ARCOSA Reports Financial Results for Fourth Quarter of FY2022.
March 19, 2023
Earnings Overview
ARCOSA ($NYSE:ACA) announced their fourth quarter financial results for FY2022 on December 31, 2022, with their fiscal year ending on February 23, 2023. Their total revenue was USD 154.6 million, a remarkable rise of 1580.4% compared to the previous year. Nonetheless, their net income reduced by 4.1%, standing at USD 500.3 million year-over-year.
Transcripts Simplified
In the fourth quarter of 2022, Construction Products segment revenues increased by 5% due to accelerated pricing in the quarter and the acquisition of RAMCO. The segment reported a 6% increase in adjusted EBITDA and a 20 basis point increase in margin. Natural Aggregates segment experienced broad pricing strength with average organic prices up more than 20%. Specialty Materials segment saw single digit top line growth and flat margins year-over-year, while Trend Shoring reported an 11% increase in revenues on higher volumes.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arcosa. More…
| Total Revenues | Net Income | Net Margin |
| 2.24k | 244.8 | 4.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arcosa. More…
| Operations | Investing | Financing |
| 174.3 | 90.7 | -177.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arcosa. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.34k | 1.16k | 45.09 |
Key Ratios Snapshot
Some of the financial key ratios for Arcosa are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.9% | 1.5% | 15.5% |
| FCF Margin | ROE | ROA |
| 1.6% | 10.3% | 6.5% |
Stock Price
The company’s stock opened at $57.5 and closed at the same price, up 0.8% from the previous closing price of 57.0. The company’s performance was driven by strong demand for the company’s products and services in the international markets. Moreover, new product launches in the domestic market also contributed to the growth in revenue. Looking ahead, the company expects revenue to grow in the upcoming quarters, driven by strong demand for its products and services both domestically and internationally. Live Quote…
Analysis
At GoodWhale, we’ve conducted an analysis of ARCOSA‘s wellbeing and based on our Star Chart, we’ve concluded that ARCOSA has a high health score of 9/10. This score reflects ARCOSA’s healthy cashflows and debt, and indicates that the company is able to ride out any crisis without the risk of bankruptcy. Additionally, we’ve determined that ARCOSA is strong in health and medium in asset, dividend, growth, and profitability. We’ve classified ARCOSA as a ‘cheetah’ – a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Based on this classification, investors who are risk-averse may not find ARCOSA as an attractive option. However, investors who are willing to take on some risk may find ARCOSA’s potential for higher returns appealing. More…
Peers
The company has a wide range of products and services that cover all aspects of infrastructure development, from design and construction to financing and operations. Arcosa Inc’s main competitors are Sterling Construction Co Inc, Trace SOP EOOD, BCPL Railway Infrastructure Ltd.
– Sterling Construction Co Inc ($NASDAQ:STRL)
Sterling Construction Co Inc is a construction company that specializes in the building of transportation infrastructure projects. The company has a market capitalization of $938.7 million as of 2022 and a return on equity of 19.94%. The company’s main operations are focused on the construction of highways, roads, bridges, and other transportation-related infrastructure projects.
– Trace SOP EOOD ($LTS:0M7W)
Trace SOP EOOD is a Bulgaria-based company engaged in the provision of software solutions. The Company offers a range of software products, including an accounting system, a human resources and payroll system, and a customer relationship management system, among others. Trace SOP EOOD has a market capitalization of 88.07M as of 2022, a return on equity of 3.34%. The company provides software solutions to businesses of all sizes, from small businesses to large enterprises. Trace SOP EOOD’s products are used by businesses in a variety of industries, including healthcare, manufacturing, retail, and government.
– BCPL Railway Infrastructure Ltd ($BSE:542057)
The market capitalization of BCPP Railway Infrastructure Ltd. as of 2022 was 729.99 million, with a return on equity of 9.17%. The company is engaged in the business of providing railway infrastructure services. It is a subsidiary of Bharat Cookware & Pressure Pipe Ltd.
Summary
ARCOSA‘s fourth quarter of FY2022 was a financial success, with total revenue of USD 154.6 million, representing a year-over-year growth of 1580.4%. Despite this impressive increase in revenue, their reported net income was USD 500.3 million, a 4.1% decrease from the prior year. Despite this slight decrease, ARCOSA still has a strong position in the market and investors can remain confident in their future performance. With continued growth in revenue, a sound financial strategy and a focus on creating long-term value for shareholders, ARCOSA is an attractive investment option for those looking for a reliable return on their investments.
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