Analysts Estimate Construction Partners (ROAD) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - Construction Partners (ROAD) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended March 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][2]. Financial Performance Expectations - The earnings report is scheduled for release on May 9, 2025, with expectations of a quarterly loss of $0.04 per share, indicating a year-over-year change of -100$540 million, reflecting a 45.4% increase from the previous year [3][2]. - The consensus EPS estimate has been revised down by 5.49% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a negative Earnings ESP of -150% for Construction Partners, suggesting that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, complicating predictions of an earnings beat [11][10]. - Despite the negative Earnings ESP, the company holds a Zacks Rank of 3, which indicates a hold position, making it challenging to predict a positive earnings surprise [11][10]. Historical Performance - In the last reported quarter, Construction Partners exceeded the consensus EPS estimate of $0.14 by delivering earnings of$0.25, resulting in a surprise of +78.57%. Over the past four quarters, the company has consistently beaten consensus EPS estimates [12][13]. Industry Comparison - Another company in the Zacks Building Products - Miscellaneous industry, Installed Building Products (IBP), is expected to report earnings of $2.18 per share for the same quarter, reflecting a year-over-year decline of -11.7$673.24 million, down 2.8% from the previous year [17]. - Installed Building Products has an unchanged consensus EPS estimate over the last 30 days, but it also has a negative Earnings ESP of -1.53% and a Zacks Rank of 4, indicating a sell position, which complicates predictions of an earnings beat [18].