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North American Construction (NOA) Lags Q4 Earnings Estimates
NOANorth American Construction Group(NOA) ZACKS·2025-03-20 01:40

Core Viewpoint - North American Construction (NOA) reported quarterly earnings of 0.71pershare,missingtheZacksConsensusEstimateof0.71 per share, missing the Zacks Consensus Estimate of 0.73 per share, but showing an increase from 0.64pershareayearago[1][2]EarningsPerformance−Theearningssurpriseforthequarterwas−2.740.64 per share a year ago [1][2] Earnings Performance - The earnings surprise for the quarter was -2.74%, with the company previously expected to post earnings of 0.84 per share but actually reporting 0.85pershareinthepriorquarter,resultinginapositivesurpriseof1.190.85 per share in the prior quarter, resulting in a positive surprise of 1.19% [2] - Over the last four quarters, North American Construction has surpassed consensus EPS estimates only once [2] Revenue Performance - The company posted revenues of 218.42 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 0.93%, but down from 239.7millioninthesamequarterlastyear[3]−NorthAmericanConstructionhastoppedconsensusrevenueestimatestwotimesoverthelastfourquarters[3]StockPerformanceandOutlook−SharesofNorthAmericanConstructionhavedeclinedapproximately21.6239.7 million in the same quarter last year [3] - North American Construction has topped consensus revenue estimates two times over the last four quarters [3] Stock Performance and Outlook - Shares of North American Construction have declined approximately 21.6% since the beginning of the year, compared to a decline of 4.5% for the S&P 500 [4] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] Earnings Estimates and Revisions - The current consensus EPS estimate for the upcoming quarter is 0.71 on revenues of 226.82million,andforthecurrentfiscalyear,itis226.82 million, and for the current fiscal year, it is 3 on revenues of $903.49 million [8] - The trend for estimate revisions ahead of the earnings release has been unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Building Products - Heavy Construction industry, to which North American Construction belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a relatively strong position [9] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9]