ACA Earnings Prediction
The chart below shows how ACA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ACA sees a -0.62% change in stock price 10 days leading up to the earnings, and a +3.82% change 10 days following the report. On the earnings day itself, the stock moves by +0.30%. This data can give you a slight idea of what to expect for the next quarter's release.
ACA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
640.40M
8.23%
-3.66%
Gross Margin
21.35%
17.96%
2.84%
Operating Margin
10.29%
31.59%
9.58%
Net Margin
2.59%
-56.83%
-62.24%
EPS
0.34
-53.42%
-63.83%
No Data Available
ACA Earnings Analysis
Arcosa, Inc. Common Stock Corporation (ACA.N) Earnings Conference Call
Positive
Free Cash Flow Generation: 1. Strong Free Cash Flow: Arcosa generated free cash flow of $107 million in Q3 2024, reflecting effective working capital management and prioritization of cash generation.
EBITDA Margin Expansion: 2. Significant EBITDA Growth: Adjusted EBITDA increased by 39% year-over-year, with margins expanding by 330 basis points to 18.4%, driven by organic growth and recent acquisitions.
Revenue Surge: 3. Revenue Increase: Consolidated revenues rose by 14% compared to the previous year, showcasing strong operational performance and the positive impact of strategic initiatives.
Acquisition Integration Success: 4. Successful Acquisition Integration: The acquisition of Stavola, the largest in Arcosa's history, is expected to enhance growth and margin expansion, contributing to a revised adjusted EBITDA guidance reflecting a 34% year-over-year increase.
Debt Management Improvement: 5. Improved Debt Metrics: Arcosa ended the quarter with a net debt to adjusted EBITDA ratio of 1.2x, and pro forma for Stavola, net leverage is projected to decrease to 3.4x, demonstrating a commitment to prudent deleveraging.
Negative
Freight Revenue Decline: 1. Decline in Freight Revenues: Freight revenues reduced segment revenues by approximately 3%, negatively impacting overall revenue growth in the Construction Products segment.
Steel Components Divestiture Loss: 2. Loss from Steel Components Divestiture: The divestiture of the steel components business resulted in a pretax loss of $23 million, which was excluded from adjusted segment EBITDA, indicating a significant financial setback.
Flat Revenue Performance: 3. Flat Year-over-Year Revenues: Construction Products segment revenues were roughly flat year-over-year, reflecting challenges in volume growth despite pricing gains.
Decline in Organic Volumes: 4. Lower Organic Volumes: Organic volumes in the aggregates business were down high single-digits in the third quarter, contributing to overall volume weakness in the Construction segment.
Rising Interest Expense Impact: 5. Increased Interest Expense: Projected fourth quarter net interest expense is expected to rise by approximately $22 million compared to the third quarter, impacting cash flow and financial flexibility.
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ACA Earning Call Sentiment
Arcosa, Inc. (ACA) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ACA.N
-3.87%Positive
The earnings call highlights strong financial performance with a 14% revenue growth and a 39% increase in adjusted EBITDA. The acquisition of Stavola is expected to enhance margins, and the raised guidance for 2024 EBITDA suggests optimism. Despite some uncertainties in demand outlook and interest expense increases, management's focus on margins and cash flow generation is positive. The Q&A session indicates confidence in future growth, particularly in construction and wind markets. The market cap suggests moderate volatility, leading to a positive outlook for the stock price over the next two weeks.
