Core Viewpoint - Arcosa (ACA) reported quarterly earnings of $1.27 per share, exceeding the Zacks Consensus Estimate of $1.05 per share, and showing an increase from $0.91 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +20.95%, with the company previously expected to earn $0.29 per share but actually earning $0.49, resulting in a surprise of +68.97% [2] - Arcosa's revenues for the quarter were $736.9 million, which missed the Zacks Consensus Estimate by 2.09%, compared to $664.7 million in the same quarter last year [3] - Over the last four quarters, the company has surpassed consensus EPS estimates three times but has only topped revenue estimates once [3] Stock Performance - Arcosa shares have declined approximately 12.5% since the beginning of the year, while the S&P 500 has gained 7.9% [4] - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $778.3 million, and for the current fiscal year, it is $3.83 on revenues of $2.93 billion [8] - The outlook for the industry, specifically the Building Products - Miscellaneous sector, is currently in the bottom 37% of over 250 Zacks industries, which may impact stock performance [9]

Core Viewpoint - Arcosa (ACA) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [4][6]. Implications of the Upgrade - The upgrade for Arcosa suggests an improvement in the company's underlying business, which could lead to increased buying pressure and a rise in stock price [5][10]. - Over the past three months, the Zacks Consensus Estimate for Arcosa has increased by 1.5%, with expected earnings of $3.83 per share for the fiscal year ending December 2025, unchanged from the previous year [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].