, our backlog businesses benefit from solid production visibility, and 2020 expectations for these businesses remain largely unchanged. However, given the macroeconomic uncertainty from COVID-19 and the unknown duration and impact of the slowdown, we are withdrawing our 2020 Revenue and Adjusted EBITDA guidance.

We will discuss our 2020 outlook in additional detail on our conference call tomorrow. The key points include

For earnings history and earnings-related data on Arcosa (ACA) click here.

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