Construction Partners Stock Plunges After Missing Q3 Estimates, Lowered FY21 Outlook

Construction Partners Inc ROAD reported third-quarter revenue growth of 20.6% year-over-year to $261.7 million, missing the consensus of $293.33 million.
EPS decreased to $0.18 from $0.30 in 3Q20, missing the consensus of $0.33.
The gross margin contracted by 300 bps to 14%.
The operating income decreased by 30.2% Y/Y to $14.26 million, and the margin contracted by 390 bps to 5.5%.
Construction Partners generated cash from operating activities year-to-date of $9.33 million, compared to $51.41 million a year ago.
Adjusted EBITDA declined by 9.3% Y/Y to $29.03 million, and margin contracted by 365 bps to 11.1%.
The company’s Project backlog was $822.9 million as of June 30, 2021, compared to $651.2 million a year ago and $773.3 million on March 31, 2021.
FY21 Outlook: Citing supply chain disruptions, Construction Partners lowered Revenue outlook to $940 million - $960 million (prior $950 million - $1 billion), versus the consensus of $975.04 million.
Adjusted EBITDA of $105.0 million - $108.3 million, (prior $109.0 million - $118.0 million).
Price Action: ROAD shares are trading lower by 7.11% at $30.85 on the last check Friday.

Momentum91.66

Growth84.85

Quality80.99

Value6.14

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