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35400.0 | 2021-08-17 00:00:00 UTC | Arcosa Becomes Oversold (ACA) | ACA | https://www.nasdaq.com/articles/arcosa-becomes-oversold-aca-2021-08-17 | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $49.50 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 59.5. A bullish investor could look at ACA's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares:
Looking at the chart above, ACA's low point in its 52 week range is $41.73 per share, with $68.46 as the 52 week high point — that compares with a last trade of $49.80.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $49.50 per share. A bullish investor could look at ACA's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $41.73 per share, with $68.46 as the 52 week high point — that compares with a last trade of $49.80. | A bullish investor could look at ACA's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $41.73 per share, with $68.46 as the 52 week high point — that compares with a last trade of $49.80. In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $49.50 per share. | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $49.50 per share. A bullish investor could look at ACA's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $41.73 per share, with $68.46 as the 52 week high point — that compares with a last trade of $49.80. | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $49.50 per share. A bullish investor could look at ACA's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $41.73 per share, with $68.46 as the 52 week high point — that compares with a last trade of $49.80. |
35401.0 | 2021-08-05 00:00:00 UTC | Arcosa, inc (ACA) Q2 2021 Earnings Call Transcript | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-q2-2021-earnings-call-transcript-2021-08-05 | nan | nan | Image source: The Motley Fool.
Arcosa, inc (NYSE: ACA)
Q2 2021 Earnings Call
Aug 5, 2021, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the Arcosa, Inc. Second Quarter 2021 Earnings Conference Call. My name is Grutchen, and I will be your conference call coordinator today. A copy of yesterday's press release and the slide presentation for this morning's call are posted on the company's Investor Relations website, www.ir.arcosa.com. [Operator Instructions] Now I would like to turn the call over to your host, Gail Peck, CFO for Arcosa. Ms. Peck, you may begin.
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Gail M. Peck -- Chief Financial Officer
Good morning, everyone, and thank you for joining Arcosa's Second Quarter 2021 Earnings Call. With me today is Antonio Carrillo, President and CEO. Let me begin with some important reminders. Today's comments and presentation slides contain financial measures that have not been prepared in accordance with GAAP. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation. In addition, today's conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the company's SEC filings for more information on these risks and uncertainties, including the press release we filed yesterday and our Form 10-Q expected to be filed later today. Antonio will begin today's call with a discussion of our overall second quarter performance and the acquisition of Southwest Rock Products that we were pleased to announce in yesterday's release. I would now like to turn the call over to Antonio.
Antonio Carrillo -- President, Chief Executive Officer & Director
Thank you, Gail. Good morning, and thank you for joining today's call. Starting on Slide 4. Arcosa executed well in the second quarter, generating 3% revenue growth over the prior year and reporting adjusted EBITDA in line with last year's record. Despite the headwinds we faced in the quarter, our solid financial performance underscores the resilience of our business and the benefit of strategic investments we have made to expand our business into attractive new markets. Let me discuss a few key takeaways from the quarter. The Construction Products business, which now represents more than 50% of our adjusted EBITDA continues to benefit from strong activity and the outlook remains positive. The segment generated 17% growth in the second quarter adjusted EBITDA even after the impact of excessive rainfall. We're managing our continued steel price inflation through proactive price increases across our operations. However, in our barge business and to a lesser extent, wind towers, high steel prices are limiting the conversion of inquiries into new orders weighing on our near-term expectations for these businesses. Engineered Structures continues to experience a healthy level of order activity, driven by three key trends: increased utility spending to improve the reliability of the electric grid; the connection of renewable energy sources to the power grid; and continued federal and safety investments in road infrastructure. Finally, I'm excited to announce today our acquisition of Southwest Rock Products. The transaction, which follows our purchase of StonePoint Materials this past April exemplifies how we are successfully executing on our long-term strategy by evolving our portfolio toward higher margins, faster growth and less cyclical products. Turning to Slide 7. Let's look at our consolidated results for the second quarter. Revenue increased 3% from the prior year reflecting strength in our construction products and engineered structural segments, partially offset by continued softness in the Transportation Products segment. Adjusted EBITDA was approximately even compared to the record level in last year's second quarter, benefiting in part from the contribution from recent acquisitions in Construction Products and favorable product mix in Engineered Structures. Second quarter adjusted net income declined 18%, primarily due to the increase in noncash expenses, specifically depreciation and amortization from recent acquisitions. Please turn to Slide 8. We're excited about the acquisition of Southwest Rock, a leading pure-play aggregates producer serving the Greater Metropolitan Phoenix market. Aggregates business of Southwest Rock scale and quality are scarce, and we couldn't be more pleased that their experienced team is joining Arcosa. With five active sand and gravel locations and one hardrock quarry location, Southwest Rock produces approximately five million tons of aggregates annually and is backed by an attractive reserve profile. Southwest Rock expands our footprint into one of the fastest-growing construction markets in the U.S. and strengthens our position as a leading aggregate supplier.
The acquisition should take Arcosa's production to over 35 million tons of aggregate and specialty materials, plus between three million and four million tons of recycled aggregates. From a financial perspective, Southwest Rock generated trailing 12 months revenue of approximately $36 million and adjusted EBITDA of approximately $14 million as of May 31, 2021. Given this high level of profitability, Southwest adjusted EBITDA margins are accretive to our Construction Products segment and to Arcosa overall. Importantly, the acquisition was sourced from StonePoint's pipeline of deals highlighting the advantages of our increased scale and the follow-on benefits this acquisition strategy can provide. Turning to Slide 9. We're particularly enthusiastic about the significant growth opportunity that Southwest Rock adds to our Construction Materials platform. As I've mentioned earlier, the Phoenix metropolitan market is one of the fastest-growing construction markets in the nation, underpinned by robust large-scale investment needs to support population growth. In fact, Arizona is ranked number `1 in infrastructure spending on highway contracts over the past five years underscoring the compelling growth opportunity for Arcosa as we enter this market at scale. Since becoming an independent public company almost three years ago, we have invested approximately $1.3 billion in strategic Construction Materials acquisitions that reposition Arcosa to our higher growth and higher-margin infrastructure opportunities. Having announced two sizable acquisitions, StonePoint and Southwest Rock already this year, we intend to focus our efforts over the next few quarters on integration, organic growth opportunities and simplifying Arcosa's overall portfolio. I will now turn over the call to Gail to discuss our segment performance, and then I will return to update you on our outlook for our business.
Gail M. Peck -- Chief Financial Officer
Thank you, Antonio. I'll start on Slide 10 and review our segment results from the second quarter. Construction Products revenue grew 38% and adjusted EBITDA increased 17%, led by the contribution from the StonePoint acquisition that closed in early April. Segment EBITDA margin was 22.1%, down from 26% a year ago. There were several factors driving the margin decline. As Antonio noted, excessive rainfall in Texas, our largest exposure and along the Gulf Coast, reduced segment adjusted EBITDA by approximately $3 million to $4 million in the quarter. Construction activity returned to healthy levels in June once the weather improved. We had strong shipment levels on days not impacted by wet weather, but overall, volumes were lower than expected due to rainfall. Higher diesel costs also impacted margins for the quarter. Lastly, the inclusion of StonePoint was also dilutive to margins as we now include their revenues on a gross basis, inclusive of pass-through freight in line with our legacy businesses. We experienced pricing gains across most markets supported by strengthening product demand and attractive fundamentals. Midyear price increases have also been announced, which should provide further support heading into next year. Our two businesses that were most impacted by COVID, lightweight aggregates and trench shoring products generated strong results during the quarter with EBITDA above year ago levels and demand tracking at a pre-pandemic pace. The integration of StonePoint is advancing well, and our synergy realization is progressing as planned. Despite adverse weather in the second quarter, StonePoint is on track to meet our adjusted EBITDA expectations for 2021. The integration into our legacy Texas and Louisiana footprint is well underway and nearly complete from an operational standpoint. A focus area going forward is systems integration as we move to consolidate our entire construction materials platform onto one common ERP. Turning to Engineered Structures on Slide 11. We Revenue increased 9% and adjusted EBITDA increased 25% to $38 million. We were helped during the quarter by a $7.7 million resolution of a customer dispute from 2019 in our wind towers business. The associated towers were removed from our backlog in 2020, and we were pleased to reach a settlement agreement. We are currently building towers for this customer, and we maintain a good commercial relationship. Without this benefit, our adjusted EBITDA margin would have been 12.9%, in line with our overall expectations for the segment. We experienced higher sequential EBITDA and margins in our utility structures business from improved mix our successful efforts to mitigate high steel prices and further progress on our Mexico plant reopening. Utility structure orders were healthy, leading to a book-to-bill above one during the quarter. We also saw favorable order trends in traffic structures, and we continue to see positive demand drivers for telecom structures, though order volumes were lower in the quarter. Our wind tower business performed largely in line with our expectations. As Antonio will discuss, order activity was muted as our customers delayed purchase decisions seeking more clarity on near-term fundamentals.
The combined backlog for utility, wind and related structures was $348.5 million at the end of the quarter, about flat with year ago levels. Our storage tank product line in the U.S. and Mexico continued to perform well with higher margins year-over-year as we benefited from strong residential and commercial demand for propane tanks. Moving to Transportation Products on Slide 12. Both revenue and adjusted EBITDA were significantly lower year-over-year, reflecting the cyclical downturns in both our barge and rail components businesses. Revenue was down 47% and adjusted EBITDA decreased 73% as margins compressed due to lower utilization in both businesses. Steel prices continued to advance in the second quarter, suppressing new order volumes in our barge business. We received orders of $55 million, representing a book-to-bill of 1.1 times on a low level of revenues. Pricing of new orders reflect weak market conditions with orders helping to provide a base level of production in 2022 to remain flexible and provide time for a recovery. Our backlog was $139.4 million at the end of the quarter, with approximately $47 million scheduled for delivery in 2022. We are optimistic regarding our market recovery in our steel components business, and our recent results exhibit signs of troughing. The railcar OEM had a second consecutive quarter of a book-to-bill above 1, and third-party expectations continue to point to higher North American railcar deliveries next year. As we wait for a much anticipated recovery, we have been successfully diversifying into new markets, attracting new customers and controlling cost to maintain positive EBITDA. Wrapping up on Slide 13, I'll conclude with a few comments on our balance sheet, liquidity and free cash flow. As we discussed previously, we issued $400 million of low coupon long-term debt in April to fund the StonePoint acquisition. To fund yesterday's closing of Southwest Rock, we used cash on hand and $100 million of borrowing under our revolving credit facility. Following the acquisition, our net debt to adjusted EBITDA stands at roughly 2.4 times and within our long-term target of two to 2.5 times, even as our transportation products EBITDA is cyclically depressed. As I noted, acquisition integration is a key focus area, and we will likely take a pause on additional acquisitions near term as we focus on completing those efforts. We continue to see attractive opportunities to deploy capital organically, and we are maintaining our capex guidance of $110 million to $120 million, which should cover any anticipated needs from Southwest Rock. Post-acquisition, we have more than $300 million of available liquidity and no near-term debt maturities. As we maintain our cash-focused culture, we improved our working capital management by $41 million relative to the first quarter. This helped us return to a positive free cash flow position, generating $29 million in the quarter. I will now turn the call back over to Antonio for more discussion on our business outlook.
Antonio Carrillo -- President, Chief Executive Officer & Director
Thank you, Gail. Please turn to Slide 15. As Gail discussed, Arcosa delivered solid Q2 results, led by growth in our Construction Products and Engineered Structures businesses, despite the impact of abnormally wet weather in our largest market and continued softness in our Transportation Products segment. The outlook for Construction Products remains positive, driven by strong demand for aggregates in our key markets in Texas as well as Tennessee and solid recovery of our specialty materials and shoring products. An area of weakness we continue to see is Pennsylvania, where we have some exposure to natural gas infrastructure spending. Overall, we expect a strong second half for our Construction Products segment, reflecting continued positive market fundamentals favorable pricing and positive contribution from our two new recent acquisitions. In our Engineered Structures segment, we expect to see year-over-year growth in the second half of the year in most of our businesses. In utility structures, we are seeing strong demand as our customers direct capital spending toward electric grid hardening and reliability projects. Department of Transportation spending in Florida and throughout the Southeast remains favorable, leading to healthy order growth and rising customer demand for our traffic structures, while telecom customers continue to build out 5G networks. In our storage tank business, we are experiencing strong pricing power giving steady demand, primarily reflecting continued housing market growth and the trend toward the urbanization. In our wind tower business, we have seen a recent pause in new orders in light of growing uncertainties surrounding potential extension of the U.S. potential tax credit for new wind farm developments. High steel prices and a late June extension of the PTC for wind farms currently under construction have also contributed to the delay in customer decisions. As a result, our unsold production slots for the fourth quarter are expected to remain unfilled. Given our positive view of the market beyond this anticipated short-term slowdown, we're working to extend some backlog into 2022 to allow time for the market to rebound. Our main priorities during this period will be to prudently manage our costs while at the same time, preserve our manufacturing flexibility in order to serve our customers when the demand picks back up. The long-term fundamentals for wind energy remained positive and our leading manufacturing presence -- North American presence positions us well for the future. In our Transportation Products segment, market conditions remain challenging in our barge business, impacted by the COVID-19-related downturn and high steel prices that have reduced order activity for both dry and liquid tank barges. In addition, to the idling of our Louisiana plant in the third quarter, which we previously announced, we are extending our barge-related backlog into 2022 to maintain manufacturing continuity.
At the same time, given the slowdown in the market, we foresee significant pent-up demand. Therefore, maintaining our manufacturing flexibility during this period will be critical to be able to serve the market as it recovers. For our steel components business serving North American railcar industry, we believe that 2021 is likely to mark the trough of the cycle. We're encouraged by the signs of improvement we have seen in this business, as new railcar orders are outpaced shipments in the second quarter. And we expect further growth in the second half of the year and into fiscal 2022. As we look longer term, there has been positive movement on the national infrastructure debate and the potential for increased stimulus. We're encouraged by the recent positive traction in the Senate to advance a new infrastructure framework. We're also cautiously optimistic concerning the reauthorization of the FAST Act at higher spending levels. Please turn to Slide 16. Turning now to our financial guidance for the year. Our consolidated adjusted EBITDA guidance of $270 million to $290 million for 2021 is unchanged, which keeps us in pace to meet or exceed last year's record performance, led by strength in Construction Products and Engineered Structures. On a more granular level, our new forecast includes the results of Southwest Rock from the date of the acquisition. It also includes a reduction in our full year adjusted EBITDA outlook in the Transportation Products segment to approximately $25 million, down from $35 million to $40 million we previously expected. In summary, I'm pleased with the progress we're making in executing our long-term vision. At our Investor Day in 2018, we communicated the focus of Arcosa would be to growing Construction Products segment and enhance our Engineered Structured business. We have executed on those strategies and our financial strength and reduced cyclicality show the results. Through acquisitions and organic growth, we have significantly scaled our Construction Products business, strengthening our market position, broadening our capabilities and enhancing our growth potential while reducing overall cyclicality. Southwest Rock is an exciting addition to our aggregates business expanding our footprint into one of the fastest-growing metropolitan regions in the country. Also, the outlook for the Engineered Structures business remains favorable, as Arcosa retains a leading position supplying essential infrastructure to the renewable energy, utility, telecom and road construction markets. In short, we continue to advance on our long-term plan to grow in attractive markets with sustainable competitive advantages while reducing the cyclicality of our business and improving our returns. At the same time, we continue to work on our ESG efforts. ESG is becoming part of our culture. And as we evolve and learned, we should be able to accelerate our pace. As always, the health and safety of our employees continues to be the most important aspect of what we do every day. With the increased COVID cases we have recently seen in some of the regions where we operate, we will continue to monitor the situation and follow the CDC guidelines in our operations. Operator, I would like to open the call for questions.
Questions and Answers:
Operator
[Operator Instructions] And we'll take our first question from Ian Zaffino from Oppenheimer. Your line is open, please go ahead.
Ian Alton Zaffino -- Oppenheimer & Co. Inc. -- Analyst
Hi great, thank you very much. I just kind of wanted to ask you about the barge business on the steel side, is there a magic number steel needs to fall to that you think is going to improve the order flow? Is it a matter of just seeing directionally that it's going down? Does it need to fall below a threshold? How do you kind of think about that?
Antonio Carrillo -- President, Chief Executive Officer & Director
Thank you, Ian. Let me try to give you some more color around this issue. So as you saw in the quarter, even at these levels, we sold barges. We had a nice barge order, a few large barge orders. And the problem at selling at these prices is that the margins are low. So I think that it's not about a magic number. Every forecast that you see out there or most of the forecast that I've seen show price for steel slowing down sometime late this year or early next year. And what happens then is we have -- there's two pieces here. One is we have to make sure that I don't think prices will go down to $500 that we were seeing last year because the economy was shut down. But at the same time, I don't think the prices should stay at $1,700. There is a bunch of capacity coming online in 2022, both on the coil and the plate side. And that will lead us to believe that there's going to be a price reduction at some point in time. So I think two things need to happen. First, customers need to understand that we're not seeing $500 again in the near term. And second, the conditions -- there's two different markets here, the dry cargo barge market and the liquid cargo market. And they are different stages in their cycles. On the dry cargo side, everything looks very positive for significant orders to come back. There's been very low replacement of barges over the last four or five years. There is a lot of scrapping going on with high scrap prices at this moment. There's a lot of scrapping of barges happening. So everything seems to be pointing to a very robust comeback of that market. On the liquid side -- and the dry cargo didn't see a lot of impact from COVID. Grains continue to ship and everything happened well. On the liquid side, it's a little different story. They face two different problems. One is reduction in oil demand and oil derivatives. And at the same time, steel price is high. So I think, as you've seen, oil has continued to come back. We're still not at the levels where we were in 2019, but it's starting to come back. And then steel prices are still high. So I think that's going to take a little longer. So we expect a -- first a recovery on the dry cargo side and then on the liquid side. The good news is that we have a pretty strong backlog that will carry us through this time. This is not a -- I don't think this is a thing that will take years to solve itself. We know how to navigate these down cycles. We know how to manage our costs. And I think we're in a really good position as we've moved our portfolio to our construction products to withstand this slowdown. And then when it comes back, it's going to come back very strong. That's our expectation.
Ian Alton Zaffino -- Oppenheimer & Co. Inc. -- Analyst
Okay. Great. And then the second question would be -- and maybe just like a little bit of a 2-part question, but I wanted to ask you about guidance because unchanged here on the EBITDA line, but then you're adding in StonePoint. So kind of help us understand maybe your outlook for aggregates is similar to what you were originally thinking? It seems that way, but also maybe you could unpack your comments about the FAST Act extension or maybe wrap that around an infrastructure bill discussion as well and how that would help the Construction Products business? Thanks.
Gail M. Peck -- Chief Financial Officer
Yes. Ian, this is Gail. Let me take the first part of that, maybe I'll turn it back over to Antonio for the FAST Act implications. On the guidance topic, as you pointed out, we did maintain our guidance range of $270 million to $290 million of EBITDA, essentially looking at it in total. There were some goes in and goes out that balanced out within the range. We're pleased to see the full year EBITDA still tracking on pace with last year's strong results, and that's despite more than a $50 million headwind year-over-year that we're having from Transportation Products. Some of the minuses clearly were the impact of steel continuing to press higher ahead of our expectations that's impacted our order decisions -- customers' orders decisions, as Antonio said, on barge and wind tower customers. So leaving some production slots unfilled in the fourth quarter. Adverse weather clearly impacted construction. We know weather is always a variable, but the rain we had this past quarter was excessive. But to your question, Ian, the outlook for construction remains very much intact. We had a very strong June with -- when the weather is normal and dry. We're very pleased with what we're seeing. To the plus, we also had the wind tower settlement and then the earnings coming from Southwest Rock. But the net of all of these essentially, I think, is falling within the range, and we're very excited about keeping our guidance maintained.
Antonio Carrillo -- President, Chief Executive Officer & Director
And Ian, the second piece, just to clarify also on the guidance. StonePoint was already in our guidance in the previous quarter. What we added was Southwest Rock, and you see the number in the presentation. It's summarizing $4 million to $5 million that we added to the guidance, but we subtracted the barge piece. So as Gail said, we are very pleased with our Construction segment. We had a very, very, very wet April, especially May in Houston and in Dallas, and that slowed us down. And we gave a number of $3 million to $4 million of impact for the quarter. But when the rain subsided and it became a more normal weather pattern, we saw incredible demand come back, and we have a very, very strong June with very strong margins. We saw pricing power to push through our costs. So we were very pleased with the rebound in June. And we see very strong backlogs and very strong demand in most of the regions where we operate. So the FAST Act, it has to be extended, and we expect it to be extended hopefully at a higher level. But what we're seeing both with the FAST Act and with the infrastructure packages have been discussed, I think those are really good things. But we are seeing very strong demand at the moment with or without them. So I'm very encouraged by what we're seeing in the market, and we're very happy with the performance of our Construction Products segment, especially also now that the other two pieces of the segment, which were shoring and specialty materials have recovered very well. We saw very nice pricing and very nice volumes for the quarter.
Ian Alton Zaffino -- Oppenheimer & Co. Inc. -- Analyst
Ok perfect thank you very much.
Operator
We'll take our next question from Brent Thielman from D.A. Davidson. Your line is open, please go ahead.
Brent Edward Thielman -- D.A. Davidson & Co. -- Analyst
Hi good morning, Antonio, it looks like you've been able to manage through this steel environment pretty well in the energy structures business. Can we continue to expect this level of margin performance, I guess, ex the customer dispute into the second half and I guess going forward, I guess what I'm asking, is there any catch-up in higher steel prices or some of the supply chain constraints that might impact the segment going forward?
Antonio Carrillo -- President, Chief Executive Officer & Director
Yes. It's a really good question. I think we've been doing very well with it. As I -- I think in the previous call, I described our three types of businesses we have. And let me try to describe them again, each one has their own special circumstances. So we have -- I would tell you the one that we've been spending most of our time is our Engineered Structures, our transmission business when we have contracts with customers that allow us to pass through the cost, the additional cost of steel, but they allow us to do it normally in a -- with some delay. So there is some revisions that happen depending on the contract, monthly, quarterly, etc. So what you're seeing, we are already -- we have those impacts already in our margins today. So we've been absorbing part of that increase through the delay. So as we -- price of steel has continued to go up, but in much smaller numbers. So I think now we're at a relatively stable place in steel prices. So I think the margin should start normalizing, and we should start seeing probably some positive momentum in our utility structure business. The second part is the -- the second piece of the products that we produce is the ones that we make build-to-order. So those are our tanks. And on the tank side, as I mentioned in my prepared remarks, we're seeing very, very strong pricing power. There's a lot of demand for tanks. We are at a low -- normally during the summer, there's not a lot of demand for tanks, and we're seeing incredible demand. Our backlogs are very strong, and pricing is very, very strong. So we're very happy with what we're seeing in our tank business. The third piece is wind towers and barges, which are contracted prices. So we normally sell the towers or the barges, and we have a contract of steel attached to it. And those -- there is a pass-through, and I'm not concerned about those margins related to the contracts. So I would tell you, if anything, we have some positive momentum on the utility structure and tanks, the other ones I'm not concerned about. I don't see any supply issues in terms of volumes. But remember that we have said in our remarks that we will -- we are pushing some of the wind tower and barge volume to 2022. So you will see some reduced volumes in the second half of the year to try to maintain our flexibility. And what you will see is the impact of that margin because of that, not because we're seeing -- we cannot manage our costs simply because the volume is going to come down a little bit there.
Brent Edward Thielman -- D.A. Davidson & Co. -- Analyst
Okay. I appreciate that. And then I guess the second question would be on the acquisition you just completed Southwest. It looks like it produces exceptionally high margins, at least relative to the -- to your core Construction Products segment. Is there something in particular they're doing or just a really strong environment in Phoenix right now? Any color there would be helpful.
Antonio Carrillo -- President, Chief Executive Officer & Director
Sure. And I'll give you probably a bigger picture. We've mentioned in our calls before and the meetings with the analysts. The next stage for our growth that we developed probably 1.5 years ago, first stage was growing Texas and adjacencies. And then we worked on this strategic plan to the -- metropolitan areas would be our next stages for growth, and that's why we came up with StonePoint. And Arizona was in that list of metropolitan areas, we were very interested in. When we evaluate metropolitan areas, we go through a rigorous analysis of why we like them. And there's many things, including population growth and infrastructure spending, but also what's the competitive environment in that region. And those are the things that make the metropolitan areas have better or worse market conditions. I think Arizona and Phoenix specific in that region has all those things looking very positive. We like the mark. We like the population growth. We like the infrastructure spending. We like the competitive environment there. And all of those things are shown in the margin. And that's why when we look at our long-term strategy, we say we want to grow in attractive markets with competitive advantages, I think that's how they get reflected in the margin. So -- but we like Phoenix. It has great conditions. And the margin is high. One of the things I would tell you is that as a public company when we come in, we normally add some costs because of simply our reporting and things. We will probably drive that margin a little down based on some -- adding a few additional controls over that operation. But it's not major, but it's something we normally see. But very attractive, very good acquisition, a great market.
Brent Edward Thielman -- D.A. Davidson & Co. -- Analyst
Ok, Thank you.
Operator
We'll take our next question from Julio Romero from Sidoti. Your line is open, go ahead.
Julio Alberto Romero -- Sidoti & Company, LLC -- Analyst
Hi goodmorning Antonio and Gail. Just wanted to follow up on the last question from Brent there on the trailing 12-month margins for Southwest Rock. It looks really strong. And I don't know if you can speak to the -- I wanted to dig a little more on the kind of margins you expect Southwest to contribute to Arcosa. Is there a ramp to get to 39%? Is there upside to 39%? And just kind of help us understand what are normalized margins for Southwest kind of once it's under the Arcosa umbrella?
Antonio Carrillo -- President, Chief Executive Officer & Director
Julio, this is Antonio. As you know, we just closed on it yesterday was a -- it was a process that we started a few months ago. As I said in my remarks, this acquisition came -- was in the pipeline coming from StonePoint. So we bought StonePoint in April, and we're in August closing this one. So the margins have been relatively steady for them for the last several quarters. So it's not something that -- it's a unique circumstance. They performed very well over the last several, several quarters. They have different -- they have sand and gravel and they also have hard rock. But what I would like to offer to you that we're going to take the operation up and understand it well, understand what additional costs we're going to have to add to simply for control for our control environment and maybe come back to you with some additional color on the margins. We do not expect a significant reduction. But I would say that -- and we've seen that in Dallas at some point in time when there is high demand, we can get to the 39%, 40%. But in the long term, I think the margin should be more in line with our peers. So they should be probably in the mid-30s in that region. I think the 39% would be the higher end of the range that I would give you for that operation.
Julio Alberto Romero -- Sidoti & Company, LLC -- Analyst
Great. Thank you for the color there. And I guess my second question is just on barge, can you maybe give a little more granularity on the evolution of customer thinking about capital deployment for barges? I'm just -- yes, I would think there's a reasonable expectation that maybe still might even go up from here. So I just want to kind of ask about how customers are thinking? Are some customers capitulating or some still holding out? And has that mix of customers accepting the new normal of steel versus holding out evolved at all in the last 6, nine months?
Antonio Carrillo -- President, Chief Executive Officer & Director
Yes. That's a good question. So as you can imagine, steel prices and the acceptance of steel price really has to do with our customers' business model. And let me give you a couple of examples. On the utility structures, our customers are able to pass that additional steel cost through their tariffs to the customers. In the case of barges, it's a different scenario. There's relatively established barge rates for the river system. And when you plug those barge rates in the river system that allows you to calculate how much you can pay for a barge. So -- and those are things that don't move overnight. So I think if the steel prices are staying at these levels over the medium and long term, which I don't believe they're going to stay at this level, but they're going to be higher than they were in the past. There needs to be some adjustment to the tariffs in the river system for them to be able to invest. And that should happen. It just takes longer time. And that's the mental aspect that they're going through. What how much can I pay for a barges based on the rates in the river at the moment? That's one. The other one is the demand side, how many barges are idle and how many barges are being used. On the dry cargo side, I would tell you, it's -- the river is busy. There's a lot of movement. Of course, right now, it's not the main crop season, but it's going to get busy soon, and everything points out to be a very strong market coming from the grain side. The coal, believe it or not, the coal market has been busy with natural prices going up. There's a lot of coal movement happening. I don't expect the coal barge market to be at any point, growing. But it's not -- I wouldn't say it's a noise anymore. If you think about it, if you take out the barge, the coal barges from the equation, if you're really negative on them. The replacement cycle for the barges is several times what we've seen over the last few years. So there's been several years of very, very low dry cargo barges being built compared to what the market needs to be. So we are very encouraged, and that's what the customers are telling us. There's a need for barges, there's a need to replace those barges. We just need to make the numbers work for them. On the liquid side, I would say this is the same mentality. There's the rates in the river, but there's also the demand side and demand is coming back slowly. I would say the petrochemical is coming back very strong, but the oil side is a little slower. So that's a long answer to your question, but I think the mentality is, there is a need for the barges. We need to make the economics work, and they're trying to figure out what that numbers look like.
Julio Alberto Romero -- Sidoti & Company, LLC -- Analyst
Thank you. I like long answers, so I appreciate that. Thanks again for taking the question. And congrats again on the acquisition.
Antonio Carrillo -- President, Chief Executive Officer & Director
Thank you
Operator
And we'll take our next question from Stefanos Crist from CJS. Your line is open, please go ahead.
Stefanos Chambous Crist -- CJS Securities, Inc. -- Analyst
Good morning and. Congrats on the quarter. Could you -- on aggregates, can you give us some more color on pricing and volume? And then what organic growth is built in your guidance?
Gail M. Peck -- Chief Financial Officer
Good morning. Stefanos, this is Gail. Yes, sure, I'll take that one. On the volume side, clearly, we had the weather impact. So when weather was dry, our volume was tracking ahead of our expectations. I think as I mentioned earlier, we saw strong aggregates volume growth in June and unit profitability. So encouraged with the attractive fundamentals, encouraged with our ability to drive price in most markets. We had price increases early in the year, and we implemented additional midyear pricing increases. So good momentum on the pricing side, I'd say very much in line with the market and our peers on that front. So weather being the biggest impact on natural and recycled aggregates. Really kind of moving away from aggregates for a bit, our specialty materials and trench shoring their more nationwide businesses and not as impacted by the localized weather effects in Texas and on the coast that we had. So we saw strong lightweight volumes with demand, as I mentioned, at pre-pandemic pace. So very encouraged with what we're seeing there. The ability to drive price there as well and same on our trench shoring side. So all in all, on a quarter perspective, coming back to aggregate, ex the addition of StonePoint. So clearly, we had good growth in volumes with the quarter with bringing StonePoint into the portfolio. We did see volume growth. I'd attribute that some to some bolt-ons that we completed late in the year last year, but we did see a small amount of organic growth despite the weather.
Antonio Carrillo -- President, Chief Executive Officer & Director
Yes. Stefanos, this is Antonio. One more thing that we did not touch on the remarks, but the other thing that we saw in the quarter was there was a -- one of the bottlenecks in the industry, specifically in Texas was there was cement locations. After the storms in February, there was a shutdown of a couple of cement plants that created a significant problem of cement industry here in Texas, and there were allocations. We consume cement in our specialty materials in our Cherry business. But also a lot of our customers, which are ready-mix companies that buy cement, were in a location. So that created a bottleneck for the quarter. That allocation has gone away. There's imports coming into the Port of Houston and others. And there is no allocation anymore. So I think we should be a much more conducive environment in the second half of the year to be able to grow organically in Texas.
Stefanos Chambous Crist -- CJS Securities, Inc. -- Analyst
That's great color. Thank you. And then just on the Southwest acquisition. Is the strategy going forward to build more in Phoenix? Or do you think the strategy is more focused on finding other metropolitan areas? How should investors think about that?
Antonio Carrillo -- President, Chief Executive Officer & Director
Yes. So that's a great question. As I've said in my prepared remarks, I think we've done a lot of acquisitions. We've used our balance sheet to a point where we feel very comfortable where we are. As Gail said in her prepared remarks, we're measuring 2.4 times after the acquisition on net debt-to-EBITDA. But at a very low point in our cyclical business is the barge and rail components, etc. So we are very comfortable where we are. But at the same time, our focus over the next few quarters is going to be finishing the integration of these acquisitions. We have a lot of things to do there, extracting all the value from them making sure we fund them well. We understand their needs and their organic needs also, all of them come with very strong management teams, but also with a lot of ideas of how to grow organically. And when we put all those ideas together, we have -- the good news is we have a lot of projects that we can choose to continue to allocate capital. So over the next few quarters, I think you should see us allocate capital to finishing the integration organic growth. We have some very nice organic projects that are getting to be finished. And then the way you should see each one of our platforms, Phoenix, Tennessee, Pennsylvania, Texas, is there's going to be some bolt-ons around them. Normally, we've been able to find those bolt-ons at relatively attractive prices, easy to integrate, and they allow us to grow faster. And you will see us do that before we jump into another metropolitan area. Those are larger, and we need to generate cash to be able to do that again. So the short term is more on the bolt-on organic growth and integration.
Stefanos Chambous Crist -- CJS Securities, Inc. -- Analyst
Thats great thank you and congrats again.
Antonio Carrillo -- President, Chief Executive Officer & Director
Thank you
Operator
And our next question comes from Justin Bergner from Gabelli Funds. Your line is open, please go ahead.
Justin Laurence Bergner -- Gabelli Funds, LLC -- Analyst
Good morning Antonio, good morning Gail. A few questions on Southwest. Some quick ones. First, was it an auction? Second, what would you say is its competitive advantage? And third, given sort of the low revenue per ton, sort of what's the backdrop there? Is it low transportation costs? And what are the capex needs?
Antonio Carrillo -- President, Chief Executive Officer & Director
Yes. Let me take a stab. So the deal was not a process. As I said, when we bought StonePoint, they have developed a relationship with the majority shareholder and they were already in talks, and we were able to, let's say, continue building that trust with the owner and with the management team. And we -- I think we reached a good agreement with the shareholders. So it was not a process, and that's what we like. We normally -- we prefer acquisitions where there is not a process involved. And so we were very happy with that piece. The company has the competitive advantage, I would say, like every other -- like every other aggregates business is their location, where the reserves are. It's always the biggest thing. And they have really good locations. They've been in that market forever, both the owner and the operator and the management team are very experienced in the region, very experienced in the area. We're inheriting a very capable management team that knows the area very well. And it comes down to location, and that's the competitive advantage. Also, they have incredibly well-kept and well-run operations. When you go there -- I can tell you I've seen a lot. And these are as good as it gets. They had an incredible clean, well-maintained, well-capitalized business. We do not see significant need for any capex. Like always, what you should see us do in Phoenix, like in all the areas, our focus is going to be as we grow this business, so continue to find reserves and look for additional growth in the region. But overall, no big needs for capex.
Gail M. Peck -- Chief Financial Officer
Yes. Justin, I would say -- this is Gail. I would say, on the capex front, their historical run rate has been about $3 million to $4 million a year. They are -- from an equipment and property plant perspective in fabulous shape. They've been investing in the company, keeping up on maintenance. So we really don't see anything near term other than their normal annual needs from a capex perspective.
Justin Laurence Bergner -- Gabelli Funds, LLC -- Analyst
Great. Thank you. And one other question, if I may. I know you discussed sort of input cost pressures in regards to steel earlier. But is it safe to say that considering the puts and takes to your maintained $270 million to $290 million EBITDA guidance, the increased cost pressure is not one of the headwinds or larger headwinds in the current guidance than when it was sort of updated or maintained a quarter ago? Or has cost pressure become more of a headwind in your maintained guide?
Antonio Carrillo -- President, Chief Executive Officer & Director
No, I think you're right. I think we've been able to manage the cost pressure well. And I think we found -- we are -- let's say, we found the way to do it and do it well and our team is doing a fantastic job passing those through. The thing -- the biggest headwind for us is volume in barges and wind towers. Those are the two headwinds for the second quarter. We believe they are temporary, and they're going to come back. And the good news is we built an incredible platform. Our construction segment is the size of Arcosa in terms of EBITDA when we spun 2.5 years ago. So we built a very strong base. And when this cyclical business has come back, we mentioned the rail components is coming back, and we're going to start seeing that in the second half a little by little. So I think I'm very comfortable where we are happy with what we see for the future and happy with the way we're passing through the price increases. And once we solve this steel issue of hitting our customers' volumes, I think we're going to be in a really nice track.
Justin Laurence Bergner -- Gabelli Funds, LLC -- Analyst
Thank you. Best of luck in the second half.
Antonio Carrillo -- President, Chief Executive Officer & Director
Thank you.
Operator
And it appears that we have no further questions at this time. I will now turn the program back over to Gail for any additional or closing remarks.
Gail M. Peck -- Chief Financial Officer
Thank you, Grutchen, and thank you, everyone, for joining us today. We look forward to speaking with you again next quarter. [Operator Closing Remarks]
Duration: 52 minutes
Call participants:
Gail M. Peck -- Chief Financial Officer
Antonio Carrillo -- President, Chief Executive Officer & Director
Ian Alton Zaffino -- Oppenheimer & Co. Inc. -- Analyst
Brent Edward Thielman -- D.A. Davidson & Co. -- Analyst
Julio Alberto Romero -- Sidoti & Company, LLC -- Analyst
Stefanos Chambous Crist -- CJS Securities, Inc. -- Analyst
Justin Laurence Bergner -- Gabelli Funds, LLC -- Analyst
More ACA analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, inc (NYSE: ACA) Q2 2021 Earnings Call Aug 5, 2021, 8:30 a.m. Davidson & Co. -- Analyst Julio Alberto Romero -- Sidoti & Company, LLC -- Analyst Stefanos Chambous Crist -- CJS Securities, Inc. -- Analyst Justin Laurence Bergner -- Gabelli Funds, LLC -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Our two businesses that were most impacted by COVID, lightweight aggregates and trench shoring products generated strong results during the quarter with EBITDA above year ago levels and demand tracking at a pre-pandemic pace. | Davidson & Co. -- Analyst Julio Alberto Romero -- Sidoti & Company, LLC -- Analyst Stefanos Chambous Crist -- CJS Securities, Inc. -- Analyst Justin Laurence Bergner -- Gabelli Funds, LLC -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Arcosa, inc (NYSE: ACA) Q2 2021 Earnings Call Aug 5, 2021, 8:30 a.m. Engineered Structures continues to experience a healthy level of order activity, driven by three key trends: increased utility spending to improve the reliability of the electric grid; the connection of renewable energy sources to the power grid; and continued federal and safety investments in road infrastructure. | Arcosa, inc (NYSE: ACA) Q2 2021 Earnings Call Aug 5, 2021, 8:30 a.m. Davidson & Co. -- Analyst Julio Alberto Romero -- Sidoti & Company, LLC -- Analyst Stefanos Chambous Crist -- CJS Securities, Inc. -- Analyst Justin Laurence Bergner -- Gabelli Funds, LLC -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. As Gail discussed, Arcosa delivered solid Q2 results, led by growth in our Construction Products and Engineered Structures businesses, despite the impact of abnormally wet weather in our largest market and continued softness in our Transportation Products segment. | Davidson & Co. -- Analyst Julio Alberto Romero -- Sidoti & Company, LLC -- Analyst Stefanos Chambous Crist -- CJS Securities, Inc. -- Analyst Justin Laurence Bergner -- Gabelli Funds, LLC -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Arcosa, inc (NYSE: ACA) Q2 2021 Earnings Call Aug 5, 2021, 8:30 a.m. In our Transportation Products segment, market conditions remain challenging in our barge business, impacted by the COVID-19-related downturn and high steel prices that have reduced order activity for both dry and liquid tank barges. |
35402.0 | 2021-08-01 00:00:00 UTC | How Many Arcosa, Inc. (NYSE:ACA) Shares Have Insiders Sold, In The Last Year? | ACA | https://www.nasdaq.com/articles/how-many-arcosa-inc.-nyse%3Aaca-shares-have-insiders-sold-in-the-last-year-2021-08-01 | nan | nan | We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Arcosa, Inc. (NYSE:ACA).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
The Last 12 Months Of Insider Transactions At Arcosa
Over the last year, we can see that the biggest insider sale was by the Group President, Kerry Cole, for US$1.0m worth of shares, at about US$63.36 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$54.76). So it is hard to draw any strong conclusion from it.
Insiders in Arcosa didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NYSE:ACA Insider Trading Volume August 1st 2021
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Arcosa Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Arcosa shares. In total, insiders sold US$2.5m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership of Arcosa
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.6% of Arcosa shares, worth about US$42m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Arcosa Tell Us?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for Arcosa you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | So we'll take a look at whether insiders have been buying or selling shares in Arcosa, Inc. (NYSE:ACA). NYSE:ACA Insider Trading Volume August 1st 2021 For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. In total, insiders sold US$2.5m worth of shares in that time, and we didn't record any purchases whatsoever. | So we'll take a look at whether insiders have been buying or selling shares in Arcosa, Inc. (NYSE:ACA). NYSE:ACA Insider Trading Volume August 1st 2021 For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. Insiders sold stock recently, but they haven't been buying. | NYSE:ACA Insider Trading Volume August 1st 2021 For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. So we'll take a look at whether insiders have been buying or selling shares in Arcosa, Inc. (NYSE:ACA). The Last 12 Months Of Insider Transactions At Arcosa Over the last year, we can see that the biggest insider sale was by the Group President, Kerry Cole, for US$1.0m worth of shares, at about US$63.36 per share. | So we'll take a look at whether insiders have been buying or selling shares in Arcosa, Inc. (NYSE:ACA). NYSE:ACA Insider Trading Volume August 1st 2021 For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. What Might The Insider Transactions At Arcosa Tell Us? |
35403.0 | 2021-07-15 00:00:00 UTC | Relative Strength Alert For Arcosa | ACA | https://www.nasdaq.com/articles/relative-strength-alert-for-arcosa-2021-07-15 | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $53.66 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 62.9. A bullish investor could look at ACA's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares:
Looking at the chart above, ACA's low point in its 52 week range is $40.44 per share, with $68.46 as the 52 week high point — that compares with a last trade of $53.86.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $53.66 per share. A bullish investor could look at ACA's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $40.44 per share, with $68.46 as the 52 week high point — that compares with a last trade of $53.86. | A bullish investor could look at ACA's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $40.44 per share, with $68.46 as the 52 week high point — that compares with a last trade of $53.86. In trading on Thursday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $53.66 per share. | In trading on Thursday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $53.66 per share. A bullish investor could look at ACA's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $40.44 per share, with $68.46 as the 52 week high point — that compares with a last trade of $53.86. | In trading on Thursday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $53.66 per share. A bullish investor could look at ACA's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $40.44 per share, with $68.46 as the 52 week high point — that compares with a last trade of $53.86. |
35404.0 | 2021-07-13 00:00:00 UTC | Arcosa, Inc. (ACA) Ex-Dividend Date Scheduled for July 14, 2021 | ACA | https://www.nasdaq.com/articles/arcosa-inc.-aca-ex-dividend-date-scheduled-for-july-14-2021-2021-07-13 | nan | nan | Arcosa, Inc. (ACA) will begin trading ex-dividend on July 14, 2021. A cash dividend payment of $0.05 per share is scheduled to be paid on July 30, 2021. Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 11th quarter that ACA has paid the same dividend. At the current stock price of $56.36, the dividend yield is .35%.
The previous trading day's last sale of ACA was $56.36, representing a -17.67% decrease from the 52 week high of $68.46 and a 45.22% increase over the 52 week low of $38.81.
ACA is a part of the Capital Goods sector, which includes companies such as ASML Holding N.V. (ASML) and Danaher Corporation (DHR). ACA's current earnings per share, an indicator of a company's profitability, is $1.85. Zacks Investment Research reports ACA's forecasted earnings growth in 2021 as -20%, compared to an industry average of 24.3%.
For more information on the declaration, record and payment dates, visit the ACA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ACA's forecasted earnings growth in 2021 as -20%, compared to an industry average of 24.3%. For more information on the declaration, record and payment dates, visit the ACA Dividend History page. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. ACA's current earnings per share, an indicator of a company's profitability, is $1.85. Arcosa, Inc. (ACA) will begin trading ex-dividend on July 14, 2021. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 11th quarter that ACA has paid the same dividend. For more information on the declaration, record and payment dates, visit the ACA Dividend History page. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. Arcosa, Inc. (ACA) will begin trading ex-dividend on July 14, 2021. This marks the 11th quarter that ACA has paid the same dividend. |
35405.0 | 2021-07-12 00:00:00 UTC | Ex-Dividend Reminder: Arcosa, IDEX and Kadant | ACA | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-arcosa-idex-and-kadant-2021-07-12 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Arcosa Inc (Symbol: ACA), IDEX Corporation (Symbol: IEX), and Kadant Inc (Symbol: KAI) will all trade ex-dividend for their respective upcoming dividends. Arcosa Inc will pay its quarterly dividend of $0.05 on 7/30/21, IDEX Corporation will pay its quarterly dividend of $0.54 on 7/30/21, and Kadant Inc will pay its quarterly dividend of $0.25 on 8/12/21. As a percentage of ACA's recent stock price of $55.40, this dividend works out to approximately 0.09%, so look for shares of Arcosa Inc to trade 0.09% lower — all else being equal — when ACA shares open for trading on 7/14/21. Similarly, investors should look for IEX to open 0.24% lower in price and for KAI to open 0.14% lower, all else being equal.
Below are dividend history charts for ACA, IEX, and KAI, showing historical dividends prior to the most recent ones declared.
Arcosa Inc (Symbol: ACA):
IDEX Corporation (Symbol: IEX):
Kadant Inc (Symbol: KAI):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.36% for Arcosa Inc, 0.97% for IDEX Corporation, and 0.56% for Kadant Inc.
Free Report: Top 7%+ Dividends (paid monthly)
In Monday trading, Arcosa Inc shares are currently off about 1.1%, IDEX Corporation shares are down about 0.5%, and Kadant Inc shares are up about 0.1% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a percentage of ACA's recent stock price of $55.40, this dividend works out to approximately 0.09%, so look for shares of Arcosa Inc to trade 0.09% lower — all else being equal — when ACA shares open for trading on 7/14/21. Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Arcosa Inc (Symbol: ACA), IDEX Corporation (Symbol: IEX), and Kadant Inc (Symbol: KAI) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for ACA, IEX, and KAI, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Arcosa Inc (Symbol: ACA), IDEX Corporation (Symbol: IEX), and Kadant Inc (Symbol: KAI) will all trade ex-dividend for their respective upcoming dividends. Arcosa Inc (Symbol: ACA): IDEX Corporation (Symbol: IEX): Kadant Inc (Symbol: KAI): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of ACA's recent stock price of $55.40, this dividend works out to approximately 0.09%, so look for shares of Arcosa Inc to trade 0.09% lower — all else being equal — when ACA shares open for trading on 7/14/21. | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Arcosa Inc (Symbol: ACA), IDEX Corporation (Symbol: IEX), and Kadant Inc (Symbol: KAI) will all trade ex-dividend for their respective upcoming dividends. As a percentage of ACA's recent stock price of $55.40, this dividend works out to approximately 0.09%, so look for shares of Arcosa Inc to trade 0.09% lower — all else being equal — when ACA shares open for trading on 7/14/21. Below are dividend history charts for ACA, IEX, and KAI, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Arcosa Inc (Symbol: ACA), IDEX Corporation (Symbol: IEX), and Kadant Inc (Symbol: KAI) will all trade ex-dividend for their respective upcoming dividends. As a percentage of ACA's recent stock price of $55.40, this dividend works out to approximately 0.09%, so look for shares of Arcosa Inc to trade 0.09% lower — all else being equal — when ACA shares open for trading on 7/14/21. Arcosa Inc (Symbol: ACA): IDEX Corporation (Symbol: IEX): Kadant Inc (Symbol: KAI): In general, dividends are not always predictable, following the ups and downs of company profits over time. |
35406.0 | 2021-07-02 00:00:00 UTC | Unpleasant Surprises Could Be In Store For Arcosa, Inc.'s (NYSE:ACA) Shares | ACA | https://www.nasdaq.com/articles/unpleasant-surprises-could-be-in-store-for-arcosa-inc.s-nyse%3Aaca-shares-2021-07-02 | nan | nan | Arcosa, Inc.'s (NYSE:ACA) price-to-earnings (or "P/E") ratio of 31.2x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 19x and even P/E's below 11x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so lofty.
Arcosa hasn't been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average. One possibility is that the P/E is high because investors think this poor earnings performance will turn the corner. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
NYSE:ACA Price Based on Past Earnings July 2nd 2021
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Arcosa.
How Is Arcosa's Growth Trending?
In order to justify its P/E ratio, Arcosa would need to produce outstanding growth well in excess of the market.
Retrospectively, the last year delivered a frustrating 23% decrease to the company's bottom line. At least EPS has managed not to go completely backwards from three years ago in aggregate, thanks to the earlier period of growth. So it appears to us that the company has had a mixed result in terms of growing earnings over that time.
Turning to the outlook, the next year should generate growth of 8.3% as estimated by the five analysts watching the company. With the market predicted to deliver 17% growth , the company is positioned for a weaker earnings result.
With this information, we find it concerning that Arcosa is trading at a P/E higher than the market. It seems most investors are hoping for a turnaround in the company's business prospects, but the analyst cohort is not so confident this will happen. There's a good chance these shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with the growth outlook.
The Final Word
Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
We've established that Arcosa currently trades on a much higher than expected P/E since its forecast growth is lower than the wider market. Right now we are increasingly uncomfortable with the high P/E as the predicted future earnings aren't likely to support such positive sentiment for long. Unless these conditions improve markedly, it's very challenging to accept these prices as being reasonable.
And what about other risks? Every company has them, and we've spotted 1 warning sign for Arcosa you should know about.
It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a P/E ratio below 20x).
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | NYSE:ACA Price Based on Past Earnings July 2nd 2021 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Arcosa. Arcosa, Inc.'s (NYSE:ACA) price-to-earnings (or "P/E") ratio of 31.2x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 19x and even P/E's below 11x are quite common. Arcosa hasn't been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average. | Arcosa, Inc.'s (NYSE:ACA) price-to-earnings (or "P/E") ratio of 31.2x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 19x and even P/E's below 11x are quite common. NYSE:ACA Price Based on Past Earnings July 2nd 2021 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Arcosa. With the market predicted to deliver 17% growth , the company is positioned for a weaker earnings result. | Arcosa, Inc.'s (NYSE:ACA) price-to-earnings (or "P/E") ratio of 31.2x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 19x and even P/E's below 11x are quite common. NYSE:ACA Price Based on Past Earnings July 2nd 2021 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Arcosa. Arcosa hasn't been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average. | Arcosa, Inc.'s (NYSE:ACA) price-to-earnings (or "P/E") ratio of 31.2x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 19x and even P/E's below 11x are quite common. NYSE:ACA Price Based on Past Earnings July 2nd 2021 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Arcosa. Turning to the outlook, the next year should generate growth of 8.3% as estimated by the five analysts watching the company. |
35407.0 | 2021-06-16 00:00:00 UTC | The Math Shows FPX Can Go To $137 | ACA | https://www.nasdaq.com/articles/the-math-shows-fpx-can-go-to-%24137-2021-06-16 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust US Equity Opportunities ETF (Symbol: FPX), we found that the implied analyst target price for the ETF based upon its underlying holdings is $136.86 per unit.
With FPX trading at a recent price near $123.07 per unit, that means that analysts see 11.21% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FPX's underlying holdings with notable upside to their analyst target prices are Cardlytics Inc (Symbol: CDLX), Karuna Therapeutics Inc (Symbol: KRTX), and Arcosa Inc (Symbol: ACA). Although CDLX has traded at a recent price of $104.71/share, the average analyst target is 33.23% higher at $139.50/share. Similarly, KRTX has 22.67% upside from the recent share price of $126.90 if the average analyst target price of $155.67/share is reached, and analysts on average are expecting ACA to reach a target price of $72.00/share, which is 19.32% above the recent price of $60.34. Below is a twelve month price history chart comparing the stock performance of CDLX, KRTX, and ACA:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust US Equity Opportunities ETF FPX $123.07 $136.86 11.21%
Cardlytics Inc CDLX $104.71 $139.50 33.23%
Karuna Therapeutics Inc KRTX $126.90 $155.67 22.67%
Arcosa Inc ACA $60.34 $72.00 19.32%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | First Trust US Equity Opportunities ETF FPX $123.07 $136.86 11.21% Cardlytics Inc CDLX $104.71 $139.50 33.23% Karuna Therapeutics Inc KRTX $126.90 $155.67 22.67% Arcosa Inc ACA $60.34 $72.00 19.32% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FPX's underlying holdings with notable upside to their analyst target prices are Cardlytics Inc (Symbol: CDLX), Karuna Therapeutics Inc (Symbol: KRTX), and Arcosa Inc (Symbol: ACA). Similarly, KRTX has 22.67% upside from the recent share price of $126.90 if the average analyst target price of $155.67/share is reached, and analysts on average are expecting ACA to reach a target price of $72.00/share, which is 19.32% above the recent price of $60.34. | Three of FPX's underlying holdings with notable upside to their analyst target prices are Cardlytics Inc (Symbol: CDLX), Karuna Therapeutics Inc (Symbol: KRTX), and Arcosa Inc (Symbol: ACA). Similarly, KRTX has 22.67% upside from the recent share price of $126.90 if the average analyst target price of $155.67/share is reached, and analysts on average are expecting ACA to reach a target price of $72.00/share, which is 19.32% above the recent price of $60.34. First Trust US Equity Opportunities ETF FPX $123.07 $136.86 11.21% Cardlytics Inc CDLX $104.71 $139.50 33.23% Karuna Therapeutics Inc KRTX $126.90 $155.67 22.67% Arcosa Inc ACA $60.34 $72.00 19.32% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, KRTX has 22.67% upside from the recent share price of $126.90 if the average analyst target price of $155.67/share is reached, and analysts on average are expecting ACA to reach a target price of $72.00/share, which is 19.32% above the recent price of $60.34. Three of FPX's underlying holdings with notable upside to their analyst target prices are Cardlytics Inc (Symbol: CDLX), Karuna Therapeutics Inc (Symbol: KRTX), and Arcosa Inc (Symbol: ACA). Below is a twelve month price history chart comparing the stock performance of CDLX, KRTX, and ACA: Below is a summary table of the current analyst target prices discussed above: | First Trust US Equity Opportunities ETF FPX $123.07 $136.86 11.21% Cardlytics Inc CDLX $104.71 $139.50 33.23% Karuna Therapeutics Inc KRTX $126.90 $155.67 22.67% Arcosa Inc ACA $60.34 $72.00 19.32% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FPX's underlying holdings with notable upside to their analyst target prices are Cardlytics Inc (Symbol: CDLX), Karuna Therapeutics Inc (Symbol: KRTX), and Arcosa Inc (Symbol: ACA). Similarly, KRTX has 22.67% upside from the recent share price of $126.90 if the average analyst target price of $155.67/share is reached, and analysts on average are expecting ACA to reach a target price of $72.00/share, which is 19.32% above the recent price of $60.34. |
35408.0 | 2021-06-02 00:00:00 UTC | Arcosa, Inc.'s (NYSE:ACA) Financials Are Too Obscure To Link With Current Share Price Momentum: What's In Store For the Stock? | ACA | https://www.nasdaq.com/articles/arcosa-inc.s-nyse%3Aaca-financials-are-too-obscure-to-link-with-current-share-price-momentum | nan | nan | Arcosa (NYSE:ACA) has had a great run on the share market with its stock up by a significant 10% over the last three months. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. Particularly, we will be paying attention to Arcosa's ROE today.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
How To Calculate Return On Equity?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Arcosa is:
4.8% = US$91m ÷ US$1.9b (Based on the trailing twelve months to March 2021).
The 'return' refers to a company's earnings over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.05 in profit.
Why Is ROE Important For Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
A Side By Side comparison of Arcosa's Earnings Growth And 4.8% ROE
When you first look at it, Arcosa's ROE doesn't look that attractive. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 9.6%. Thus, the low net income growth of 3.6% seen by Arcosa over the past five years could probably be the result of the low ROE.
We then compared Arcosa's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 9.1% in the same period, which is a bit concerning.
NYSE:ACA Past Earnings Growth June 2nd 2021
Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Arcosa is trading on a high P/E or a low P/E, relative to its industry.
Is Arcosa Making Efficient Use Of Its Profits?
A low three-year median payout ratio of 8.2% (implying that the company retains the remaining 92% of its income) suggests that Arcosa is retaining most of its profits. However, the low earnings growth number doesn't reflect this as high growth usually follows high profit retention. Therefore, there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
In addition, Arcosa only recently started paying a dividend so the management must have decided the shareholders prefer dividends over earnings growth.
Summary
On the whole, we feel that the performance shown by Arcosa can be open to many interpretations. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa (NYSE:ACA) has had a great run on the share market with its stock up by a significant 10% over the last three months. NYSE:ACA Past Earnings Growth June 2nd 2021 Earnings growth is an important metric to consider when valuing a stock. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. | Arcosa (NYSE:ACA) has had a great run on the share market with its stock up by a significant 10% over the last three months. NYSE:ACA Past Earnings Growth June 2nd 2021 Earnings growth is an important metric to consider when valuing a stock. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Arcosa is: 4.8% = US$91m ÷ US$1.9b (Based on the trailing twelve months to March 2021). | Arcosa (NYSE:ACA) has had a great run on the share market with its stock up by a significant 10% over the last three months. NYSE:ACA Past Earnings Growth June 2nd 2021 Earnings growth is an important metric to consider when valuing a stock. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. | Arcosa (NYSE:ACA) has had a great run on the share market with its stock up by a significant 10% over the last three months. NYSE:ACA Past Earnings Growth June 2nd 2021 Earnings growth is an important metric to consider when valuing a stock. Why Is ROE Important For Earnings Growth? |
35409.0 | 2021-05-03 00:00:00 UTC | Are Arcosa, Inc. (NYSE:ACA) Investors Paying Above The Intrinsic Value? | ACA | https://www.nasdaq.com/articles/are-arcosa-inc.-nyse%3Aaca-investors-paying-above-the-intrinsic-value-2021-05-03 | nan | nan | Today we will run through one way of estimating the intrinsic value of Arcosa, Inc. (NYSE:ACA) by taking the expected future cash flows and discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.
The calculation
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:
10-year free cash flow (FCF) estimate
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Levered FCF ($, Millions) US$122.5m US$162.7m US$154.1m US$149.3m US$147.0m US$146.3m US$146.7m US$147.9m US$149.7m US$151.8m
Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ -5.29% Est @ -3.09% Est @ -1.55% Est @ -0.47% Est @ 0.28% Est @ 0.81% Est @ 1.18% Est @ 1.44%
Present Value ($, Millions) Discounted @ 7.8% US$114 US$140 US$123 US$111 US$101 US$93.4 US$87.0 US$81.4 US$76.4 US$71.9
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$998m
After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.0%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.8%.
Terminal Value (TV)= FCF2030 × (1 + g) ÷ (r – g) = US$152m× (1 + 2.0%) ÷ (7.8%– 2.0%) = US$2.7b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$2.7b÷ ( 1 + 7.8%)10= US$1.3b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$2.3b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$60.3, the company appears slightly overvalued at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
NYSE:ACA Discounted Cash Flow May 3rd 2021
The assumptions
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Arcosa as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.8%, which is based on a levered beta of 1.094. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Moving On:
Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Why is the intrinsic value lower than the current share price? For Arcosa, we've put together three pertinent aspects you should further examine:
Financial Health: Does ACA have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Future Earnings: How does ACA's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Arcosa, we've put together three pertinent aspects you should further examine: Financial Health: Does ACA have a healthy balance sheet? Today we will run through one way of estimating the intrinsic value of Arcosa, Inc. (NYSE:ACA) by taking the expected future cash flows and discounting them to today's value. NYSE:ACA Discounted Cash Flow May 3rd 2021 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. | Today we will run through one way of estimating the intrinsic value of Arcosa, Inc. (NYSE:ACA) by taking the expected future cash flows and discounting them to today's value. NYSE:ACA Discounted Cash Flow May 3rd 2021 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. For Arcosa, we've put together three pertinent aspects you should further examine: Financial Health: Does ACA have a healthy balance sheet? | NYSE:ACA Discounted Cash Flow May 3rd 2021 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Today we will run through one way of estimating the intrinsic value of Arcosa, Inc. (NYSE:ACA) by taking the expected future cash flows and discounting them to today's value. For Arcosa, we've put together three pertinent aspects you should further examine: Financial Health: Does ACA have a healthy balance sheet? | Today we will run through one way of estimating the intrinsic value of Arcosa, Inc. (NYSE:ACA) by taking the expected future cash flows and discounting them to today's value. NYSE:ACA Discounted Cash Flow May 3rd 2021 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. For Arcosa, we've put together three pertinent aspects you should further examine: Financial Health: Does ACA have a healthy balance sheet? |
35410.0 | 2021-05-01 00:00:00 UTC | Validea Kenneth Fisher Strategy Daily Upgrade Report - 5/1/2021 | ACA | https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-5-1-2021-2021-05-01 | nan | nan | The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The rating according to our strategy based on Kenneth Fisher changed from 58% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arcosa, Inc. is focused on manufacturing and producing infrastructure-related products and services. The Company provides its products to a spectrum of markets throughout construction, energy, and transportation. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. The Construction Products Group segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for | ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. Company Description: Arcosa, Inc. is focused on manufacturing and producing infrastructure-related products and services. | ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. | ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The rating according to our strategy based on Kenneth Fisher changed from 58% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. | ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins. |
35411.0 | 2021-04-30 00:00:00 UTC | Arcosa, Inc (ACA) Q1 2021 Earnings Call Transcript | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-q1-2021-earnings-call-transcript-2021-04-30 | nan | nan | Image source: The Motley Fool.
Arcosa, Inc (NYSE: ACA)
Q1 2021 Earnings Call
Apr 30, 2021, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen, and welcome to the Arcosa, Inc. First Quarter 2021 Earnings Conference Call. My name is Mallory [Phonetic] and I will be your conference call Coordinator. [Operator Instructions]
Now, I would like to turn the call over to your host Gail Peck, SVP, Finance and Treasurer for Arcosa. Ms. Peck, you may begin.
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Gail M. Peck -- SVP, Finance & Treasurer
Good morning, everyone. Thank you for joining our first quarter 2021earnings call With me today are Antonio Carrillo, President and CEO; and Scott Beasley, CFO.
A question-and-answer session will follow their prepared remarks. A copy of yesterday's press release and the slide presentation for this morning's call are posted at our Investor Relations website www.ir.arcosa.com. A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website under the News & Events tab.
Today's comments and presentation slides contain financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation.
Let me also remind you that today's conference call contains forward-looking statement as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the Company's SEC filings for more information on these risks and uncertainties, including the earnings press release we filed yesterday and our Form 10-Q expected to be filed later today.
I would now like to turn the call over to Antonio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Gail. Good morning and thank you for joining us to discuss Arcosa's first quarter results and our updated outlook for 2021, following the recently completed acquisition of StonePoint Materials. Our first quarter financial performance exceeded our expectations despite continued challenges related to COVID-19 and the impact from winter storm Yuri in February. These results speak to the strength and resilience of our portfolio of core infrastructure products and to the strategic investments we've made to reduce cyclicality, drive growth and enhance margins.
Turning to slide 4, let me discuss a few key takeaways. Our results were better than expected during the quarter, driven by strong Construction Products performance. In particular, the construction business has benefited from strong demand and construction activity. Within Engineered Structures, our order activity for the utility, traffic, and telephone -- telecom structures business held strong throughout the quarter. The fundamental drivers for this business has remained very healthy given the investment in grid hardening, increased demand coming from renewable expansions, and the wireless build-out. The Transportation segment continues to be impacted by the rail cycle and high steel prices.
However, we believe the rail cycle is reaching its lowest point and will start recovering. And once steel prices normalize, significant pent-up demand for barges will convert to new orders. In the meantime, we're taking steps to maintain manufacturing flexibility and at the same time, we're focusing on managing our costs.
In April, we completed the previously announced acquisition of StonePoint Materials, a top 25 US platform that advances the repositioning of our culture. StonePoint is a premier asset that accelerates the growth and scale of our Construction Materials platform, having market-leading positions in attractive new geographies, more than four years of reserves, and an experienced team.
Our short-term focus will be integrating StonePoint and building on this platform. Still, we continue to seek out higher margin and higher growth opportunities to further expand our portfolio. To that end, we are pleased to have a robust pipeline and will continue to apply a rigorous analysis to every new project, organic and inorganic, and to evaluate whether that particular investment meets our strict requirements for long-term strategic value and return potential. Our businesses must compete for capital to ensure that we invest in those opportunities with the highest long-term potential. Also, as I will discuss later, we published our first full-year sustainability report underscoring our commitment to ESG.
Turning to slide 7. There is an overview of our results for the quarter. While revenue was down 10% year-to-year, this was consistent with our expectations. Adjusted EBITDA of $56.5 million was ahead of our forecast, even after a $4 million to $5 million negative impact from winter storm Yuri. The storm increased our natural gas costs significantly and shut down many of our facilities for over a week. On the positive side, our Construction segment performed better than expected during the quarter and helped us compensate for the effects of the storm.
I will now turn over the call to Scott to discuss segment performance. And then I will return to update you on the outlook for the business. Scott?
Scott Beasley -- Arcosa, Inc.
Thank you, Antonio, and good morning everyone. I'll start on slide 8 and review our segment results from the first quarter. Construction Products revenue grew 3% to $153.2 million and adjusted EBITDA increased 2% to $32.9 million, despite the negative impacts from winter storm Yuri. We estimate that the winter storm impacted Construction Products EBITDA by roughly $3 million to $4 million, although dry weather in March helped us recover well. Segment EBITDA margin of 21.5% was flat versus last year, another noteworthy accomplishment given the February storm.
Let me discuss a few highlights from the quarter. Volumes in our legacy natural aggregates business were up organically and through bolt-on acquisitions, driven by higher infrastructure-related work in Texas. We continued to drive our cost per ton lower, through operating efficiencies, lower maintenance costs, and lower fuel costs versus the first quarter of 2020. We continue to see nice price increases across our footprint, although a mix shift to a few lower ASP plants resulted in a lower overall ASP.
The primary headwinds in our aggregates business were oil and gas markets, which were stronger in Q1 of 2020, but the overall performance in aggregates was excellent. The market for recycled aggregates also continues to be very healthy in both Houston and Dallas. Margins were pressured in these businesses, given the impact of the storm, but end markets are healthy and we recovered well in March, as the weather improved.
Finally, we're very encouraged that the two businesses that were most impacted by COVID, lightweight aggregates and trench shoring products, have both recovered nicely and are now performing close to or above pre-pandemic levels.
Our lightweight aggregates business was roughly flat with the pre-pandemic first quarter of 2020 and trench shoring EBITDA was above the first quarter of 2020. The recovery in these businesses gives us confidence in the underlying health of our infrastructure markets and provides additional stability to our overall portfolio. We closed on StonePoint in April, so the acquisitions' contribution will begin in Q2.
Turning to Engineered Structures on slide 9. Revenue in Q1 declined moderately to $207 million, but was roughly flat sequentially with Q4. Adjusted EBITDA was down year-over-year to $26.4 million. There were several unusual items in the quarter. We were helped by the sale of a non-operating facility that produced a $3.9 million gain, but we were impacted by several unplanned expenses from winter storm Yuri. Most notably, larger natural gas bills in several facilities. Those bills increased our cost by approximately $1 million in the quarter.
Our operating teams did an excellent job recovering from the storm and we were able to meet customer deliveries despite challenges throughout the supply chain, particularly for steel. Our revenue decline was roughly in line with expectations. We continue to ramp up the wind tower plant that we took offline in Q4 of last year, in order to retool for larger towers. We were near full production at the plant in March and it has started to contribute positive EBITDA after several months of drag.
We also made progressive improvement on the reopening of our Mexico utility structures facility, but it contributed to the year-over-year margin decline. Our 12.8% adjusted EBITDA margin in the quarter, once adjusted for these positives and negatives, was near the bottom end of our 12% to 13% range, but we continue to expect the 12% to 13% margin for the full year in 2021.
Demand across transmission, wind towers, telecom, and traffic structures has remained strong, with healthy levels of inquiries across all of those product lines. The combined backlog for utility, wind, and related structures, increased to $379.5 million from $334 million at the end of 2020. Additionally, our storage tank product lines in the United States and Mexico continued to perform extremely well. We have been able to pass through higher steel prices and have also benefited from strong residential and commercial demand for propane tanks, driven by COVID-related de-urbanization.
Moving to Transportation Products on slide 10, our year-over-year results reflect cyclical downturns in both our barge and rail components businesses. Revenue was down 31% and adjusted EBITDA was down 53% as margins compressed from lower utilization in both businesses. The barge business received $16 million of orders in the quarter and backlog decreased to $133.2 million. High steel prices continue to pressure the conversion of inquiries into new orders, although we are confident in the eventual recovery that will likely be led by the dry barge market.
As we have noted on the last several calls, we have reduced our capacity and cost structure in barge and rail components. And we made the difficult decision to announce the planned idling of our Louisiana barge facility, unless demand recovers in the near term. I'll note that both businesses continue to be EBITDA-positive and we maintain our expectation for the segment to generate $35 million to $40 million of EBITDA this year. EBITDA will likely be near the low end of this range if steel prices do not moderate in the near term.
Finishing on slide 11, in early April, we closed our inaugural bond offering of $400 million of eight-year unsecured senior notes to fund the StonePoint acquisition. We were able to price the offering with a 4.375% coupon, an attractive rate of long-term financing. We received public debt ratings of BB providing a strong access to capital and the flexibility to pursue our disciplined growth plans.
Following the acquisition and offering, our net debt to adjusted EBITDA stands at roughly 1.9 times, below our long-term target of 2.0 to 2.5 times. We had lower than expected free cash flow in Q1, partially due to higher accounts receivable from delayed shipments due to winter storm Uri, as well as strategic steel purchases. Even with this usage of working capital in Q1, we expect to be back to roughly working capital neutral for the full year.
I will now turn the call back over to Antonio for more on our business outlook.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Scott. As Scott detailed, our results exceeded our expectations in the first quarter, despite continued COVID-related market challenges and the negative impact from winter storm Uri. Before turning to our near-term outlook, slide 13 details the StonePoint acquisition that closed in April, which was an important addition for Arcosa.
Please turn to slide 14. As we look toward the remainder of 2021, our near-term view of our markets has not changed materially from the update we provided on our fourth quarter conference call in February. We continue to see robust and resilient construction activity in our key markets through Texas and the Gulf Coast benefiting our Construction Products business.
I'm particularly excited about the growth opportunities from our acquisitions over the past 18 months, including Cherry, Strata, and StonePoint, which have significantly expanded our aggregates platform, adding complementary products and attractive new geographies. Benefiting from favorable infrastructure spending trends in Texas, our largest market, as well as on a national scale, the outlook for our Construction Products segment remains strong.
Within our Engineered Structures segment, demand trends are positive. We received healthy orders for wind towers and utility structures during the quarter, as well as in our new offerings in traffic and telecom markets. We're also seeing steady demand and rising backlogs for storage tanks in both the US and Mexico. While elevated steel prices remain a headwind in this segment, we will continue to stay focused on passing through price increases as much as possible.
From the demand point of view, I am encouraged by the levels of backlog and inquiry volumes overall that we are experiencing, which reflect continued interest in investment in renewable energy, grid hardening, and other power reliability initiatives. As we discussed last quarter, our transportation segment continues to face COVID-related market challenges. Utilization rates in the liquid barge market, while improving, remain low and high steel prices have impacted demand for dry cargo barges.
Although steel components revenue declined year-over-year in the first quarter, revenue grew sequentially from the fourth quarter, suggesting this market may be turning the corner. In addition, we have expanded our products and customer base to non-rail markets, which should increase our operational leverage once the rail market demand normalizes. In this environment, we're taking steps to manage our expenses prudently and maintain manufacturing flexibility.
It's important to remember that ramping production at the barge plants up and down is something we know how to do very well. We remain confident in the medium and long-term fundamentals of our Transportation Products business. Depressed demand now due to high steel prices and COVID-related factors, should translate into a strong market once these conditions abate.
Please turn to slide 15. Our financial guidance for the year, the growth businesses were focused on building Construction Products and Engineered Structures are well-positioned for the future. And as I noted, we also expect a good recovery in the businesses that make up Transportation Products, once short-term conditions improve.
Given the completion of the StonePoint acquisition on April 9, we're increasing our full-year revenue guidance. We now expect revenue to be between $1.88 billion and $2 billion, up from our prior guidance of $1.78 billion to $1.9 billion. We are also increasing our 2021 adjusted EBITDA guidance. We now expect EBITDA to be between $270 million and $290 million, up from our prior guidance range of $250 million to $270 million. We anticipate that StonePoint will contribute approximately $20 million in adjusted EBITDA for the full 2021, representing about eight months of ownership. Overall, these revised forecast positions us to meet or potentially exceed our 2020 results.
Turning to slide 16. Finally, I'd like to highlight some achievements we've made with respect to our environmental, social, and governance efforts, which represent a fundamental component of our long-term strategy. 2020 marked our first full year of ESG disclosure and early in the process, we believe strongly in the long-term value that ESG brings to our stakeholders and the communities in which we operate. To that end, last week, we published our first year sustainability report, which details the many ways in which Arcosa prioritizes ESG across the company.
At Arcosa, there is no higher priority than employee health and safety, and I am pleased with the progress we've made in this area, following the 2019 launch of ARC 100, our enhanced safety initiative. Arcosa team members achieved a 56% reduction in the total recordable incident rate in 2020, demonstrating the impact of ARC 100 on improving our safety culture.
From a sustainability standpoint, our plant operations take an active role in pursuing initiatives that promote environmental responsibility. Last year, for example, Arcosa achieved a 12% reduction in greenhouse gas emission intensity through a range of energy reduction investments across our facilities. In addition, we recorded a 16% reduction in municipal water intensity, due to our conservation efforts focused on water consumption and water recycling. Our sustainability focus also plays a part in our capital allocation strategy. As we prioritize on building and expanding our growth businesses, we evaluate investments with an eye toward sustainability, as well as economic returns. Our growing recycled aggregates business is a perfect example of how Arcosa can enhance sustainability within our operations while generating above average margins and returns.
Please turn to slide 18. In closing, our long-term vision remains unchanged. We will continue to pursue growth in attractive markets where we enjoy sustainable competitive advantages while reducing the complexity -- complexity and cyclicality of Arcosa. In addition, we remain committed to improving our returns on capital and integrating environmental, social, and governance initiatives into our culture.
Operator, I would like to open the call for questions.
Questions and Answers:
Operator
[Operator Instructions] We will go with our first question from Ian Zaffino from Oppenheimer.
Ian Zaffino -- Oppenheimer -- Analyst
Thank you very much. Want to ask you guys -- and I know it's a little early, but if we were to kind of focus on the infrastructure bill or were to bring to your business, can you maybe walk us through where you think it would help you, what we should expect and I believe, most of the projects are probably funded through year-end, so maybe it doesn't hit until 2022, but maybe discuss the timing as well, as far as what you anticipate? Then I have a follow-up. Thanks.
Antonio Carrillo -- President and Chief Executive Officer
Sure. Ian good morning. This is Antonio. Let me take that one. The guidance that we gave and the optimism we're showing in our Construction and our Engineered Structures business are not related to the infrastructure bill. We are very optimistic on the -- where the businesses are, with or without the bill, and just simply on seeing the conditions and the backlogs and the interest in the products that we're seeing, the health of the markets, the markets we see them as very healthy. Now, having said so, if an infrastructure bill comes, I think when you read it, you can also track most of our products across the whole bill, so it would have very positive impacts across the organization.
But as you said most of these projects are things that take time to come through, to materialize, in many cases transmission lines to get permitted and projects to be developed. So I think you're right, I think 2022 probably mid-year '22 is where we would see some of this bill to start trickling down to where we can see it in our, in our backlogs, and in orders translate into actual orders. So, but overall we're positive with or without the bill, of course, the bill would help us in the medium term.
Ian Zaffino -- Oppenheimer -- Analyst
Okay. Thank you. And on the barge side, is there a magic number steel needs to decline, to the -- get orders back or maybe restart Madisonville and then also oil and oil prices have improved, you know the market is getting better. Has that translated or do you think that's going to translate into orders, how -- what are your customers telling you?
Antonio Carrillo -- President and Chief Executive Officer
Sure. So I don't think there is a magic number. But let me give you some of what we're seeing. We are seeing good inquiries on the dry cargo side. So there is an interest in barges and but if you think about the percentage of the cost of a barge that steel represents and that's why barge is such an important thing, steel is such an important component for barge, it's a huge percentage of the barge total cost. So, that's why there is two pieces to the steel question. One is, steel prices are too high, and I believe they are too high in every sense of -- we've been doing this for a long time, and I've never seen hot-rolled steel at this prices. And it's not only that they are high, they went up very, very fast.
But the other thing is, we're coming from a very low place, so if you look at a year ago, the prices of steel were less than half of where they are today. So, our customers have to, on one side, get away from the thought that we're going to get still at $500 again, because that's not going to happen. And on the other hand, steel mills have to come down from their expectation that people are going to buy anything at $1,300 a ton. That's not going to happen. So I think there is some movement on both sides that needs to happen.
Having said so, and it will come down, it's just a matter of time. It always happens, this goes up and it will come down. These are cyclical markets and it will come down. Is it going to be in three months or six months, I cannot tell you, but I'm optimistic that by the end of the year, we're going to see trends in a better direction.
On the demand side from our customers, I agree with you, I think oil prices have improved. When you look at the utilization rates from our customers, they are going up, they are still in the 80s [Phonetic], but some of our customers just published results and they're saying they expect them to be in the 90s [Phonetic] and that's what really drives demand for barges, when the utilization rates are very high, people need them. And our customers, they want to save some money on the barge, but they really want to make money on their own business, which is moving stuff now, if it's oil or grains or anything you want.
So, if demand improves like it's improving, at some point the steel price becomes a secondary issue and we believe demand will come back. And as we've talked over the last few years, there has been several years already where demand is too low and the replacement cycle has been delayed. So we expect significant pent-up demand, once these things abate. So, long answer to your question, but we're optimistic on steel prices coming down and the demand is there and will be there in the short term.
Ian Zaffino -- Oppenheimer -- Analyst
Okay. One more would be, just kind of capital structure, and how are you thinking about that and I know, there is some pieces of the business that may not be with you in the long term, but I guess, those are sort of troughing out now. How are you thinking about maybe sources of liquidity and then also on the outflow side, any other acquisitions, I know you've been busy, but how are you kind of thinking about incremental deals? Thanks.
Scott Beasley -- Arcosa, Inc.
Yeah, sure. This is Scott, Ian. On the capital structure, we did our inaugural bond offering and feel very good about our balance sheet, we stood at 1.9 times net debt to adjusted EBITDA after the offering and the acquisition that's still below our long-term target. So we do feel some headroom to make disciplined acquisitions if they come up. We feel equally good about our liquidity. By doing the offering, we are able to enhance our liquidity, so liquidity is not an issue. And the third part of your question was cash flow. We still expect to have very healthy free cash flow from our businesses that can fund both organic growth and then potential acquisition. So, even after this acquisition, we feel very good about our balance sheet and liquidity.
Ian Zaffino -- Oppenheimer -- Analyst
All right. Thank you very much.
Operator
And we will take our next question from Brent Thielman from D.A. Davidson.. Please go ahead.
Brent Thielman -- D.A. Davidson -- Analyst
Great, thank you. Good morning. Scott or Antonio, I guess with respect to the guidance, has there been a change in what you expect from the barge business versus a couple of months ago?
Scott Beasley -- Arcosa, Inc.
Sure. This is Scott. Yeah, I'd say, like I said in my prepared remarks, we gave the range of $35 million to $40 million of Transportation EBITDA for the full year, and given the steel prices have continued to move higher in the last eight weeks since we talked, we said we expect to be now at the low end of that range, closer to $35 million and $40 million. We do have some unsold capacity in some slots in the fourth quarter, if steel prices moderated in the near term, we'd be more optimistic about selling those slots, if they stay high, likely those production slots will go unfilled and wind up at the bottom end of that range. So it's really, as Antonio said, we feel good about the underlying health of the markets and as demand continues to improve and the steel prices will eventually moderate, that business will recover, it just may not be in time for calendar year 2021.
Brent Thielman -- D.A. Davidson -- Analyst
Okay. But the range is still in play. Okay. I guess the second question is on the Engineered Structures business, it doesn't look like steel prices are having a big effect, but maybe you could talk about any concerns on margins in the next couple of quarters, as that flows through, should we be worried about that?
Antonio Carrillo -- President and Chief Executive Officer
Yes. Brent, it's Antonio. On the Engineered Structures we have, across the company, let me explain to you the three types of businesses and how we treat steel. So, the first thing is, we do not speculate with steel, we don't buy steel expecting it to go up. And so, that's not our business, our business is on making stuff and providing good value to our customers. So, we have three types of business, starting with the simplest one, the tank business, which is a made-to-stock business. We buy -- we buy steel and we sell things into the market without having an idea of the price when we're selling.
So that's the business that you have to be careful because you have to adjust prices and pass them through to the customer really fast. And we've done that. As Scott mentioned that in his remarks, that business has performed very well, we've been able to pass the steel prices to customers and there is significant demand for tanks right now, which is not normal. Normally, tanks are not sold during this month, because they are winter products, but demand continues to go up and our backlog is very, very strong. So the market is allowing us to pass through the prices and we expect that to continue to be. So, we are not concerned about that.
The second type of business is contract business, where we have wind towers and barges are that type of business, where we buy steel tied to a contract. So we know what price of steel we have in order for a barge or a wind tower and we buy steel for that price and we pass it through to the customer and there is no uncertainty around it.
And then the third type of business is our utility structures. In that business, we also have contracts with customers and we can pass through the steel prices, but there is normally a lag. We have contracts that are three-month contracts depending on the type of the customer, three months, six months, or yearly contracts and there is a pricing mechanism and there can be some delay. And I think we have thousands of orders coming through every day and I think a little portion of the lower margins you are seeing is related to that. I expect that to continue to be the case where we have some hiccups here and there.
But the margin as Scott said, we expect the margin to stay within that range of 12% to 13% for the remainder of the year. I think the first quarter was on the bottom end, but we are going to recover and we are -- we have healthy backlogs that should allow us to pass through that -- those price increases. So long answer again, but we are not very concerned, it's something we have to watch steel prices have risen very fast, so we just have to stay on top of it.
Brent Thielman -- D.A. Davidson -- Analyst
Very good, thank you.
Operator
We will take our next question from Julio Romero from Sidoti.
Julio Romero -- Sidoti -- Analyst
Hey, good morning, Antonio. Good morning, Scott.
Antonio Carrillo -- President and Chief Executive Officer
Good morning.
Julio Romero -- Sidoti -- Analyst
Wanted to ask about the cash flow in the quarter. Your payables continue to make progress. I think you ended days payable in the 40s, maybe if you could talk about what you did there? And then secondly, how should days payable and more broadly cash flow trend over the next few quarters?
Scott Beasley -- Arcosa, Inc.
Sure. Julio, this is Scott. So for free cash flow in Q1, it wasn't a great quarter. We did have EBITDA above our expectations, we had capex in line with our expectations, but our challenge was on working capital, where we consumed about $40 million of cash in the quarter. You're right, we did make some good progress in payables and extending terms to what we call more industry norms. But, then we had challenges on both receivables and inventory. Part of that was winter storm-related, so we had shipments that slipped later in Q1 and therefore the receivables into Q2. We don't expect any issue collecting those. And those will normalize over the course of Q2.
Part of our inventory build was steel-related, where we brought in some inventory in Q1 ahead of price increases in April, but we'll continue to be very focused on working capital. We said, even with the $40 million drag in Q1, we expect to be roughly working capital neutral by the end of the year. And so we expect to make part of that back up in Q2, 3, and 4. So, by the end of the year, we'd be back to roughly neutral.
Julio Romero -- Sidoti -- Analyst
Got it. And I guess my second question, I know this has been asked kind of, couple of different ways already, but in the barge business, in a scenario where steel remains elevated for a 12 month to 18 month period, I mean how do barge -- how does dry barge trend there? I mean do those inquiries, do people eventually give up and convert that into orders, or conversely, do inquiries go away, if you could just talk about a scenario where if the steel remains elevated, how dry barge orders play out? Thank you.
Antonio Carrillo -- President and Chief Executive Officer
Yeah. Julio, this is Antonio. And we have received orders at this steel price. So it's -- we do, we do have orders coming in, they're just not very large. The first quarter for example was really bad for barge orders. Most of the things that you saw in the order, in the numbers are components, not barges. But in the second quarter, we continue to receive orders late on that with a certain frequency. So, it's not completely dead. As I mentioned before, I think the big positive thing going on for us, is that markets are recovering.
What you have to watch for is the health of our customers. And as long as our customers are healthy, they're going to do the best thing for their business, and what their businesses focus is on moving these products across the river system. So, if our customers are healthy, and you see utilization improving, you see the grain markets being very healthy, you're seeing seed grain exports growing, that's going to be the most important decision-making point for them.
Now, I think lower steel prices absolutely will help, but I think at some point, our customers will start making decisions with or without the price reductions, when will that be? I cannot tell you. But I'm -- I don't think this is a 18-month, let's say, dry spell for our barge business, when we had to completely shut down, but we'll keep an eye and we have flexibility, we can still lower our production rates, we have production capacity to ramp up in case these things improve also. So over the last few years, we've invested in our plants and we can ramp up and down production faster and better and I think we're in good shape. So I just hope steel prices moderate and we can start talking about how to increase capacity.
Operator
We will take our next question from Justin Bergner from G.research. Your line is open.
Justin Bergner -- G.research -- Analyst
Good morning, Antonio. Good morning, Scott.
Scott Beasley -- Arcosa, Inc.
Good morning.
Justin Bergner -- G.research -- Analyst
So, in terms of the guidance, just to clarify some of the sort of small puts and takes, was the $3.9 million gain and sort of an equivalent amount of the winter storm headwinds, it looks like anticipated when you gave the guidance back end of February or are either of those elements new, as part of the revised guidance?
Scott Beasley -- Arcosa, Inc.
Sure, Justin. This is Scott. I'd say neither were incorporated in the guidance that we gave in February, but they roughly offset each other. So in Q1, we had about $4 million to $5 million of storm impact. We had the $4 million gain for the non-operating plant. So we still, that's one of the reasons we still feel like our full- year guidance range is intact, because they roughly offset each other.
Justin Bergner -- G.research -- Analyst
Okay, great. And then bigger picture, the deals that remain open to, are these more in the vein of bolt-ons, the StonePoint deal, or would you consider another deal at or near the size of StonePoint in the quarters ahead?
Antonio Carrillo -- President and Chief Executive Officer
We are -- as Scott mentioned, we have some room in our, in our leverage, but we don't have an enormous amount of room. So right now we don't have room to do another StonePoint size deal. So, we're going to remain disciplined. I think what you should expect to see is things that would enhance our current platforms that we've acquired over the last few years, that's what we're focusing on. StonePoint brought some ideas, Cherry brought some ideas. So, that's what we're focusing on and it would be more bolt-on, there is some smaller and some bigger bolt-ons, but it would be some, let's say, additions to our platforms.
Justin Bergner -- G.research -- Analyst
Okay, great. And then just lastly, I know you were asked about infrastructure and it didn't seem like there was anything too surprising in the bill versus sort of whisper commentary we had heard beforehand, but is there any part of the bill or any part of your business where sort of the language or amounts in the draft proposal positively or negatively surprised, where you thought things would turn out?
Antonio Carrillo -- President and Chief Executive Officer
No, I think we -- it was more or less, as you said it in line with everything we had heard or expected. Probably the only thing we've seen some -- a more bullish language in short-term deployment of capital for some transmission lines for renewables, that's the only thing that has been probably more or expected. I'm not sure how that happens, how that translates into actual work and I think there's a lot of things behind it yet, but that's probably the only thing that was a little more bullish than we expected.
Justin Bergner -- G.research -- Analyst
Okay. Are you referring to the DOE loans in terms of the short-term [Speech Overlap] renewables?
Antonio Carrillo -- President and Chief Executive Officer
Yes.
Justin Bergner -- G.research -- Analyst
Okay. Great. Thanks and good luck for the rest of the year.
Antonio Carrillo -- President and Chief Executive Officer
Thank you very much.
Operator
We will take our next question from Stefanos Christ from CJS Securities.
Stefanos Christ -- CJS Securities -- Analyst
First, can we talk about the difference in the legacy natural aggregates versus the specialty materials and maybe why specialty was down year-over-year? Is that just the geographic mix, or is there something else driving that?
Scott Beasley -- Arcosa, Inc.
Yeah, sure. This is Scott. The legacy business was up strongly, really in all three parts of the end market, where very strong infrastructure-driven work, strong residential demand, a lot of that's been driven by de-urbanization and then the non-residential demand has been strong too, with a lot of distribution center and data center work. So that's all been healthy. Specialty products has a bit more building products focused and we've talked about, there was destocking throughout the supply chain last year, there were a number of construction delays throughout the supply chain. That was therefore impacted more by COVID and has been slower to recover. We'd say the good news is, in Q1, our lightweight business was at or above where it was in the pre-pandemic Q1 of 2020. So, that gives us increased confidence that we're coming out of a lot of the worst COVID impacts and that's one of the reasons we're particularly optimistic about this year.
Antonio Carrillo -- President and Chief Executive Officer
Stefanos, let me just add one thing. Our specialty materials in the first quarter was, where we had the biggest impact from the storm in terms of natural gas prices. It's -- it was -- we have a plant that normally had a $30,000 bill and it went to hundreds of thousands. So it's -- we have a few of those and specialty materials is where we felt the biggest impact from the natural gas side.
Stefanos Christ -- CJS Securities -- Analyst
Got it. Thank you. I mean, just one more, back on barge, with steel prices so high and barge utilization low, are you seeing any customers scrapping their older barges?
Antonio Carrillo -- President and Chief Executive Officer
Yes. I'm glad you asked that, because the good news is, I mean steel prices are going up but scrap prices are also very, very high. There has been times when we buy steel at the price to, you can buy scrap right now. So we are seeing scrap rates increase. Last year was a year where there were more barge scrap than built. So, and it's been already a few years, so that's good, that's why we are saying that the pent-up demand for barges is accumulating, the replacement cycle is coming, it's been delayed by several factors. We were very bullish a couple of years ago, when we opened a plant because we see it coming, we just didn't expect COVID to reduce the utilization so much, but -- and we didn't expect, of course, the steel prices to go like they are going. So, but these are temporary things and it's like everything we just have to wait a few quarters for this to pick up I think.
Stefanos Christ -- CJS Securities -- Analyst
Perfect. Thank you, Antonio. And thank you, Scott.
Antonio Carrillo -- President and Chief Executive Officer
Thanks. It appears that we have no further questions at this time. I will now turn the program back over to Gail Peck for any additional or closing remarks.
Operator
Thank you, Mallory, and thank you, everyone, for joining us today. We look forward to speaking with you again next quarter. [Operator Closing Remarks]
Duration: 42 minutes
Call participants:
Gail M. Peck -- SVP, Finance & Treasurer
Antonio Carrillo -- President and Chief Executive Officer
Scott Beasley -- Arcosa, Inc.
Ian Zaffino -- Oppenheimer -- Analyst
Brent Thielman -- D.A. Davidson -- Analyst
Julio Romero -- Sidoti -- Analyst
Justin Bergner -- G.research -- Analyst
Stefanos Christ -- CJS Securities -- Analyst
More ACA analysis
All earnings call transcripts
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, Inc (NYSE: ACA) Q1 2021 Earnings Call Apr 30, 2021, 8:30 a.m. Davidson -- Analyst Julio Romero -- Sidoti -- Analyst Justin Bergner -- G.research -- Analyst Stefanos Christ -- CJS Securities -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. To that end, we are pleased to have a robust pipeline and will continue to apply a rigorous analysis to every new project, organic and inorganic, and to evaluate whether that particular investment meets our strict requirements for long-term strategic value and return potential. | Davidson -- Analyst Julio Romero -- Sidoti -- Analyst Justin Bergner -- G.research -- Analyst Stefanos Christ -- CJS Securities -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Arcosa, Inc (NYSE: ACA) Q1 2021 Earnings Call Apr 30, 2021, 8:30 a.m. Utilization rates in the liquid barge market, while improving, remain low and high steel prices have impacted demand for dry cargo barges. | Arcosa, Inc (NYSE: ACA) Q1 2021 Earnings Call Apr 30, 2021, 8:30 a.m. Davidson -- Analyst Julio Romero -- Sidoti -- Analyst Justin Bergner -- G.research -- Analyst Stefanos Christ -- CJS Securities -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Yeah, I'd say, like I said in my prepared remarks, we gave the range of $35 million to $40 million of Transportation EBITDA for the full year, and given the steel prices have continued to move higher in the last eight weeks since we talked, we said we expect to be now at the low end of that range, closer to $35 million and $40 million. | Davidson -- Analyst Julio Romero -- Sidoti -- Analyst Justin Bergner -- G.research -- Analyst Stefanos Christ -- CJS Securities -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Arcosa, Inc (NYSE: ACA) Q1 2021 Earnings Call Apr 30, 2021, 8:30 a.m. As Scott mentioned that in his remarks, that business has performed very well, we've been able to pass the steel prices to customers and there is significant demand for tanks right now, which is not normal. |
35412.0 | 2021-04-13 00:00:00 UTC | Arcosa, Inc. (ACA) Ex-Dividend Date Scheduled for April 14, 2021 | ACA | https://www.nasdaq.com/articles/arcosa-inc.-aca-ex-dividend-date-scheduled-for-april-14-2021-2021-04-13 | nan | nan | Arcosa, Inc. (ACA) will begin trading ex-dividend on April 14, 2021. A cash dividend payment of $0.05 per share is scheduled to be paid on April 30, 2021. Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 10th quarter that ACA has paid the same dividend. At the current stock price of $63.25, the dividend yield is .32%.
The previous trading day's last sale of ACA was $63.25, representing a -7.61% decrease from the 52 week high of $68.46 and a 103.83% increase over the 52 week low of $31.03.
ACA is a part of the Capital Goods sector, which includes companies such as Parker-Hannifin Corporation (PH) and Baker Hughes Company (BKR). ACA's current earnings per share, an indicator of a company's profitability, is $2.18. Zacks Investment Research reports ACA's forecasted earnings growth in 2021 as -14.9%, compared to an industry average of 12.1%.
For more information on the declaration, record and payment dates, visit the ACA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ACA through an Exchange Traded Fund [ETF]?
The following ETF(s) have ACA as a top-10 holding:
Opus Small Cap Value ETF (OSCV).
The top-performing ETF of this group is OSCV with an increase of 25.08% over the last 100 days. It also has the highest percent weighting of ACA at 0.02%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ACA's forecasted earnings growth in 2021 as -14.9%, compared to an industry average of 12.1%. For more information on the declaration, record and payment dates, visit the ACA Dividend History page. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. ACA's current earnings per share, an indicator of a company's profitability, is $2.18. Arcosa, Inc. (ACA) will begin trading ex-dividend on April 14, 2021. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the ACA Dividend History page. The following ETF(s) have ACA as a top-10 holding: Opus Small Cap Value ETF (OSCV). | ACA's current earnings per share, an indicator of a company's profitability, is $2.18. Arcosa, Inc. (ACA) will begin trading ex-dividend on April 14, 2021. Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. |
35413.0 | 2021-04-06 00:00:00 UTC | Is Arcosa (NYSE:ACA) A Risky Investment? | ACA | https://www.nasdaq.com/articles/is-arcosa-nyse%3Aaca-a-risky-investment-2021-04-06 | nan | nan | Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We can see that Arcosa, Inc. (NYSE:ACA) does use debt in its business. But is this debt a concern to shareholders?
When Is Debt Dangerous?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we examine debt levels, we first consider both cash and debt levels, together.
How Much Debt Does Arcosa Carry?
As you can see below, at the end of December 2020, Arcosa had US$256.2m of debt, up from US$104.3m a year ago. Click the image for more detail. However, it does have US$95.8m in cash offsetting this, leading to net debt of about US$160.4m.
NYSE:ACA Debt to Equity History April 6th 2021
How Healthy Is Arcosa's Balance Sheet?
The latest balance sheet data shows that Arcosa had liabilities of US$310.3m due within a year, and liabilities of US$444.2m falling due after that. Offsetting this, it had US$95.8m in cash and US$260.2m in receivables that were due within 12 months. So its liabilities total US$398.5m more than the combination of its cash and short-term receivables.
Given Arcosa has a market capitalization of US$3.17b, it's hard to believe these liabilities pose much threat. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse.
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
Arcosa has a low net debt to EBITDA ratio of only 0.58. And its EBIT covers its interest expense a whopping 16.1 times over. So you could argue it is no more threatened by its debt than an elephant is by a mouse. The good news is that Arcosa has increased its EBIT by 7.1% over twelve months, which should ease any concerns about debt repayment. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Arcosa can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we always check how much of that EBIT is translated into free cash flow. Over the last three years, Arcosa actually produced more free cash flow than EBIT. There's nothing better than incoming cash when it comes to staying in your lenders' good graces.
Our View
Arcosa's interest cover suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper. And that's just the beginning of the good news since its conversion of EBIT to free cash flow is also very heartening. Looking at the bigger picture, we think Arcosa's use of debt seems quite reasonable and we're not concerned about it. After all, sensible leverage can boost returns on equity. Of course, we wouldn't say no to the extra confidence that we'd gain if we knew that Arcosa insiders have been buying shares: if you're on the same wavelength, you can find out if insiders are buying by clicking this link.
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We can see that Arcosa, Inc. (NYSE:ACA) does use debt in its business. NYSE:ACA Debt to Equity History April 6th 2021 How Healthy Is Arcosa's Balance Sheet? However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. | We can see that Arcosa, Inc. (NYSE:ACA) does use debt in its business. NYSE:ACA Debt to Equity History April 6th 2021 How Healthy Is Arcosa's Balance Sheet? We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). | We can see that Arcosa, Inc. (NYSE:ACA) does use debt in its business. NYSE:ACA Debt to Equity History April 6th 2021 How Healthy Is Arcosa's Balance Sheet? When we examine debt levels, we first consider both cash and debt levels, together. | We can see that Arcosa, Inc. (NYSE:ACA) does use debt in its business. NYSE:ACA Debt to Equity History April 6th 2021 How Healthy Is Arcosa's Balance Sheet? The latest balance sheet data shows that Arcosa had liabilities of US$310.3m due within a year, and liabilities of US$444.2m falling due after that. |
35414.0 | 2021-03-23 00:00:00 UTC | Arcosa Agrees To Acquire StonePoint Materials | ACA | https://www.nasdaq.com/articles/arcosa-agrees-to-acquire-stonepoint-materials-2021-03-23 | nan | nan | Infrastructure associated products and solutions provider Arcosa, Inc. has signed a definitive agreement to acquire StonePoint Ultimate Holding for a total cash consideration of $375 million. The transaction is expected to close in April 2021.
Arcosa (ACA) President and Chief Executive Officer, Antonio Carrillo said, “StonePoint represents an outstanding strategic fit for Arcosa. The transaction aligns with Arcosa’s strategy to expand our Aggregates business in our current footprint and to enter new, attractive geographies.”
StonePoint CEO Colin Oerton said, “Arcosa will be an excellent long-term owner of the StonePoint platform and will be able to further accelerate the growth of the business.”
The acquisition is expected to be accretive to Arcosa’s bottom line in 2021 and it plans to fund the transaction with a combination of cash and borrowings from its $500 million credit facility. It expects to refinance the borrowings with long term debt.
On the back of operating synergies and a recovery in the construction market, StonePoint is expected to generate adjusted EBITDA of $30 million in 2021 and $33 million by 2022.
Furthermore, about 80% of StonePoint’s EBITDA comes from aggregates with the remainder coming from asphalt and other services. (See Arcosa stock analysis on TipRanks)
On March 22, Oppenheimer analyst Ian Zaffino reiterated a Buy rating on the stock and raised the price target to $70 (16.8% upside potential) from $60. Commenting on the StonePoint acquisition, Zaffino said, “The acquisition complements ACA’s existing aggregates/materials exposure, strengthens its footprint in Texas and Louisiana and expands its geographic reach into new markets, including Tennessee, Kentucky, Pennsylvania, and West Virginia.”
The other analyst covering the stock, Sidoti’s Julio Romero has a Hold rating on the stock with a price target of $57. The two ratings combine to a Moderate Buy consensus rating and an average analyst price target of $63.50 (6% upside potential). Shares have rallied about 96% over the past year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Commenting on the StonePoint acquisition, Zaffino said, “The acquisition complements ACA’s existing aggregates/materials exposure, strengthens its footprint in Texas and Louisiana and expands its geographic reach into new markets, including Tennessee, Kentucky, Pennsylvania, and West Virginia.” The other analyst covering the stock, Sidoti’s Julio Romero has a Hold rating on the stock with a price target of $57. Arcosa (ACA) President and Chief Executive Officer, Antonio Carrillo said, “StonePoint represents an outstanding strategic fit for Arcosa. Infrastructure associated products and solutions provider Arcosa, Inc. has signed a definitive agreement to acquire StonePoint Ultimate Holding for a total cash consideration of $375 million. | Arcosa (ACA) President and Chief Executive Officer, Antonio Carrillo said, “StonePoint represents an outstanding strategic fit for Arcosa. Commenting on the StonePoint acquisition, Zaffino said, “The acquisition complements ACA’s existing aggregates/materials exposure, strengthens its footprint in Texas and Louisiana and expands its geographic reach into new markets, including Tennessee, Kentucky, Pennsylvania, and West Virginia.” The other analyst covering the stock, Sidoti’s Julio Romero has a Hold rating on the stock with a price target of $57. (See Arcosa stock analysis on TipRanks) On March 22, Oppenheimer analyst Ian Zaffino reiterated a Buy rating on the stock and raised the price target to $70 (16.8% upside potential) from $60. | Commenting on the StonePoint acquisition, Zaffino said, “The acquisition complements ACA’s existing aggregates/materials exposure, strengthens its footprint in Texas and Louisiana and expands its geographic reach into new markets, including Tennessee, Kentucky, Pennsylvania, and West Virginia.” The other analyst covering the stock, Sidoti’s Julio Romero has a Hold rating on the stock with a price target of $57. Arcosa (ACA) President and Chief Executive Officer, Antonio Carrillo said, “StonePoint represents an outstanding strategic fit for Arcosa. The transaction aligns with Arcosa’s strategy to expand our Aggregates business in our current footprint and to enter new, attractive geographies.” StonePoint CEO Colin Oerton said, “Arcosa will be an excellent long-term owner of the StonePoint platform and will be able to further accelerate the growth of the business.” The acquisition is expected to be accretive to Arcosa’s bottom line in 2021 and it plans to fund the transaction with a combination of cash and borrowings from its $500 million credit facility. | Arcosa (ACA) President and Chief Executive Officer, Antonio Carrillo said, “StonePoint represents an outstanding strategic fit for Arcosa. Commenting on the StonePoint acquisition, Zaffino said, “The acquisition complements ACA’s existing aggregates/materials exposure, strengthens its footprint in Texas and Louisiana and expands its geographic reach into new markets, including Tennessee, Kentucky, Pennsylvania, and West Virginia.” The other analyst covering the stock, Sidoti’s Julio Romero has a Hold rating on the stock with a price target of $57. Infrastructure associated products and solutions provider Arcosa, Inc. has signed a definitive agreement to acquire StonePoint Ultimate Holding for a total cash consideration of $375 million. |
35415.0 | 2021-03-15 00:00:00 UTC | ACA Crosses Above Average Analyst Target | ACA | https://www.nasdaq.com/articles/aca-crosses-above-average-analyst-target-2021-03-15 | nan | nan | In recent trading, shares of Arcosa Inc (Symbol: ACA) have crossed above the average analyst 12-month target price of $65.50, changing hands for $66.37/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 4 different analyst targets contributing to that average for Arcosa Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $55.00. And then on the other side of the spectrum one analyst has a target as high as $70.00. The standard deviation is $7.141.
But the whole reason to look at the average ACA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ACA crossing above that average target price of $65.50/share, investors in ACA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $65.50 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Arcosa Inc:
RECENT ACA ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 2 2 2 2
Buy ratings: 0 0 0 0
Hold ratings: 3 2 2 1
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 2.2 2.0 2.0 1.67
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ACA — FREE.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of Arcosa Inc (Symbol: ACA) have crossed above the average analyst 12-month target price of $65.50, changing hands for $66.37/share. But the whole reason to look at the average ACA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ACA crossing above that average target price of $65.50/share, investors in ACA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $65.50 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of Arcosa Inc (Symbol: ACA) have crossed above the average analyst 12-month target price of $65.50, changing hands for $66.37/share. But the whole reason to look at the average ACA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ACA crossing above that average target price of $65.50/share, investors in ACA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $65.50 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | And so with ACA crossing above that average target price of $65.50/share, investors in ACA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $65.50 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Arcosa Inc (Symbol: ACA) have crossed above the average analyst 12-month target price of $65.50, changing hands for $66.37/share. But the whole reason to look at the average ACA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. | In recent trading, shares of Arcosa Inc (Symbol: ACA) have crossed above the average analyst 12-month target price of $65.50, changing hands for $66.37/share. But the whole reason to look at the average ACA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ACA crossing above that average target price of $65.50/share, investors in ACA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $65.50 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? |
35416.0 | 2021-03-09 00:00:00 UTC | Pre-Market Most Active for Mar 9, 2021 : ANPC, SQQQ, SOS, NIO, AMC, QQQ, AAPL, PLTR, EXPR, GME, TQQQ, ACAD | ACA | https://www.nasdaq.com/articles/pre-market-most-active-for-mar-9-2021-%3A-anpc-sqqq-sos-nio-amc-qqq-aapl-pltr-expr-gme-tqqq | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 263.42 to 12,562.5. The total Pre-Market volume is currently 31,114,313 shares traded.
The following are the most active stocks for the pre-market session:
AnPac Bio-Medical Science Co., Ltd. (ANPC) is +3.58 at $9.38, with 4,785,042 shares traded. ANPC's current last sale is 117.25% of the target price of $8.
ProShares UltraPro Short QQQ (SQQQ) is -1.08 at $15.24, with 3,695,588 shares traded. This represents a 29.59% increase from its 52 Week Low.
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NIO Inc. (NIO) is +1.91 at $37.12, with 2,530,916 shares traded. NIO's current last sale is 57.86% of the target price of $64.15.
AMC Entertainment Holdings, Inc. (AMC) is +0.11 at $9.40, with 2,335,086 shares traded.AMC is scheduled to provide an earnings report on 3/10/2021, for the fiscal quarter ending Dec2020. The consensus earnings per share forecast is -2.89 per share, which represents a 35 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is +6.63 at $306.57, with 2,067,485 shares traded. This represents a 85.88% increase from its 52 Week Low.
Apple Inc. (AAPL) is +2.37 at $118.73, with 2,000,184 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Palantir Technologies Inc. (PLTR) is +0.92 at $23.44, with 1,939,873 shares traded. PLTR's current last sale is 156.27% of the target price of $15.
Express, Inc. (EXPR) is -0.15 at $3.88, with 1,771,348 shares traded.EXPR is scheduled to provide an earnings report on 3/10/2021, for the fiscal quarter ending Jan2021. The consensus earnings per share forecast is -0.85 per share, which represents a 19 percent increase over the EPS one Year Ago
Gamestop Corporation (GME) is +22.4 at $216.90, with 1,657,996 shares traded. GME's current last sale is 1,549.29% of the target price of $14.
ProShares UltraPro QQQ (TQQQ) is +5.06 at $81.66, with 1,216,971 shares traded. This represents a 406.1% increase from its 52 Week Low.
ACADIA Pharmaceuticals Inc. (ACAD) is -19.22 at $26.56, with 1,176,301 shares traded. As reported in the last short interest update the days to cover for ACAD is 7.078851; this calculation is based on the average trading volume of the stock.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As reported in the last short interest update the days to cover for ACAD is 7.078851; this calculation is based on the average trading volume of the stock. ACADIA Pharmaceuticals Inc. (ACAD) is -19.22 at $26.56, with 1,176,301 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". | ACADIA Pharmaceuticals Inc. (ACAD) is -19.22 at $26.56, with 1,176,301 shares traded. As reported in the last short interest update the days to cover for ACAD is 7.078851; this calculation is based on the average trading volume of the stock. AMC Entertainment Holdings, Inc. (AMC) is +0.11 at $9.40, with 2,335,086 shares traded.AMC is scheduled to provide an earnings report on 3/10/2021, for the fiscal quarter ending Dec2020. | ACADIA Pharmaceuticals Inc. (ACAD) is -19.22 at $26.56, with 1,176,301 shares traded. As reported in the last short interest update the days to cover for ACAD is 7.078851; this calculation is based on the average trading volume of the stock. NIO Inc. (NIO) is +1.91 at $37.12, with 2,530,916 shares traded. | As reported in the last short interest update the days to cover for ACAD is 7.078851; this calculation is based on the average trading volume of the stock. ACADIA Pharmaceuticals Inc. (ACAD) is -19.22 at $26.56, with 1,176,301 shares traded. ANPC's current last sale is 117.25% of the target price of $8. |
35417.0 | 2021-03-02 00:00:00 UTC | Validea Kenneth Fisher Strategy Daily Upgrade Report - 3/2/2021 | ACA | https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-3-2-2021-2021-03-02 | nan | nan | The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
ARCBEST CORP (ARCB) is a small-cap growth stock in the Trucking industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ArcBest Corporation is a holding company of businesses providing integrated logistics solutions. The Company operates through three segments: Asset-Based, which consists of ABF Freight System, Inc. and other subsidiaries; ArcBest, which represents the consolidation of the operations of the Premium Logistics, Transportation Management and Household Goods Moving Services segments, and FleetNet, which includes the results of operations of FleetNet America, Inc. (FleetNet). Its Asset-Based operations offer transportation of general commodities through standard, time-critical, expedited and guaranteed LTL services-nationally and regionally. Its ArcBest segment includes truckload, expedite, international, warehousing, freight transportation, management services and moving services. Its FleetNet segment provides roadside assistance and maintenance management services for commercial vehicles to customers in the United States and Canada through a network of third-party service providers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
Detailed Analysis of ARCBEST CORP
Full Guru Analysis for ARCB
Full Factor Report for ARCB
ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arcosa, Inc. is focused on manufacturing and producing infrastructure-related products and services. The Company provides its products to a spectrum of markets throughout construction, energy, and transportation. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. The Construction Products Group segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for infrastructure-related projects. The Energy Equipment Group segment manufactures and sells products for energy-related businesses, including structural wind towers, steel utility structures for electricity transmission and distribution, and storage and distribution containers. The Transportation Products Group segment manufactures and sells products for the inland waterway and rail transportation industries including barges, barge-related products, axles, and couplers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS
Detailed Analysis of ARCOSA INC
Full Guru Analysis for ACA
Full Factor Report for ACA
ALLSCRIPTS HEALTHCARE SOLUTIONS INC (MDRX) is a mid-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Allscripts Healthcare Solutions, Inc. is a healthcare information technology solutions provider. It operates through two segments: Core Clinical and Financial Solutions, and Data, Analytics and Care Coordination. The Core Clinical and Financial Solutions segment is engaged in the patient engagement, integrated clinical software applications and financial management solutions, which primarily includes electronic health record-related software, financial and practice management software, related installation, support and maintenance, outsourcing, private cloud hosting and revenue cycle management. The Data, Analytics and Care Coordination segment is engaged in the care coordination, practice reimbursement and payer and life sciences solutions, which are mainly targeted at hospitals, health systems, other care facilities, payers, life sciences companies and other key healthcare stakeholders.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS
Detailed Analysis of ALLSCRIPTS HEALTHCARE SOLUTIONS INC
Full Guru Analysis for MDRX
Full Factor Report for MDRX
More details on Validea's Kenneth Fisher strategy
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of ARCBEST CORP Full Guru Analysis for ARCB Full Factor Report for ARCB ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA ALLSCRIPTS HEALTHCARE SOLUTIONS INC (MDRX) is a mid-cap growth stock in the Software & Programming industry. Its Asset-Based operations offer transportation of general commodities through standard, time-critical, expedited and guaranteed LTL services-nationally and regionally. | Detailed Analysis of ARCBEST CORP Full Guru Analysis for ARCB Full Factor Report for ARCB ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA ALLSCRIPTS HEALTHCARE SOLUTIONS INC (MDRX) is a mid-cap growth stock in the Software & Programming industry. Detailed Analysis of ALLSCRIPTS HEALTHCARE SOLUTIONS INC Full Guru Analysis for MDRX Full Factor Report for MDRX More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. | Detailed Analysis of ARCBEST CORP Full Guru Analysis for ARCB Full Factor Report for ARCB ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA ALLSCRIPTS HEALTHCARE SOLUTIONS INC (MDRX) is a mid-cap growth stock in the Software & Programming industry. The Company operates through three segments: Asset-Based, which consists of ABF Freight System, Inc. and other subsidiaries; ArcBest, which represents the consolidation of the operations of the Premium Logistics, Transportation Management and Household Goods Moving Services segments, and FleetNet, which includes the results of operations of FleetNet America, Inc. (FleetNet). | Detailed Analysis of ARCBEST CORP Full Guru Analysis for ARCB Full Factor Report for ARCB ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA ALLSCRIPTS HEALTHCARE SOLUTIONS INC (MDRX) is a mid-cap growth stock in the Software & Programming industry. The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. |
35418.0 | 2021-02-27 00:00:00 UTC | Earnings Miss: Arcosa, Inc. Missed EPS By 9.4% And Analysts Are Revising Their Forecasts | ACA | https://www.nasdaq.com/articles/earnings-miss%3A-arcosa-inc.-missed-eps-by-9.4-and-analysts-are-revising-their-forecasts | nan | nan | It's been a sad week for Arcosa, Inc. (NYSE:ACA), who've watched their investment drop 13% to US$56.73 in the week since the company reported its annual result. Revenues of US$1.9b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$2.18, missing estimates by 9.4%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
NYSE:ACA Earnings and Revenue Growth February 27th 2021
Following the recent earnings report, the consensus from five analysts covering Arcosa is for revenues of US$1.88b in 2021, implying a noticeable 2.8% decline in sales compared to the last 12 months. Statutory earnings per share are forecast to decline 12% to US$1.95 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.93b and earnings per share (EPS) of US$2.40 in 2021. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
The average price target climbed 5.4% to US$63.75despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Arcosa at US$70.00 per share, while the most bearish prices it at US$48.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with the forecast 2.8% revenue decline a notable change from historical growth of 1.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Arcosa is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Arcosa going out to 2024, and you can see them free on our platform here.
You can also see whether Arcosa is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It's been a sad week for Arcosa, Inc. (NYSE:ACA), who've watched their investment drop 13% to US$56.73 in the week since the company reported its annual result. NYSE:ACA Earnings and Revenue Growth February 27th 2021 Following the recent earnings report, the consensus from five analysts covering Arcosa is for revenues of US$1.88b in 2021, implying a noticeable 2.8% decline in sales compared to the last 12 months. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. | NYSE:ACA Earnings and Revenue Growth February 27th 2021 Following the recent earnings report, the consensus from five analysts covering Arcosa is for revenues of US$1.88b in 2021, implying a noticeable 2.8% decline in sales compared to the last 12 months. It's been a sad week for Arcosa, Inc. (NYSE:ACA), who've watched their investment drop 13% to US$56.73 in the week since the company reported its annual result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. | NYSE:ACA Earnings and Revenue Growth February 27th 2021 Following the recent earnings report, the consensus from five analysts covering Arcosa is for revenues of US$1.88b in 2021, implying a noticeable 2.8% decline in sales compared to the last 12 months. It's been a sad week for Arcosa, Inc. (NYSE:ACA), who've watched their investment drop 13% to US$56.73 in the week since the company reported its annual result. Revenues of US$1.9b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$2.18, missing estimates by 9.4%. | NYSE:ACA Earnings and Revenue Growth February 27th 2021 Following the recent earnings report, the consensus from five analysts covering Arcosa is for revenues of US$1.88b in 2021, implying a noticeable 2.8% decline in sales compared to the last 12 months. It's been a sad week for Arcosa, Inc. (NYSE:ACA), who've watched their investment drop 13% to US$56.73 in the week since the company reported its annual result. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view. |
35419.0 | 2021-02-26 00:00:00 UTC | Arcosa, Inc (ACA) Q4 2020 Earnings Call Transcript | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-q4-2020-earnings-call-transcript-2021-02-26 | nan | nan | Image source: The Motley Fool.
Arcosa, Inc (NYSE: ACA)
Q4 2020 Earnings Call
Feb 26, 2021, 8:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen, and welcome to the Arcosa Inc. Fourth Quarter 2020 Earnings Conference Call. My name is Gretchen, and I will be your conference call coordinator today. As a reminder today's call is being recorded.
Now I would like to turn the call over to your host Gail Peck, SVP, Finance and Treasurer for Arcosa. Please Ms. Peck you may begin.
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Gail Peck -- Senior Vice President, Finance & Treasurer
Good morning, everyone. Thank you for joining our fourth quarter and full year 2020earnings call With me today are Antonio Carrillo, President and CEO; and Scott Beasley, CFO. A question-and-answer session will follow their prepared remarks. A copy of yesterday's press release and the slide presentation for this morning's call are posted at our Investor Relations website www.ir.arcosa.com.
A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website under the News & Events tab.
Today's comments and presentation slides contain financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation.
Let me also remind you that today's conference call contains forward-looking statement as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.
Please refer to the company's SEC filings for more information on these risks and uncertainties including the earnings press release we filed yesterday and our Form 10-K expected to be filed later today.
I would now like to turn the call over to Antonio.
Antonio Carrillo -- President & Chief Executive Officer
Thank you Gail. Good morning and thank you for joining us to discuss Arcosa's fourth quarter and 2020 results and the outlook for 2021.
Let me start with a few key messages on slide 4. First and foremost, we managed effectively through very difficult business conditions in 2020 and succeeded in posting record revenue and EBITDA for the year along with strong free cash flow generation. This performance underscores the resilience of our business model and the strength of our portfolio of products, which we continue to reposition around core infrastructure products. These results could not have been possible without the tremendous effort of the Arcosa team. The entire organization came together to enable us to stay operational throughout the worst days of the pandemic, while adhering to strict health and safety protocols.
It is important to look back at the COVID case statistics across the country from October to January and to realize that the fourth quarter, we operated in an environment that was extremely -- with extremely high case counts and significant absenteeism due to quarantine protocols. There is no question that COVID-19 had an impact on our business. But we're getting through it together and we're able to continue to grow organically and via acquisitions despite the challenges of 2020.
Second, we continue to make progress building a strong cash culture. Our 2020 free cash flow of $178 million marks another year of well over 100% conversion.
Third, we took additional step toward repositioning Arcosa around more stable infrastructure products. We did this through continued organic investments and acquisitions in our key growth businesses; Construction Products and Engineered Structures. As a result, we added to our resiliency and our portfolio significantly less cyclical than we were when we became an independent company in 2018.
For 2021, we are planning for a modest decline in year-over-year EBITDA from our current portfolio of businesses excluding any upside from potential acquisitions. The underlying assumptions are for continued strength in our Construction Products and Engineered Structures business. We also see lower wind tower deliveries and a slow year in barge business resulting from low utilization rates in liquid barges and high steel prices impacting dry cargo barges. We plan to continue to use our strong balance sheet to invest in organic growth initiatives and in acquisitions in our growth markets. At the same time, we're focused on managing our operating expenses and our capital expenditures particularly in the businesses that are seeing pressure.
Shifting to slide 9. You can see an overview of our fourth quarter results. Our EBITDA increased 6%, outpacing revenue growth for the quarter. We benefit from higher margins at Cherry and improvements in our legacy aggregates business.
Please turn to slide 10. For the full year, we achieved another year of double-digit revenue and EBITDA growth, while expanding margins. Our impressive 2020 performance was driven by accretive acquisitions and operational improvements in Construction Products and strong performance in our barge business.
I will now turn over the call to Scott to discuss our segment performance and then I will return to update you on our outlook for the business. Scott?
Scott Beasley -- Chief Financial Officer
Thank you, Antonio and good morning, everyone. I'll start on slide 11 and review our segment results from the fourth quarter and the full year. In the fourth quarter, Construction Products revenue grew 46% to $149.1 million and adjusted EBITDA increased 73% to $31 million. Segment EBITDA margin of 20.8% was up over 300 basis points from last year's fourth quarter, continuing a strong trend of margin improvement that we maintained all year.
A few highlights from the quarter. Volumes in our legacy natural aggregates business were up significantly, driven by higher infrastructure-related work in Texas and the benefit of several bolt-on acquisitions. We continued our trend of lower cost per ton through a combination of operating efficiencies, lower maintenance costs and lower fuel costs.
Similar to the last several quarters, our mix shift resulted in lower ASP, but gross profit per ton was up nicely from that mix shift and an improved cost structure. Our two recycled aggregates platforms Cherry in Houston and Strata in Dallas performed well during the quarter, with healthy infrastructure and residential construction activity in those two key Texas MSAs.
Additionally, two of our businesses that were the most impacted by COVID, specialty materials and trench shoring products both showed signs of stabilizing in the fourth quarter after being impacted by slowdowns in the second and third quarters.
Lightweight aggregates volumes were up versus the fourth quarter of 2019. Shoring products volumes were lower, but EBITDA was flat as we were able to improve margins through cost reductions. We still have several markets that were weaker than in Q4 of 2019 most notably, oil and gas, but we are optimistic that recent increases in oil prices and the small pickup in drilling activity could yield benefits later in 2021.
Overall, our full year Construction Products growth was a 2020 highlight for Arcosa. We achieved 50% adjusted EBITDA growth through a combination of well-performing acquisitions and margin expansion in our legacy businesses from pricing growth and operating improvements. Our full year segment margin of 23.3% was up almost 250 basis points even with COVID-related downturns in several businesses.
The growth of our Construction Products segment has helped improve the resilience of our overall portfolio and will continue to be a focus of our capital deployment both organically and through acquisitions.
Turning to Engineered Structures on slide 12. Revenue in Q4 was down slightly to $209 million and adjusted EBITDA was down 16% to $23.3 million. Our revenue decline was in line with our expectations as we idled one of our wind tower plants in the fourth quarter to retool for larger wind towers. That project has progressed well and we are ramping back up toward full production.
Our 11.1% EBITDA margin in the quarter was below our expected 12% to 13% range because of operating challenges in our utility structures business as we had roughly $2.5 million of start-up expenses at our reopened facility in Mexico and COVID-related impacts in several facilities. We are on a path to return to a 12% to 13% EBITDA margin for the full year in 2021 with progressive improvement throughout the year as we ramp up our new plant.
Demand across transmission, wind towers, telecom and traffic structures has remained strong with healthy levels of inquiries across all of those product lines. Additionally, our storage tank product lines in the United States and Mexico had very strong quarters led by healthy demand for residential and commercial propane tanks in Q4.
For the full year of 2020, revenue in the segment was up 5% to $878 million and EBITDA margin was at the high end of our 12% to 13% guidance range. So it was an overall positive year for these businesses. We expanded our product lines, grew revenue and reduced working capital significantly.
Moving to transportation products on slide 13. Both revenue and adjusted EBITDA were lower than the fourth quarter of 2019 as we strategically extended our barge backlog to gain time for the barge market to recover.
In the fourth quarter, we also incurred a non-cash impairment charge of $4.5 million related to scrapping unusable barge manufacturing equipment that was purchased as part of a 2018 acquisition.
For the full year, revenue was flat and adjusted EBITDA was up 22% to $78 million, despite weak demand from rail components all year. We have reduced our capacity and cost structure in each of these businesses, but may have to take additional actions if barge demand does not improve.
While we expect 2021 to be a down year in barge and roughly flat in rail components, the Transportation Products segment was a great source of cash to fund other growth projects across Arcosa in 2020 and we expect it to be a healthy cash generator in 2021 as well.
Turning to Page 14. Our free cash flow of $178 million was another highlight of our 2020 performance. It was the second straight year of free cash flow conversion well over 100% of net income and demonstrates our continued progress building a cash culture.
We made progress on receivables, payables and inventory throughout the year and reduced our working capital by roughly 20 days from the end of 2019. This excellent free cash flow has helped us fund disciplined growth, while maintaining a healthy balance sheet. We ended Q4 with a 0.5 net debt-to-EBITDA ratio, which gives us significant capacity to continue funding our growth strategy.
I'll finish with a few financial points on page 15. Our Q4 2020 corporate expenses were consistent with our normal run rate of $13 million to $14 million per quarter, after adding back $1.6 million of acquisition-related expenses, primarily from the Strata acquisition. We expect a similar level of $13 million to $14 million per quarter of corporate expenses in 2021.
We had another net loss of $3.8 million in the quarter, related to a reconciliation between U.S. and Mexico tax rates on foreign currency fluctuation throughout the year. This was offset by a lower tax rate, so the net impact on EPS was insignificant. We finished the year with a tax rate of approximately 23% and expect a tax rate of 23% to 25% in 2021.
Finally, we finished 2020 with capital expenditures of $82 million. We expect to increase that to a range of $100 million to $110 million in 2021, made up of roughly $80 million for maintenance CapEx, plus $20 million to $30 million of organic projects, primarily growth projects in Aggregates and Engineered Structures.
Two final notes on 2021. As we mentioned in yesterday's release, the February 2021 winter storm in Texas and the broader Southern United States will impact our Q1 performance, as we lost more than one week of production across a significant part of our operating footprint.
The storms also created production issues in some steel mills and we are still evaluating the potential delays in our supply chain that this could create. In terms of our plants and operations, we did not suffer major damage and have restored operations in most of our footprint.
Second, we expect Q1 to be the lowest quarter of the year for us, as we deal with normal seasonality in our Construction Products businesses, plus the ramp-up we have described in Engineered Structures. We estimate that approximately 18% to 19% of our full year EBITDA will be in the first quarter.
I will now turn the call back over to Antonio for more on our 2021 outlook.
Antonio Carrillo -- President & Chief Executive Officer
Thank you, Scott. Before we go into our guidance and outlook I would like to take a moment to review with you our long-term strategy. If you remember, since we became an independent company, we defined Construction Products and Engineered Structures as the businesses where we were going to allocate capital for growth.
The growth capital would come from the rest of the Arcosa businesses. Over the last couple of years we have been able to allocate capital generated internally to reposition the portfolio completely.
As you can see on slide 17, Arcosa is a completely different company than it was in 2018. As our aggregates and specialty materials revenue has more than doubled in the last few years, Arcosa has become a more resilient less cyclical company.
As we look ahead into 2021, this strategy will not change. We will continue to allocate capital to Construction Products and Engineered Structures by generating cash in the rest of the businesses. We think 2021 will be a year where Arcosa repositioning becomes even more apparent.
As you will see in our guidance in 2021, we expect a good year for our growth businesses Construction Products and Engineered Structures. On the other hand, we believe our barge business will still generate good cash flow and EBITDA, but less than 2020.
What this means is that, instead of using cash flow coming from barge to support our growth, we will use our strong balance sheet. But this temporary delay in barge replacement will not slow down the transformation of Arcosa.
Now let's review our outlook on page 18. Our 2021 guidance is for revenue of $1.78 billion to $1.9 billion and EBITDA of $250 million to $270 million. While the upper end of the range represents stable year-over-year performance, this is really a story of growth for most of our business lines. The primary headwind is our barge business.
Before COVID, the fundamentals of the business showed the potential of a good recovery in the industry and we were actively booking strong orders. Once the pandemic started, consumption of oil and oil derivatives collapsed and liquid barge utilization dropped. On the dry cargo side, fundamentals during the last year have continued to improve. However, high steel prices are preventing customer inquiries from converting into orders.
Both the liquid and dry cargo replacement cycles remain fundamentally strong and we believe the slowdown will just take -- make the cycle stronger. Therefore, 2021 will be a year where we focus on maintaining our manufacturing flexibility to be able to serve our customers once demand picks up. As a result, our guidance incorporates Transportation segment adjusted EBITDA of $35 million to $40 million in 2021 down from $78 million in 2020.
Now to the business conditions. First our Construction Products segment continues to benefit from healthy demand. Our operations are located in high-growth markets where demand has -- had strong -- has held strong throughout the pandemic. Most notably, Texas represents 60% of the segment's volumes. While we have observed softness in non-residential activity, infrastructure spending has been stable and residential construction has provided a boost in demand.
We're encouraged by the pickup in demand at some of our specialty materials business that were more impacted by COVID as construction delays have subsided and customers have looked to replenish low inventory levels. While there is some COVID-related uncertainty on the balance, demand has improved.
The potential for a new long-term highway bill with spending above FAST Act levels or a federal infrastructure bill would be additive to our segment at outlook. However, there is generally a lag for this type of stimulus to impact our results.
We continue to be pleased with the addition of our recycled aggregate offering Cherry, which serves Houston; and the recently acquired Strata Materials which serves DFW. We believe having the ability to offer our customers complementary sets of natural and recycled aggregates is a strategic advantage as environmentally friendly construction takes on greater prominence.
We're working to expand into other geographic markets and replicate our current success. In addition to growth, we have been able to improve margins. The margin expansion resulted from the addition of higher-margin acquisitions and operating improvements we have made across the group and highlights the excellent strategic fit and successful integration of our acquisitions. On that topic, our acquisition pipeline is robust and we continue to engage with aggregates and specialty materials companies that will expand our geographic presence and our portfolio of product offerings.
Shifting to Engineered Structures. We have officially changed the name from Energy Equipment recognizing the diversified offerings in this segment following the acquisitions made in 2020. Our outlook for this business segment is positive overall as demand remains strong for utility structures in light of the long-term investing in renewables grid hardening and other reliability initiatives.
Also the traffic and telecom structure business we acquired last year have attractive long-term fundamentals supported by increased investment in the 5G rollout and healthy VOT spending in southeast markets that we serve. We're excited about the opportunity to expand this offering in other areas of our manufacturing footprint. Additionally, our storage tank production lines are seeing strong demand as they benefit from de-urbanization and strong residential construction.
Turning to wind. We're pleased to see a one-year extension of the PTC approved in December providing the industry another year of partial credit through 2025. While we do not expect an impact on short-term demand from this extension it is still good news for the industry and should provide some additional medium-term demand.
As we mentioned in the past we expect wind tower volumes to be down in 2021 as the industry transitions away from 100% PTC. However, we are encouraged by recent improvements in inquiry activity and have received additional orders during the first quarter of 2021.
We have always had a positive long-term outlook for wind energy. And given the priorities of the new administration our outlook is even more positive than it was a few months ago. Renewable energy is here to stay and will become even more important and Arcosa is in a great position to grow with this trend.
Now turning to Transportation. This is a segment that faces the greatest headwinds in 2021 owing largely to the COVID-led downturn in our barge business that we discussed before. However, we remain confident in our recovery as COVID cases go down and vaccines increase. While we do not expect significant demand improvements in 2021 long-term fundamentals and replacement needs remain unchanged. Therefore, short-term weakness means stronger replacement needs in the medium and long term.
Shifting to components. Demand continues to be impacted by soft railcar markets. But forecast suggests 2021 will mark a bottom and the rate of decline has slowed. Our Rail Components business has continued to expand markets into the industrial sector and should see a rebound later in the year as the rail market improves.
Turning to slide 19. You will see that taken together the fundamentals of all of our product offerings remain solid for the medium and long term and we see potential upside that could offset softness in some areas. As we reflect on 2020, three things are clear.
First, we continue to operate successfully despite a challenging operating environment and I'm extremely proud of how the Arcosa team performed during 2020. Second, we deployed capital into our growth business via organic initiatives and attractively priced acquisitions. With these initiatives we expanded our footprint and product lines and have created new growth platforms for Arcosa.
Third, our strategic repositioning into high growth less cyclical businesses have continued to take shape and add value. The main focus of our growth has been our Construction Products business, which has almost doubled its EBITDA since the time of our separation.
As you can see from our 2020 results, this repositioning has made Arcosa far more resilient to economic cycles than we were just a few years ago. In 2021, we will continue to allocate capital in line with our long-term plan to grow in attractive markets where we can have competitive advantages, reduce the complexity and cyclicality of our business improve our long-term returns and integrate ESG into our business.
To that end, following up on the detailed ESG update we published last August, we plan to publish our full year sustainability report in the first half of 2021, which will integrate the TCFD framework and supporting SASB metrics.
Operator, I would like to open the call to questions.
Questions and Answers:
Operator
[Operator Instructions] Our first question comes from Brent Thielman from D.A. Davidson. Your line is open. Please go ahead.
Brent Thielman -- D.A. Davidson -- Analyst
Great. Thank you. Antonio or Scott, does the guidance imply you effectively don't see any kind of meaningful back half rebound in either barge or wind-related, I guess, earnings or revenue? And if not is that still possible, if we were to see orders accelerate here in the first half?
Scott Beasley -- Chief Financial Officer
Sure, Brent. This is Scott. I'll take that question. So let me give you a little a cadence-color on the cadence of 2021 and then get to your back half question. In Construction Products, we expect it to follow a normal seasonal trend where Q1 would be the lowest meaningful step-up in Q2 and Q3, and then a bit of a step down in Q4. That's likely to be even more pronounced this year because of the February winter storm in Texas, but it will follow the normal seasonal pattern.
In Engineered Structures, we do expect a bit of a ramp-up throughout the year as we increased production out of the newly reopened facility. So Q1 would be the lowest followed by a step-up in Q2 through Q4. We do have some unsold capacity in the fourth quarter, but we're encouraged by our inquiry levels across all the product lines and don't expect a problem filling out that capacity.
And then in Transportation Products, Q1 likely will be the lowest because of our production schedule, but then relatively flat Q2 through Q4. We-there's the possibility of upside in the back half, if demand conditions improve significantly. That would require a meaningful step down in steel prices in the pretty short term, because of the lead time required to sell barges and then get them in the production schedule. So that's all incorporated in our guidance range. And the top end of the guidance range probably would suggest a quicker rebound in barge.
Antonio Carrillo -- President & Chief Executive Officer
Just to expand a little bit. I mentioned in my script that, we got some orders for wind towers in the first quarter and these are for this year. So there is still time for additional orders to materialize. Our assumption is that there's not much happening this year in terms of additional barge and wind tower orders. There is still some time but I think we're building a model that shows our best expectations for the moment.
Brent Thielman -- D.A. Davidson -- Analyst
Okay. Great. And then I guess the follow-up is on barge. Just thinking about the business overall, I mean it would appear to me some of the fundamental drivers behind it are looking like they're improving and I would think that helps your customers at least over time. So I guess the question is do, we need to wait out these elevated through steel prices before we see some sort of recovery in orders? Just be curious what your customers are telling you.
Antonio Carrillo -- President & Chief Executive Officer
Yes. I think that's the important piece of the conversation that you're just touching on. I think that's the key message. The key message we're seeing from our customers especially on the dry cargo side there is a significant need for new barges. The replacement cycle seems strong. Agricultural prices have gone up. Transportation margins have gone up. The prices of commodities have gone up. The size of the crop was very large.
So the fundamentals of the barge recovery cycle especially on the dry side are very strong. Steel prices as you know 2020, everyone in the pandemic freaked out basically and slowed down production of steel. Then the rebound came faster than anyone expected, especially in automotive and some other industries. That created a huge, huge demand for steel and prices just went through the roof. That's compounded with all this weather events that's hitting the steel mill.
So prices should stabilize sometime later this year probably in the summer late summer. And as that happens, I think we'll be able to sell some additional barges because they are needed. On the liquid side, the prices of oil have continued to improve and that should be really good for the industry. There's other things happening that are -- should help barge. The pipelines for example the cancellation of the pipeline could mean that there is more oil being moved in barges et cetera.
So I think once volumes come back that's the important piece. Prices have come back, but volumes continue to be below 2019 levels. Once volumes come back barge utilization should go up and then the replacement cycle starts. So that's why we mentioned in my script that our key for 2021 is stay flexible. We're going to take all the actions needed to reduce our cost structure, but we're going to try to stay flexible to respond to the additional demand when it comes back because we believe it's going to come back.
Brent Thielman -- D.A. Davidson -- Analyst
Thank you.
Operator
The next question comes from Ian Zaffino from Oppenheimer. Your line is open. Please go ahead.
Ian Zaffino -- Oppenheimer -- Analyst
Hey guys, thank you very much for taking my question. Question would be on the growth CapEx. You touched upon it a little bit. Can you give us a little bit more color on that? Where is that going to be going? Why are you doing it? And what should we really be expecting from that investment? And I have a follow-up. Thanks.
Antonio Carrillo -- President & Chief Executive Officer
Sure. Thank you, Ian. Let me give you some color on where we're seeing the growth CapEx. And the -- let's say the color on this growth CapEx is that, the good news for Arcosa is that we have more projects than money to invest in terms of organic CapEx. We're being disciplined as we've always said in the capital allocation. And having several projects to invest means we can choose the best ones.
And these projects we're investing in, if you remember last year we bought a small telecom business and we bought also a concrete poll business to support our Engineered Structures product offerings. As we said at that time our goal is to expand those small business across some of our footprint.
And a lot of the CapEx we're investing in 2021 will go toward that so expanding our footprint for those new product offerings across our coast. We're also investing some in our Construction segment specialty materials on our plaster plant. We are doing some investments there. But those are the two biggest projects where we're investing. As we've said the two growth areas for Arcosa are Engineered Structures and Construction Products and that's where the capital is going.
Ian Zaffino -- Oppenheimer -- Analyst
Okay great. And then as a follow-up I know you have a lot of exposure to Texas in aggregates. You're trying to get the infrastructure bill winding its way through. Can you remind us as far as Texas expenditures, how much of these projects is driven by state level spend versus federal level spend, or what tends to be the mix? I'm just trying to get a sense of if we start to see incremental federal dollars how much of an uptick would that translate into to your Texas exposure?
Scott Beasley -- Chief Financial Officer
Sure. Ian, this is Scott. Thanks for the question. So in Texas, Texas actually has a lower amount of federal reimbursement than the national average. So it's more reliant on state spending. And that's good because the state fiscal health is very strong plus you have the upside from a potential federal infrastructure bill.
For example, Texas lettings were up in 2020 versus 2019, which was one of the -- it was one of the stronger states. The American Road and Transportation Builders Association forecast for 2021 has Texas as a stable and growing state. And then recently the state DoT reconfirmed its 10-year, $75 billion Unified Transportation Program. So, all signs at the state level are positive in Texas. And then we could see some potential upside from a federal bill although, that would likely be a nine to 12-month lag time. So, more likely a 2022 impact for us.
Ian Zaffino -- Oppenheimer -- Analyst
Got you. Okay. Thank you very much. Good quarter. Thanks for all the color and guidance. Thank you.
Antonio Carrillo -- President & Chief Executive Officer
Thanks, Ian.
Operator
The next question comes from Stefanos Crist from CJS Securities. Your line is open. Please go ahead.
Stefanos Crist -- CJS Securities -- Analyst
Antonio and Scott, good morning.
Antonio Carrillo -- President & Chief Executive Officer
Good morning.
Scott Beasley -- Chief Financial Officer
Good morning.
Stefanos Crist -- CJS Securities -- Analyst
So the Construction Products segment isn't performing really well. Can you give us a sense of the organic growth in the Aggregates business?
Scott Beasley -- Chief Financial Officer
Sure, Stef, this is Scott. So the organic growth was very strong in Aggregates. We said volumes up significantly so high single-digits. A lot of that was organic through improved infrastructure-related work in Central and North Texas. And then part of that growth was with several bolt-on acquisitions really more like organic where we've added single mines to expand our geographic footprint in the Texas Triangle. So, very healthy organic rate plus some nice bolt-on acquisitions.
Antonio Carrillo -- President & Chief Executive Officer
The other piece that's important to remember Stefanos is in 2019 if you compare the quarter -- fourth quarter of 2019 versus the fourth quarter of 2020 our -- we have good oil exposure in West Texas and Oklahoma. And we started to have significant volumes there in 2019 while in 2020, it's come down significantly. So those numbers sometimes create some cloudiness across the volumes. Our volumes were actually stronger to -- if you look beyond that oil exposure.
Stefanos Crist -- CJS Securities -- Analyst
That's great. Thank you. And just as a follow-up. Antonio you mentioned 5G in the Engineering Structures. Can you give us a little more detail on that? Is that a current percentage of revenue? And where do you see that being in the next three to five years?
Antonio Carrillo -- President & Chief Executive Officer
Well, for us Stefanos, we bought a small company in 2020, that company made very specific large sales structures and very regionally in Oklahoma. So part of the capital that we're deploying this year is to expand those offerings in other parts of our footprint. We are in the learning stage, I would tell you. We are getting our feet wet on this product line. I think there's great opportunities. We are -- we have a really good management team and we are, let's say, throwing resource of this business to expand it.
I don't want to promise you a significant number over the next three to six months or a year. But I think the message I'd like for you to take is that we are very intrigued and very excited about the potential of the business. And I think there's great opportunities for us to expand. So that's -- it's -- think about it right now as just -- we're just getting started.
Stefanos Crist -- CJS Securities -- Analyst
Great. Thanks for taking my questions.
Operator
[Operator Instructions] Our next question comes from Justin Bergner from G.Research. Your line is open. Please go ahead.
Justin Bergner -- G. Research -- Analyst
Good morning, Antonio. Good morning, Scott.
Antonio Carrillo -- President & Chief Executive Officer
Good morning.
Scott Beasley -- Chief Financial Officer
Good morning.
Justin Bergner -- G. Research -- Analyst
I guess to start just thinking about the guidance should I think about the entire revenue decline as coming from the barge business or maybe even greater than 100% of the revenue decline, given you have some inorganic contribution in the other businesses and sort of similarly for the EBITDA?
Scott Beasley -- Chief Financial Officer
Sure Justin. I'll take that. I think you're right. In terms of the revenue guidance essentially all of the decline, maybe even more than 100% of the decline we've guided to will be in Transportation Products. Almost all of that is in barge just given the magnitude of the drop that we've talked about in barge. Construction Products we see healthy revenue and EBITDA growth.
And then Engineered Structures likely given the organic projects that we've talked about plus some of the growth of the acquisitions we did in telecom and traffic, revenue flat to slightly up and then we'd expect EBITDA in the same range that we had this year where a number of the organic growth projects would offset some potential headwinds in wind towers. So, you're right that the decline both in revenue and EBITDA is almost all in Transportation Products.
Justin Bergner -- G. Research -- Analyst
Okay, great. And the 12% to 13% adjusted EBITDA margin range that you're guiding for in Engineered Structures, I realized that's just a 2021 range. But what would cause that to inflect higher or lower as we look out into later 2021 and in 2022 and beyond?
Antonio Carrillo -- President & Chief Executive Officer
Yes. So, Justin this is Antonio. I would like to give you some color on that. I think the business has performed really well. If you see how we've done over the last few years, it's improved pretty significantly. There's two big things there. One is wind towers. And wind towers is driven I would say by volume and by the conditions of the market. And in the last few years we've been very I would say aggressive in terms of focusing that those wind towers need to compete on a level-playing field with other countries. There were significant number of towers coming into the US market taking advantage of some still tariffs and trying -- and basically dumping towers into the US market.
So, one thing has to -- that has helped the margin and will help the margin in the future I think is making sure that the US competes head-to-head on a level-playing field with other countries. And we think that the conditions are here that that will happen.
Also as the wind industry becomes more important that's our expectations over the next few years, demand should improve and that should also help us and that should help us keep good margins in wind tower. So, that's to me positive tailwinds for margin improvement over the next few years on the wind side.
On the utility side, I think volumes are good. I think demand is pretty robust. I think that's on our side. I think that's an internal thing that we have to continue to work. We have expanded capacity in Mexico last year. We're going through the ramp-up. Our utility structures business has been probably the most affected by COVID in terms of number of cases and ramping up a facility in another country with new equipment, with technicians not being able to travel and those things have been probably the toughest piece for Arcosa.
So, I think as we ramp up our business I think that's also positive for our margins in the future. So, I think you have a combination of outside markets that are robust and we have to execute. And that should take us to a current guidance that Scott gave you. But I think there's good potential to continue to grow those margins in the future as we execute better.
Justin Bergner -- G. Research -- Analyst
Okay, great. And then maybe just lastly. The EBITDA hit from the weather in Texas are we just talking about like a couple of million, or is it going to be more pronounced than that? Just trying to think about how that might affect the guidance range you provided today.
Scott Beasley -- Chief Financial Officer
Sure Justin. This is Scott. I think the good news is that Q1 is the slowest quarter of the year in Construction Products. And so taking a week out of production in the first quarter should have -- would have the lowest impact of any of the quarters. But we did lose a whole week across Texas and a good chunk of the footprint. So it will likely be several million dollars plus.
We've restored operations we had no major damage but losing a week of production across most of the footprint will impact Q1. And typically that volume is not caught up. There are other bottlenecks in the supply chain that contractors can add labor. The construction activity just gets pushed into the next quarter and then in the next year. So we've got a number of questions about whether that's -- that gets caught up within the quarter or in Q2 and typically that's not how the impact of major weather events happens.
Antonio Carrillo -- President & Chief Executive Officer
Yeah. And Ian, one-Justin, sorry, just to complement. When you slow down -- when you shut down a plant, you have a double hit. You have a hit. Basically you lose revenue and those things but you also lose the absorption of your cost structure. So it's normally not only a reduction in revenue, but also it impacts your margin.
The first quarter that Scott gave on the -- in terms of the cadence of the guidance, we see of course the impact of the storms in Texas. We have two ramp-ups happening in our Illinois plant for our wind towers. We have the ramp-up in our plant in Mexico for transmission towers.
And there is some potential for the steel delays that Scott mentioned. Some steel mills have had significant problems with the storms. So, I think we're confident that the first quarter is going to be a little rocky. But beyond that, we're very optimistic about the second third and fourth quarter.
Justin Bergner -- G. Research -- Analyst
Great. Thanks taking my questions.
Operator
Our last question comes from Leo Romero from City & Company [Phonetic]. Your line is open. Please go ahead.
Leo Romero -- City & Company -- Analyst
Yes. Hi, good morning.
Antonio Carrillo -- President & Chief Executive Officer
Good morning.
Scott Beasley -- Chief Financial Officer
Good morning.
Leo Romero -- City & Company -- Analyst
Could you maybe speak to demand trends for storage tanks in Mexico? I know that's something that was improving sequentially in the third quarter. I think you called it steady in the prepared remarks. So just hoping to get some additional color to see is that's still improving or maybe more in line with third quarter demand?
Antonio Carrillo -- President & Chief Executive Officer
Sure. Let me give you some color, because we have a pretty wide range of storage tanks in Mexico. So I'll give you -- so we make everything from a barbecue cylinder to a huge sphere that you see in refineries or petrochemical plants. So, each one of them has their own different trends right now.
As you can imagine, with the cold weather, the demand for small storage propylene tanks have increased dramatically both in the US and Mexico. No, it's normally -- it normally happens during the winter months. But this year has been especially strong and we've had a really good year in the US and really good year in terms of small propane tanks in Mexico. So that's really good news.
On the larger side, the US is doing well. We have good demand for large tanks. In Mexico as you know the economy is not doing well and investment is not happening. So large storage tanks are not that strong. We do have good let's say projects for the ones that are built on site those huge things you see in refineries and petrochemical plants. We have a few of those that are really good projects for 2021. But overall the majority of our revenue comes from small propylene tanker and that's done very, very well.
Leo Romero -- City & Company -- Analyst
Okay. And I guess for my follow-up, could you give us an update on the container-specific barges you talked about last quarter? And an idea of the potential incremental sales as a result?
Antonio Carrillo -- President & Chief Executive Officer
Yes. So we-I'm glad you asked about that. We-the two-we're building two container barges right now. We've been very active in go investing customers and showing them the potential. The container barges will be done probably late in the spring this year and we'll start testing them with customers. We have a few customers that have been very intrigued by them and we will be testing them.
I don't think you should expect incremental revenue this year from them. This is a year of innovation and testing. But I'm very optimistic about the potential of those barges. And some customers have been very intrigued by them. So I think it's something that-as you know containers are a huge mode of transportation across the US and there's very little happening in the river. So building a container-specific barge I think the economics look really positive. And we hope it's successful.
Leo Romero -- City & Company -- Analyst
Great. Thanks for taking the questions and best of luck in 2021.
Antonio Carrillo -- President & Chief Executive Officer
Thank you.
Operator
That is all the time we have for questions today. I will turn the program back over to Gail Peck for any additional or closing remarks.
Gail Peck -- Senior Vice President, Finance & Treasurer
Thank you, Gretchen. And thank you everyone for joining us today. We look forward to speaking with you again next quarter
Operator
[Operator Closing Remarks]
Duration: 46 minutes
Call participants:
Gail Peck -- Senior Vice President, Finance & Treasurer
Antonio Carrillo -- President & Chief Executive Officer
Scott Beasley -- Chief Financial Officer
Brent Thielman -- D.A. Davidson -- Analyst
Ian Zaffino -- Oppenheimer -- Analyst
Stefanos Crist -- CJS Securities -- Analyst
Justin Bergner -- G. Research -- Analyst
Leo Romero -- City & Company -- Analyst
More ACA analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, Inc (NYSE: ACA) Q4 2020 Earnings Call Feb 26, 2021, 8:30 p.m. Davidson -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Stefanos Crist -- CJS Securities -- Analyst Justin Bergner -- G. Research -- Analyst Leo Romero -- City & Company -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. As we mentioned in yesterday's release, the February 2021 winter storm in Texas and the broader Southern United States will impact our Q1 performance, as we lost more than one week of production across a significant part of our operating footprint. | Davidson -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Stefanos Crist -- CJS Securities -- Analyst Justin Bergner -- G. Research -- Analyst Leo Romero -- City & Company -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Arcosa, Inc (NYSE: ACA) Q4 2020 Earnings Call Feb 26, 2021, 8:30 p.m. We also see lower wind tower deliveries and a slow year in barge business resulting from low utilization rates in liquid barges and high steel prices impacting dry cargo barges. | Arcosa, Inc (NYSE: ACA) Q4 2020 Earnings Call Feb 26, 2021, 8:30 p.m. Davidson -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Stefanos Crist -- CJS Securities -- Analyst Justin Bergner -- G. Research -- Analyst Leo Romero -- City & Company -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Antonio Carrillo -- President & Chief Executive Officer The other piece that's important to remember Stefanos is in 2019 if you compare the quarter -- fourth quarter of 2019 versus the fourth quarter of 2020 our -- we have good oil exposure in West Texas and Oklahoma. | Davidson -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Stefanos Crist -- CJS Securities -- Analyst Justin Bergner -- G. Research -- Analyst Leo Romero -- City & Company -- Analyst More ACA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Arcosa, Inc (NYSE: ACA) Q4 2020 Earnings Call Feb 26, 2021, 8:30 p.m. We also see lower wind tower deliveries and a slow year in barge business resulting from low utilization rates in liquid barges and high steel prices impacting dry cargo barges. |
35420.0 | 2021-02-26 00:00:00 UTC | Arcosa’s 2021 Revenue Outlook Disappoints After 4Q Miss; Stock Plunges 16% | ACA | https://www.nasdaq.com/articles/arcosas-2021-revenue-outlook-disappoints-after-4q-miss-stock-plunges-16-2021-02-26 | nan | nan | Arcosa disappointed investors with its weaker-than-expected 4Q performance. Moreover, the infrastructure-related products and solutions provider issued a 2021 revenue outlook that fell short of Wall Street's estimates. Shares fell 4.2% in extended trading after witnessing a big drop of about 15.8% on Thursday.
Arcosa (ACA) posted 4Q earnings of $0.33 per share, which came in below the analysts’ expectations of $0.41 per share and declined 23.3% year-over-year. Meanwhile, 4Q revenues of $458.9 million increased 3% year-over-year but lagged the consensus estimates of $463.6 million. Adjusted EBITDA grew 6% to $56.4 million in 4Q.
As for 2021, the company projects revenues to be in the range of $1.78-$1.90 billion, lower than analysts’ expectations of $1.95 billion. Furthermore, it expects adjusted EBITDA in the range of $250-$270 million.
Arcosa said, “Looking ahead into 2021, we are optimistic on the underlying health of most of our markets, and our key growth businesses in Construction Products and Engineered Structures are positioned well for organic and acquisition growth.”
The company continued to note that, “The largest year-over-year challenge in 2021 will be in our Transportation Products segment, as the barge business continues to be impacted by the effects of COVID-19,” the company further said. (See Arcosa stock analysis on TipRanks)
Following the earnings report, Oppenheimer analyst Ian Zaffino raised the stock’s price target to $70 from $60 and maintained a Buy rating. This implies upside potential of around 22% over the next 12 months.
In a note to investors, Zaffino said, “Despite a soft barge and rail market, Construction and Engineered remains resilient and both are well-positioned for growth. In particular, construction activity remains robust, particularly in Texas, and could see meaningful upside from new infrastructure spending. Meanwhile, Engineered Structures should continue to see healthy demand from increased spend on electrical transmission, telecom, and traffic infrastructure.”
Wall Street maintains a cautiously optimistic outlook on the stock. The Moderate Buy consensus rating is based on 1 Buy and 2 Holds. The average analyst price target of $68.50 implies upside potential of about 19% to current levels. Shares have gained about 33% over the past year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa (ACA) posted 4Q earnings of $0.33 per share, which came in below the analysts’ expectations of $0.41 per share and declined 23.3% year-over-year. Arcosa said, “Looking ahead into 2021, we are optimistic on the underlying health of most of our markets, and our key growth businesses in Construction Products and Engineered Structures are positioned well for organic and acquisition growth.” The company continued to note that, “The largest year-over-year challenge in 2021 will be in our Transportation Products segment, as the barge business continues to be impacted by the effects of COVID-19,” the company further said. In a note to investors, Zaffino said, “Despite a soft barge and rail market, Construction and Engineered remains resilient and both are well-positioned for growth. | Arcosa (ACA) posted 4Q earnings of $0.33 per share, which came in below the analysts’ expectations of $0.41 per share and declined 23.3% year-over-year. Meanwhile, 4Q revenues of $458.9 million increased 3% year-over-year but lagged the consensus estimates of $463.6 million. (See Arcosa stock analysis on TipRanks) Following the earnings report, Oppenheimer analyst Ian Zaffino raised the stock’s price target to $70 from $60 and maintained a Buy rating. | Arcosa (ACA) posted 4Q earnings of $0.33 per share, which came in below the analysts’ expectations of $0.41 per share and declined 23.3% year-over-year. Arcosa said, “Looking ahead into 2021, we are optimistic on the underlying health of most of our markets, and our key growth businesses in Construction Products and Engineered Structures are positioned well for organic and acquisition growth.” The company continued to note that, “The largest year-over-year challenge in 2021 will be in our Transportation Products segment, as the barge business continues to be impacted by the effects of COVID-19,” the company further said. Related News: Clear Channel Posts Better-Than-Expected Sales; Shares Surge Papa John’s Misses Earnings Estimates; Shares Slip Sage Posts Surprise Quarterly Profit As Sales Surge; Shares Pop 6% The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa (ACA) posted 4Q earnings of $0.33 per share, which came in below the analysts’ expectations of $0.41 per share and declined 23.3% year-over-year. Meanwhile, 4Q revenues of $458.9 million increased 3% year-over-year but lagged the consensus estimates of $463.6 million. In a note to investors, Zaffino said, “Despite a soft barge and rail market, Construction and Engineered remains resilient and both are well-positioned for growth. |
35421.0 | 2021-01-13 00:00:00 UTC | Arcosa, Inc. (ACA) Ex-Dividend Date Scheduled for January 14, 2021 | ACA | https://www.nasdaq.com/articles/arcosa-inc.-aca-ex-dividend-date-scheduled-for-january-14-2021-2021-01-13 | nan | nan | Arcosa, Inc. (ACA) will begin trading ex-dividend on January 14, 2021. A cash dividend payment of $0.05 per share is scheduled to be paid on January 29, 2021. Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 9th quarter that ACA has paid the same dividend.
The previous trading day's last sale of ACA was $61.66, representing a 7.68% decrease from the 52 week high of $57.26 and a 119.12% increase over the 52 week low of $28.14.
ACA is a part of the Capital Goods sector, which includes companies such as Parker-Hannifin Corporation (PH) and Baker Hughes Company (BKR). ACA's current earnings per share, an indicator of a company's profitability, is $2.41. Zacks Investment Research reports ACA's forecasted earnings growth in 2020 as 6.81%, compared to an industry average of .3%.
For more information on the declaration, record and payment dates, visit the ACA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ACA through an Exchange Traded Fund [ETF]?
The following ETF(s) have ACA as a top-10 holding:
Franklin FTSE France ETF (FLFR)
First Trust RBA American Industrial Renaissance ETF (AIRR).
The top-performing ETF of this group is AIRR with an increase of 38.41% over the last 100 days. FLFR has the highest percent weighting of ACA at 4655%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ACA's forecasted earnings growth in 2020 as 6.81%, compared to an industry average of .3%. For more information on the declaration, record and payment dates, visit the ACA Dividend History page. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the ACA Dividend History page. Arcosa, Inc. (ACA) will begin trading ex-dividend on January 14, 2021. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the ACA Dividend History page. The following ETF(s) have ACA as a top-10 holding: Franklin FTSE France ETF (FLFR) First Trust RBA American Industrial Renaissance ETF (AIRR). | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have ACA as a top-10 holding: Franklin FTSE France ETF (FLFR) First Trust RBA American Industrial Renaissance ETF (AIRR). Arcosa, Inc. (ACA) will begin trading ex-dividend on January 14, 2021. |
35422.0 | 2021-01-12 00:00:00 UTC | Ex-Dividend Reminder: Arcosa, Methode Electronics and General Dynamics | ACA | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-arcosa-methode-electronics-and-general-dynamics-2021-01-12 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, Arcosa Inc (Symbol: ACA), Methode Electronics Inc (Symbol: MEI), and General Dynamics Corp (Symbol: GD) will all trade ex-dividend for their respective upcoming dividends. Arcosa Inc will pay its quarterly dividend of $0.05 on 1/29/21, Methode Electronics Inc will pay its quarterly dividend of $0.11 on 1/29/21, and General Dynamics Corp will pay its quarterly dividend of $1.10 on 2/5/21. As a percentage of ACA's recent stock price of $60.93, this dividend works out to approximately 0.08%, so look for shares of Arcosa Inc to trade 0.08% lower — all else being equal — when ACA shares open for trading on 1/14/21. Similarly, investors should look for MEI to open 0.26% lower in price and for GD to open 0.72% lower, all else being equal.
Below are dividend history charts for ACA, MEI, and GD, showing historical dividends prior to the most recent ones declared.
Arcosa Inc (Symbol: ACA):
Methode Electronics Inc (Symbol: MEI):
General Dynamics Corp (Symbol: GD):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.33% for Arcosa Inc, 1.06% for Methode Electronics Inc, and 2.89% for General Dynamics Corp.
In Tuesday trading, Arcosa Inc shares are currently down about 0.1%, Methode Electronics Inc shares are up about 0.3%, and General Dynamics Corp shares are up about 0.2% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a percentage of ACA's recent stock price of $60.93, this dividend works out to approximately 0.08%, so look for shares of Arcosa Inc to trade 0.08% lower — all else being equal — when ACA shares open for trading on 1/14/21. Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, Arcosa Inc (Symbol: ACA), Methode Electronics Inc (Symbol: MEI), and General Dynamics Corp (Symbol: GD) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for ACA, MEI, and GD, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, Arcosa Inc (Symbol: ACA), Methode Electronics Inc (Symbol: MEI), and General Dynamics Corp (Symbol: GD) will all trade ex-dividend for their respective upcoming dividends. Arcosa Inc (Symbol: ACA): Methode Electronics Inc (Symbol: MEI): General Dynamics Corp (Symbol: GD): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of ACA's recent stock price of $60.93, this dividend works out to approximately 0.08%, so look for shares of Arcosa Inc to trade 0.08% lower — all else being equal — when ACA shares open for trading on 1/14/21. | Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, Arcosa Inc (Symbol: ACA), Methode Electronics Inc (Symbol: MEI), and General Dynamics Corp (Symbol: GD) will all trade ex-dividend for their respective upcoming dividends. Arcosa Inc (Symbol: ACA): Methode Electronics Inc (Symbol: MEI): General Dynamics Corp (Symbol: GD): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of ACA's recent stock price of $60.93, this dividend works out to approximately 0.08%, so look for shares of Arcosa Inc to trade 0.08% lower — all else being equal — when ACA shares open for trading on 1/14/21. | As a percentage of ACA's recent stock price of $60.93, this dividend works out to approximately 0.08%, so look for shares of Arcosa Inc to trade 0.08% lower — all else being equal — when ACA shares open for trading on 1/14/21. Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, Arcosa Inc (Symbol: ACA), Methode Electronics Inc (Symbol: MEI), and General Dynamics Corp (Symbol: GD) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for ACA, MEI, and GD, showing historical dividends prior to the most recent ones declared. |
35423.0 | 2020-10-30 00:00:00 UTC | Arcosa, Inc (ACA) Q3 2020 Earnings Call Transcript | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-q3-2020-earnings-call-transcript-2020-10-30 | nan | nan | Image source: The Motley Fool.
Arcosa, Inc (NYSE: ACA)
Q3 2020 Earnings Call
Oct 29, 2020, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen, and welcome to the Arcosa Incorporated Third Quarter 2020 Earnings Conference Call. My name is Nicky and I will be your conference call coordinator today. [Operator Instructions]
Now, I would like to turn the call over to your host, Gail Peck, Senior Vice President, Finance and Treasurer for Arcosa. Ms. Peck, you may begin.
Gail M. Peck -- Senior Vice President, Finance and Treasurer
Good morning, everyone. Thank you for joining our third quarter 2020earnings call With me today are Antonio Carrillo, President and CEO; and Scott Beasley, CFO. A question-and-answer session will follow their prepared remarks. A copy of yesterday's press release and the slide presentation for this morning's call are posted at our Investor Relations website www.ir.arcosa.com. A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website under the News & Events tab. Today's comments and presentation slides contain financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation. Let me also remind you that today's conference call contains forward-looking statement as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the Company's SEC filings for more information on these risks and uncertainties including our form 10-K, the earnings press release we filed yesterday and our Form 10-Q for the third quarter expected to be filed later today.
I would now like to turn the call over to Antonio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Gail. Good morning and thank you for joining today's call to discuss Arcosa's third quarter results and our business outlook. Beginning with the key messages on slide four. First, our highest priority has been the safety of our employees as we continue to operate in the COVID-19 environment. Our businesses remain fully operational as essential services, and we continually update our protocols to meet or exceed CDC guidelines and ensure the safety of every one of our employees. We're grateful to our employees and our communities for the dedication during this challenging time. Next, Arcosa results continued to highlight the resilience of our business model and the repositioning of our Company around infrastructure products. Double digit growth in revenues and EBITDA was led by strong performance of our Construction Products segment. We executed well in the third quarter despite a record hurricane season causing some revenue and profit headwinds, and ongoing challenges associated with the pandemic. New order activity was mostly positive. Construction activity remained healthy and would have been stronger had weather events not been so prevalent. Additionally, we booked $154 million in wind tower orders, and we have seen increased project-based wind tower inquiries. For utility structures, demand remains robust and our primary constraint remains production capacity. Demand for traffic structures in our new Florida business has exceeded our expectations. '
Our Mexico business received good orders for infrastructure projects. In the liquid barge market, utilization rates continue to be low for our customers, but conditions in the dry cargo market have improved, with higher grain volumes and freight rates and very attractive steel prices. Even though we only received $18 million in new orders during the quarter, in the last few weeks, we have seen significant improvement in inquiries and have closed $32 million of additional barge orders for 2021. We're building a strong cash culture at Arcosa. The impressive $93 million of free cash flow in the third quarter brings our year-to-date total to $170 million, as we focus on reducing our working capital and operating more efficiently. This cash culture is helping us deploy growth capital into attractive markets while maintaining low leverage. We still have opportunities to improve, especially in the inventory and accounts payable management, but I'm excited with the progress made to-date.
Finally, we're pleased with the strategic investments we have made to grow our business, centered around Construction Products on Engineered Structures. Our key accomplish was what the $87 million acquisition of Strata Materials, a leading producer of recycled and natural aggregates in the Dallas-Fort Worth market that we closed in October. This transaction adds to the two smaller acquisitions we closed during the quarter. First, the telecom structure company we have previously disclosed and the natural aggregates bolt-on in Texas. We paid around $53 million for these two acquisitions at very attractive multiples. Slide eight is an overview of our third quarter performance. Construction Products followed by Energy Equipment were the key drivers of our 10% year-on-year revenue growth. EBITDA growth and margin expansion were driven by Cherry acquisition, as well as strong operating performances in our aggregates and barge businesses. Scott will review the performance of our different segments.
And then, I will come back to discuss our business outlook. Scott?
Scott Beasley -- Chief Financial Officer
Thank you, Antonio, and good morning, everyone. I'll start on slide nine and review our segment results from the third quarter. Construction Products revenue grew 27% to $147 million. And adjusted EBITDA increased 40% to $36.8 million. Both revenue and EBITDA were roughly even versus this year's record second quarter, despite an extraordinary number of major weather events in Houston and the Gulf Coast that impacted construction activity and our operations in those areas. Segment EBITDA margin of 25.1% was up roughly 250 basis points from last year's third quarter, a result of strong execution by our operating teams. I'll give a few highlights from the quarter. Our Cherry business in Houston performed well, despite major weather events. Both recycled aggregates and natural aggregates have grown since last year, and we are expanding our reserve positions to continue growing in the attractive Houston market. In our legacy natural aggregates business that serves construction markets, volumes were up at a healthy level versus last year as we supplied major infrastructure projects and the Texas triangle experienced strong residential activity and benefited from several bolt-on acquisitions. We also improved margins significantly through operating efficiencies, lower maintenance costs, and lower fuel costs. Our mix shift resulted in a lower ASP, but gross profit per ton was up nicely. Our aggregate plants in South and West Texas serving the oil and gas markets, continued to be down versus last year, but were stable sequentially. We recorded an impairment charge of $800,000 as we right-sized our South Texas footprint and redeployed equipment to more stable demand markets.
Our overall volumes in aggregates were roughly flat versus last year, as we replaced more volatile oil and gas exposure with more stable construction market exposure. Our specialty products business has also performed well, but has dealt with pockets of COVID-related softness. Our plaster product line has experienced strong demand in certain geographies, but softer demand in the Northeast and West Coast. Lightweight aggregates revenue has also been lower this year, primarily from delayed or reduced demand in large non-residential construction projects. Finally, revenue from our trench shoring product line was down slightly versus last year, but higher sequentially as customers gain confidence and resume more normal purchasing patterns. Overall, our Construction Products team did an exceptional job executing in the quarter. And our strategy to deploy capital into this resilient sector has paid dividends in the midst of COVID-related challenges. Moving to Energy Equipment on slide 10. Revenue grew 6% to $223 million. Adjusted EBITDA of $28.5 million was down from last year, but the margin of 12.8% was toward the top end of the 12% to 13% margin range that we expected at the beginning of the year. Within our wind towers and utility structures revenue line, about half of the $22 million of revenue growth was from organic improvement. The other half was from our newly acquired traffic and telecom structures product lines, which both performed well during the quarter and were accretive to our segment margins. While demand remained healthy, adjusted EBITDA and margins in our utility structures business were lower than we expected in the quarter due to operational challenges related to COVID. We had lower production in two plants, due to higher commodity rates of COVID-19 but we have since returned to more normal levels and believe we're past the major impact of these issues.
Finally, while revenues were down year-over-year in our storage tanks business, we've seen improved demand in recent months. Demand for our residential and commercial propane tanks has remained stable, and we have recently won several new orders for large infrastructure projects in Mexico. Turning to slide 11. Transportation Products revenue was even versus 2019 but improved margins in our barge business led to 38% adjusted EBITDA growth. In the barge business, our revenues were up 28% due to increased dry barge deliveries. The team did a fantastic job driving operating efficiencies and controlling costs during the quarter, generating margins ahead of our expectations. All three of our plants delivered exceptional operating results. Revenue and rail components declined year-over-year but was flat sequentially. New rail cargos continue to be weak across the industry but picked up a bit in Q3, so we are hopeful that we have reached a low point in the cycle. We've been EBITDA positive throughout the downturn and have had additional success in winning new orders for the more stable, maintenance and non-rail markets. We are optimistic about the business's growth prospects once the railcar market improves. On page 12, we show several additional financial items from the quarter. Our corporate expenses of $17 million were higher than our normal $13 million run-rate due to $2.5 million of non-recurring legal expenses from a pre-spin-off manner as well as $1.4 million of acquisition and integration related expenses, including for the Strata acquisition that we closed in October. Turning to slide 13, our $93 million of free cash flow was a highlight of the quarter and reflects the strength of our growing cash culture across our businesses. $38 million of our free cash flow came from working capital improvements. Our operating teams have been tightly focused on reducing receivables and inventory and extending our payable terms to industry norms.
The very strong cash flow we've had this year has helped fund more than $140 million worth of acquisitions since the end of the first quarter, while maintaining the same level of net debt to adjusted EBITDA. We ended Q1 with a 0.5 leverage ratio and we remain at roughly the same level, after the Strata acquisition, still below our long-term target of two to 2.5 times. Our balance sheet gives us a great deal of financial flexibility to continue to invest in a disciplined organic and acquisition growth that Antonio will discuss in more detail.
I will now turn the call back over to Antonio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Scott. Let's turn to slide 15 for a discussion of our business outlook. Starting with Construction Products. The overall outlook for this segment is positive, and I'll touch on three factors that underpin this outlook, attractive and market fundamentals, resiliency of margins, and a robust pipeline to deploy capital. First, infrastructure products -- infrastructure and residential markets have shown strong demand, which has offset softness in non-residential construction and COVID-related capex deferrals from our customers. The majority of the aggregates business is located in high-growth geographies, particularly Texas, where construction activity has remained robust. In the short term, lower state budgets could dampen infrastructure spending, but our federal stimulus plan including infrastructure investment could offer upside. We were pleased to see the one year extension of the FAST Act. Second is margin resiliency. A large portion of the construction segment costs are variable, which allows the business to adjust their cost structures as demand fluctuates. In the markets where demand has softened because of COVID, primarily lightweight aggregates and shoring products, we have been able to reduce our cost structure and maintain healthy margins. Even with slowdowns in those businesses, we were able to increase segment margins by 250 basis points in the quarter. Finally, we continue to be optimistic on our ability to deploy capital in aggregates and specialty materials, both organically and through acquisitions. An example of this disciplined capital allocation was the October acquisition of Strata Materials. The bulk of Strata revenue comes from recycled aggregates, which is a key area of focus for us that started with the acquisition of Cherry earlier this year.
The acquisition is an excellent strategic fit with our current footprint as it brings on six new locations in the Dallas-Fort Worth market, including five recycled aggregates plant and one natural aggregate plant. With this acquisition, we will be able to offer our DFW customers both recycle and natural aggregates and accelerate our growth. We continue to build a pipeline of additional acquisitions with aggregates and specialty materials. Turning to Energy Equipment. The utility structure market is extremely strong with demand outpacing our current production capacity. Utility customers continue to implement grid hardening and reliability initiatives, as well as invest in renewable connections. To meet this increased demand, we have started delivering products from our plant in Mexico, where we have invested roughly $20 million over the last year. We're very excited about the possibilities and the ramp up we expect to see over the next several quarters. Our new acquisitions of traffic and telecom structures and concrete poles are doing well with strong backlogs and positive trends. We're in the beginning stages of this integration and have started to achieve early commercial and operational synergies. At the same time, our goal continues to be to grow by replicating these new product lines across our footprint. Moving to our wind tower business. As we have discussed before, we expected the wind tower market to become project-based as a production tax rate phases out, and this is what we're seeing. We booked a $154 million of new wind tower orders in the third quarter, and we continue to see good project based inquiries. With these orders, we have good visibility for the 2021 production plans, supporting our theses of an orderly step down from PTC subsidies. As we have also discussed in the past, wind towers have gotten much larger. In 2021, we're scheduled to produce some of the larger wind towers in our [Indecipherable] plant, which is not set up for those towers.
Therefore, over the next few months, we will be investing in retooling that plant. As a result, we plan to reduce our production in the [Indecipherable] plant during the fourth quarter to ramp up back in the middle of the first quarter. Having to retool one of our plants due to improved demand for larger wind towers is a positive development for our wind tower business. But we expect this temporary shutdown to impact the fourth quarter results, probably $2 million or $3 million of additional expenses are lost profit. Although, we remain optimistic about additional orders in the next few months, we expect 2021 to be a transition year for the industry, given the expiration of the PTC, and we do expect lower wind tower deliveries than 2020. If we look beyond next year, the fundamentals for the wind tower industry remain strong. Turning to transportation, COVID-19 has slowed the positive barge momentum that we experienced earlier this year, but we're still optimistic on the medium and long-term. Long-term fundamentals for both dry and liquid barges remain quite strong, giving an aging fleet, the natural replacement cycle and higher grain movements. We're encouraged by the uptick in dry barge inquiries, but we expect that the liquid market will take longer to recover. Given our conviction in the long-term fundamentals of the market, our main focus is to maintain our flexibility to efficiently ramp up production when more significant order activity resumes. We have taken steps to extend our backlog and slow down production at our three plants in anticipation of lower volumes next year. We have worked with customers to extend roughly $27 million in orders from Q4 into 2021, which will reduce Q4 results, but will allow us time -- which will allow us time for confidence to return for new orders to materialize. At the same time, we're working to promote new ways of utilizing barges to move additional cargo on the river system. Containers have traditionally been moved by rail and truck but not -- but only a small percentage by inland barge.
We recently completed the design of a container-specific barge, which can move up over 50% more containers than traditional hopper barges. This improvement could generate significant cost reductions in container logistics by barge and create a strong incentive to invest in the needed infrastructure. Over the next few months, we will be making two container barges and have worked with a couple of customers who will start testing this. This is a medium term project that we believe will have very attractive economic benefits for our customers, while at the same time generating significant environmental benefits as well. For our rail components business where demand has been weak, we continue to expand our products and customer base to non-rail markets and expect to benefit from an added volume while the railcar demand normalizes. Finishing up on slide 18, in a few days, we will mark our second anniversary as an independent public company. In reviewing our overall performance in the first three years, three key takeaways come to mind. First, we have transformed our business repositioning around core infrastructure products that enhance our resiliency, reduce our cyclicality, and expand our potential for long-term sustainable growth. It has been accomplished through a combination of organic initiatives and more than $800 million of strategic acquisitions that we targeted for their attractive market characteristics, and alignment with ESG initiatives. We have accomplished this transformation using very modest leverage, using our strong free cash flow. We continue to have the balance sheet capacity and appetite to pursue additional acquisitions. Next, I would like to highlight that this transformation has progressed successfully, despite the backdrop of the economic slowdown of the last seven months that has impacted a number of our businesses.
The pandemic has made operating and competing deals more challenging, but we have continued to move forward, albeit at a slower pace than we would have liked. We remain committed to taking further steps toward our long-term strategic goal of simplifying our business. Finally, and most important takeaway is that the fundamentals of our business remain strong. There is likely some volatility in front of us, giving us certainty COVID creates, but the markets where we are focused have strong fundamentals with positive long-term sustainable growth. At Arcosa, disciplined capital allocation is a key priority, and we expect to continue investing in those businesses that help us fulfill our long-term vision to grow in attractive markets with competitive advantages, reduce the complexity and cyclicality of our business, improve our long-term returns and integrate ESG into our business. With only three years as an independent company, we're just getting started. There's still a lot to do, and we believe we have tremendous opportunities ahead of us and look forward to continuing to build our cost.
I would like to open the call for questions.
Questions and Answers:
Operator
[Operator Instructions] And we will take our first question from Julio Romero with Sidoti. Please go ahead. Your line is open.
Julio Romero -- Sidoti -- Analyst
Hi, good morning I hope you all are well.
Antonio Carrillo -- President and Chief Executive Officer
Hi, Julio. You too.
Julio Romero -- Sidoti -- Analyst
I wanted to ask about the barge business. You mentioned that orders in October were better than in 3Q in total. What do you think is driving the uptick recently? And do you expect orders and inquiry activity to kind of remain at that same level in November and December, or maybe better than the pace in October?
Antonio Carrillo -- President and Chief Executive Officer
Yes. This is Antonio, Julio. Let me give you some color on this. If you remember, we had a very good first quarter in orders and then after COVID hit, I think, like most businesses, our customers started looking at their capex and trying to figure out how to conserve cash. And that's the first impact we saw people were trying to avoid large capex. And then, you had of course the uncertainty how much the merchandise was going to be moving on the river system. So, you have two different dynamics here. On the liquid barge, we said we have not seen an uptick in demand, we continue to see very slow inquiries. Utilization rates are very, very low. So, that's why we're saying that it's going to take longer to recover. On the dry cargo side, you've seen a very healthy crop, you've seen China importing more grain, and they're still far away from the target that they have set. Rates have gone up. The opening of the Illinois river in October is going to help. So, I think there's a lot of positive signs for the dry cargo market. And if you remember, over the last five years, the dry cargo market has been the one that has replaced their barges more slowly. So, there's more potential for replacement in the dry side and in the liquid side. And that's why because of this uncertainty on the amount of orders that we will receive, and we are positive in the ones that we're receiving, we continue to see inquiries as of this morning. I think, that's why we said that our priority is to remain flexible in our production footprint, so that we can react when our customers need us to deliver these barges. Because if you remember in 2018, when demand picked up, we were not ready and we were slow to ramp up, we need to ramp up much faster, and that's the forces we have going forward.
Julio Romero -- Sidoti -- Analyst
Got it. And nice job on the cash flow in the quarter. I think, you mentioned in your prepared remarks about extending payables, working to extend payables to more of industry norm. So, can you just talk about that? And is days payable in that mid-30s range kind of where you expect to be in the future?
Scott Beasley -- Chief Financial Officer
Sure. Julio, this is Scott. I think, the biggest thing we've done is create a focus on cash culture, where everybody is very-focused on cash, when we spun off from our former parent company, that hadn't been a priority. And so, over the last two years, we've been trying to build the cultural foundation. We've seen a lot of success and we generated about $170 million of free cash flow this year, thus far, $93 million in the quarter. I'd say we've made the most progress in our accounts receivable. We have made progress in accounts payable, have room to go. And then, inventory remains probably the biggest opportunity, where it's a little harder to get, because it involves more full kind of operational redesigns but we think that we have opportunities in inventory too. So, across inventory and AP, I think, we still have room to improve working capital and we're optimistic that we can do that next year.
Julio Romero -- Sidoti -- Analyst
I appreciate the comprehensive answer. I'll hop back into queue.
Scott Beasley -- Chief Financial Officer
Thanks.
Operator
And we will take our next question from Bascome Majors with Susquehanna. Please go ahead. Your line is open.
Bascome Majors -- Susquehanna -- Analyst
Yes. Thanks for taking my questions. You made some preliminary commentary on next year in the wind tower business. I was hoping that we could pull it back a little more. And at least for those businesses, where you do have backlog and some visibility, just directionally think about what next year might look like, or at least start like from where we sit today.
Antonio Carrillo -- President and Chief Executive Officer
Sure. Bascome, let me give you some color on -- we're still in October, almost the end of October. So, we still have ways to go. We haven't even done our budgeting. So, it's hard for me to give you a lot of color. But, I'll tell you where things are playing out and how I see our markets for 2021, just directionally. We're very, very positive on our construction segment. We will have Strata for the full year; we will have all these small acquisitions that we did for the full year. And, we have organic growth. We've invested in the Houston area, Scott mentioned. We're investing around the Dallas-Fort Worth area, we're investing around some of their operations. And the shoring business is looking better than -- we had a really bad year, it doesn't show in our numbers, because some of our businesses have done fantastic. But our lightweight aggregates that are showing progress did not do well in terms of revenue and growth. They kept their margins, and that's what we liked, but they did not have a good year. And they're struggling because of a lot of COVID project delays, especially in the areas where they're located. So, I think, the construction segment, if you put all of those together, we're very positive about growing it in 2021 at a very healthy level. On the energy side, we have -- as we said, our utility structure continues to be strong, and we continue to see it as a very strong market for 2021. We will have our acquisitions for the full year next year, which will allow us to grow there. We have these projects to replicate these acquisitions in other areas.
So, you will see us deploy capital there. And, we have the new plant in Mexico, which we will be ramping up and that plant should allow us to continue to grow volumes for 2020, we're also very optimistic there. The tank business in Mexico should be relatively stable. And then, on the on the wind tower side, what I mentioned is that -- and we have said this probably since before we spun off. We expected 2021 to be a transition year as PTC expires. And my comment there has always been that I expect the industry in general to kind of go through this reinvention of being in an industry with no production tax credit. It's an industry that's been used to having it. I think, there are significant differences now. The technology is allowing wind towers to compete head to head without a PTC etc. But, it's still a big change for the industry. So, that's why we're saying we're very happy that this -- we've got the orders, we continue to receive inquiries. We're very optimistic about additional orders for 2021. We don't think that's it. But, we do expect that 2021 is going to be lower than 2020. If you remember, to deliver a tower -- to install a wind farm in 2021, you basically need to deliver the towers halfway through the year. So, that's why I think we have relatively good visibility. Things can change, we can still get a orders, and we are operating our three plants, and we still have a plant in Mexico that we're not using. So, I think there's opportunities.
I will tell you directionally, the two areas of big opportunities for changes are barges and wind towers, because that's where we have more -- a little more uncertainty in terms of how big the orders we can expect. But overall, we're very positive on the wind tower fundamentals for the long term. For 2021, we do expect a little slowdown. Then on the transportation side, that's where we have the most volatility, let's say. I think, on the rail components, we are at the bottom. The business is performing very well at the bottom. It's generating positive EBITDA, as Scott said. And we saw some positive orders compared to the second quarter in the rail industry. We've grown our non-rail customers quite a bit and non-rail products quite a bit and we're very optimistic about the prospect of continuing to grow there. But, the rail industry is cyclical as you very well know. So, if the rail industry recovers, I think we have a very nice uptick in our business, because we've been able to cut our costs so much. And then, the barge industry, I think, we -- as I mentioned before in previous question, we're very optimistic on the dry cargo orders. We're keeping our plants flexible. Liquid barges are different story. We are not so sure where that's going to go, how long it's going to take to recover, probably sometime in 2021. What I can tell you is that we will have the capacity to ramp up as orders materialize. And that's why I say that we are building this container barges in one of our plants that allows us to extend some of our plants operating for a longer period of time to allow time for those orders to materialize. Hopefully, I gave you lots of information that hopefully-hopefully that's what you were expecting.
Bascome Majors -- Susquehanna -- Analyst
That's tremendously helpful. And I appreciate your candid discussion before you've gone and set your budget. One more and then I'll pass it on. I recall, with the nature of a tax free spin, there's some limitations, at least at the parent company with the IRS and what you can do from a capital allocation standpoint, until you hit that two-year anniversary. With that two-year anniversary for Arcosa as a spin-co, was anything restricted in the last two years? And starting next week, as you lap that, is there more optionality or opportunity on some things you can do with capital allocation next week that you couldn't do this week?
Antonio Carrillo -- President and Chief Executive Officer
I'm not alone in the room, Bascome. But, I'll tell you that the -- there were some limitations from the tax to allow the spin-off to be tax free. I will tell you that there were -- there's quite a bit of limitations. The biggest limitation we had was on the Energy Equipment segment, which is what's considered our main segment as we spun off, because of its size. But, there were some other limitations. What we mentioned in my remark -- prepared remarks is that we continue to be committed to simplifying the business, as we have discussed before. And I also mentioned that we have continued to move forward with our initiatives with the pandemic and everything. But, things have slowed down. And we didn't expect, for example, the drop in the rail market as fast as it did this year, starting last year and some of the things that have slowed us down in making some decisions. So, the comment I can tell you is that I think after November 1st, we -- a lot of limitations go away. But, that has not been the primary, let's say, bottleneck for us to do things. I think, it was there, but it was not the primary focus. I think, the business conditions have to be what drives us. And the business conditions have been relatively uncertain over the last year or so. But, we are still committed with what we said day one from the spin-off.
Bascome Majors -- Susquehanna -- Analyst
Thank you very much.
Operator
And we will take our next question from Stefanos Crist with CJS Securities. Please go ahead. Your line is open.
Stefanos Crist -- CJS Securities -- Analyst
Good morning and thanks for taking my questions. First, you talked about operational challenges and utility structures business due to COVID. Could you go in a little more detail on what those challenges are, and maybe how long you expect those to linger?
Antonio Carrillo -- President and Chief Executive Officer
Sure. Stefanos, this is Antonio. Let me give you some color. And, the challenges were mainly in the first half of the third quarter. They've been improving since then. But, two of our big plants were in communities where COVID was -- COVID cases were going pretty significantly. And we had to isolate a lot of people because of that. And, as you start isolating people, absenteeism goes up tremendously. And even though you don't realize it, but we try to operate in a very lean organization. So, we don't have a significant backup. If you send five people home in a certain area, you don't have people to substitute them. So, we really were -- two of our plants were basically brought to their knees for a few weeks. And since then, things have improved. So, those two plans have started to come back. And in September, they behaved much better than August and July. So, I think, we're moving ahead. And we are mostly out of the woods. So, things are starting to perform very well again. But, that's one of the examples of what COVID can create for one of your plants, if something happens in the communities, mainly in the communities, and then they bring it into the plant. So, I think that was the case. But, it did impact us pretty significantly in our utility structure for the quarter. We are optimistic and we're very positive on the fourth quarter in our utility structure. And the good news is that these are not like hotel rooms where you don't sleep and it goes away. The orders are still there, the customers are still there, we need to deliver. So, that's probably the good news around it.
Stefanos Crist -- CJS Securities -- Analyst
Thank you. That makes sense. And then, could you maybe give us a little more color on organic growth, in aggregates?
Antonio Carrillo -- President and Chief Executive Officer
Sure. So, Scott mentioned we have invested quite a bit in increasing our reserve base around Houston. Houston still has a lot of potential for us. When we bought Cherry, they had a very nice strategic plan laid out of how to expand toward the areas where Houston is growing. So, Houston has been one of our big -- organic areas. Around DFW, again, we continue to expand and we bought -- we've gone through some land acquisition mainly, but more the bolt-on acquisitions have been -- those are inorganic but have helped us. When you start combining a few bolt-ons, you start generating synergies between them that we consider that part organic. And then, on the specialty materials, as Scott said, I think, the highlight is our plaster business continues to grow. We saw a slowdown in the second quarter but it started to grow again. And we have nice organic opportunities there. So, overall, I would say that it's been around Houston, Dallas and some of the specialty materials.
Stefanos Crist -- CJS Securities -- Analyst
Thank you. And I'll jump back in queue.
Operator
We will move next with Ian Zaffino with Oppenheimer.
Ian Zaffino -- Oppenheimer -- Analyst
Scott, I don't know, if I heard actual organic growth number for the aggregates business. So, I wonder if you can maybe give that. And also maybe just -- can you talk about just the conversations you're having with customers. I guess, Texas has a massive rainy day fund. Is that large enough to maybe cover them for the next couple of years, or how do we think about it, as we look into next year, and maybe to some states, to have budget shortfalls, but then they also have a rainy day fund. So, if you could maybe give us some color there, have people in the industry are like thinking about this and what your customers are saying? Thanks.
Scott Beasley -- Chief Financial Officer
Sure. Ian, this is Scott. I'll take those separately. So, on the organic growth rate in aggregates, we had roughly offsetting factors. So, the legacy businesses driven by strong construction market exposure was up, call it mid-single-digits in terms of volumes, that was offset by the oil and gas exposure that we had, primarily South Texas and West Texas. So, the two of those offset each other into roughly flat volumes. But, we talked about replacing the more volatile oil and gas exposure with more stable construction market exposure. So, we think that's a better mix, even the volumes are roughly flat. On your second question of Texas fundamentals. I would agree with your premise that Texas is in a very good fiscal position. So, when we look at indicators, there's a healthy state budget, there's a $9 billion rainy day fund that comptroller said is not expected to have to be used, but could be used, if needed to, for this fiscal year. You've seen healthy population growth, particularly as de-urbanization has increased in Houston and Dallas, and the outskirts have been a beneficiary of that. We've seen major improvement in housing starts, particularly in Houston and Dallas. And as Antonio said, about two-thirds of our Construction Products exposure is in Texas. And we're very bullish on the state and the fundamentals there.
Ian Zaffino -- Oppenheimer -- Analyst
Okay. Thanks. And then, just as a follow-up on the M&A front. You've been doing a lot of acquisitions. At the same time, the M&A market is relatively robust here. I mean, is this an opportunity to take advantage of anything inside the portfolio maybe to achieve the goals of making the business a little bit more, I guess, streamlined and a little bit more focused?
Antonio Carrillo -- President and Chief Executive Officer
Yes. Ian, this is Antonio. Yes. As I said, we remain committed to that. So, there are opportunities. I think, there are opportunities to simplify the portfolio. And at the same time, we have really nice opportunities in the pipeline to deploy additional funds that we could get by simplifying. So, yes, I think, there are -- as I've said before and I am a firm believer, M&A has a life of its own. And sometimes it happens, when you least want it and sometimes it doesn't happen when you more want it. It's -- there's always -- you need to do that. And at some point, I'm sure we're going to have opportunities both on the buying side and the simplifying side. But, we remain committed to both and we made real appetite for both.
Operator
And we will take our next question from Bill Baldwin with Baldwin Anthony Securities.
Bill Baldwin -- Baldwin Anthony Securities -- Analyst
Thank you very much and thank you for taking my call. Antonio, can you offer a little bit of insight into the utility structures market regarding -- how is split between your alliance customers or their alliance market and kind of the bid market? And where you see your most opportunity for Arcosa's new business growth, say over the coming year or so?
Antonio Carrillo -- President and Chief Executive Officer
Yes. Bill, I'll give you some color on that. Historically, the business we have that we bought from -- in 2014, as part of trading is what mainly concentrated on alliance customers. And that has been the focus of the business. And I think, there's several -- and we took out three big opportunities. One is, expanding our alliance customers, and we've been focusing on that. We have great opportunities to expand those. And I think I'm very excited about what I'm seeing and talking to the team about expanding that part of the business. The second one, probably the biggest by far is the bid market, because we have historically participated very little. As we expand our capacity, I think, the bid market has to be part of our portfolio where we play and part of our priorities to deploy some of our capacity there. It offers great things, it offers our volume, but it's less reassuring. Let's say, you have less visibility around it and therefore you have to be much more flexible in your manufacturing footprint to attack it. And that's what we're building. And then, the third piece of growth is expanding our product line to offer to both the alliance and the bid markets. And that's why we're expanding our bid -- our portfolio with these concrete poles, with distribution poles, with other kind of structures that they need. So, I think both markets are important. And if we add the additional product line to our opportunities, I think, we're very, very excited about our future there.
Bill Baldwin -- Baldwin Anthony Securities -- Analyst
Thank you, Antonio. That does offer some good insight. But, do you see the -- with the hurricanes being a negative obviously for a lot of operators, but do you see that as a impetus to demand for some of your utility tower products here, as you need to replace what's been destroyed?
Antonio Carrillo -- President and Chief Executive Officer
Yes...
Bill Baldwin -- Baldwin Anthony Securities -- Analyst
Do you have meaningful market, I guess, is what I'm saying. Is that going to be a source of demand here in 2021?
Antonio Carrillo -- President and Chief Executive Officer
That's a really good question and something we don't talk enough about. But, it's -- weather events are becoming more and more prevalent. And there's a few of our businesses that are very well-positioned to be very relevant in the rebuilding. One is the utility structures and distribution poles, as you said. All the structures in general, the one that we bought in Florida for traffic structures also gets additional volume. And also, our business around the Gulf Coast, Cherry and some of our average business, there's significant demand that comes back when there's weather events, you have to rebuild in -- especially in Houston, for example, the levees and all those things. There's significant demand that comes from those. We've been preparing for those. I mentioned in the last conference call, we're starting to import riprap from Mexico to try to help our business. So, I think, we're optimistic. As I mentioned to Bascome in his question around 2021, the ups and downs of all of our businesses, we're optimistic about 2021. And as weather events come, I think that's an additional, let's say, driver for our demand, some of our products.
Bill Baldwin -- Baldwin Anthony Securities -- Analyst
On your acquisitions and traffic structures and telecom structures, your objective is to replicate that and expand the footprint to I guess a more national marketplace. What are the main challenges, Antonio? And taken those smaller, right now, where you have concentration in smaller markets and expanding that out to other markets in the country, what's the main challenges of doing that?
Antonio Carrillo -- President and Chief Executive Officer
It's also a very good question. I think we -- the big challenge, if you look at the Company is to create a different structure, as we look at the markets. Commercial is a very different market. If you look at the traffic structure or the telecom structure, they're very different market from utility. The commercial face of the Company has to be remained very-focused on each one of the markets. While the manufacturing piece is where we generate a lot of the synergies by putting these product through similar plant, has to be kind of a single source of manufacturing for the three markets. So, that's -- the next challenge is to introduce these new products into our plants, to generate the synergies, while at the same time keeping the focus on our customers and the focus on the commercial aspect, very focused.
Bill Baldwin -- Baldwin Anthony Securities -- Analyst
Does it involve having to go out and acquire new customers as you go into these new markets? Does it involve any kind of regulatory tests you have to pass for your products to go into different states and hotels? Do you have any new customer challenges and/or regulatory challenges with expanding this business?
Antonio Carrillo -- President and Chief Executive Officer
Some of the plants, depending on the product line, some of the plants have to be certified for certain DOTs and some of the things. So, there are regulatory aspects that we have to follow. And that will take some time, but it's nothing that we cannot do and we're not used to doing. On the customer side, it's like everything else, we just have to put our suit on and get our briefcase and travel to see the customers and convince them that we're a good option and then prove that we are the best option.
Bill Baldwin -- Baldwin Anthony Securities -- Analyst
I bet you can do that. Lastly, just -- you mentioned a number of times that storage business has large infrastructure projects in Mexico. Can you be more specific or offer color as to what the nature of those projects are?
Antonio Carrillo -- President and Chief Executive Officer
Well, as you know, there is some strategic projects that the Mexican government is building. And those are large, specifically around the refining area, and there's been some opportunities there that we are starting to capture. We are not selling -- we do not sell directly to governments, we sell everything through construction companies, large EPC. So, that's -- our main focus is serving the large EPCs that serve the infrastructure market. So, we are not a direct seller to any specific project. We sell through large international EPCs.
Operator
We will move next with Justin Bergner with G.research.
Justin Bergner -- G.research -- Analyst
I hopped on the call a bit late. So, I apologize if anything here is redundant. On the barge side of the business, you had positive comments about the outlook for dry barges, but it doesn't seem like that filtered through into orders in the quarter. And so, I guess, any color there would be helpful. And, what does the rising steel price mean, if anything, for that -- for the dry barge market?
Antonio Carrillo -- President and Chief Executive Officer
So, Justin, this is Antonio. Let me mention. The dry -- as we said in the prepared remarks, the quarter was very slow in orders. We received additional orders afterwards. And we continue to receive inquiries, as I said, even to this morning. So, we're more optimistic on the dry cargo market. We're still in the pandemic. So, I think, a lot of the customers have still some reservations around when to deploy their capital into additional capex. But, the dry cargo market has very specific dynamics that are positive. Grain exports that's going to China, China buying more, rates are up, river reopening, a lot of positive things are happening there. Over the last six months, we've had really positive steel prices, as you mentioned. When you look at the steel prices, we're going through a very interesting time, where the main -- when you hear steel prices are going up, it is mainly on the coil side. So, over the last six months, there's been a complete, I would say, a reverse trend of what traditionally has happened. Plates have been historically more expensive than coil. And over the last six months, that has reversed. Today, coil is the one that's going up, and plate has remained relatively flat. I personally believe that plates continue to be very -- very, very attractive prices at where we are today. And that's why we're saying that for us, steel prices continue to be a positive thing for barges. It still continues to go up and it reflects on the plate size, then of course, high steel prices are not good for barges because a significant portion of the cost of the barge. But overall, we're very positive on the dry cargo market. As you said, we don't have enough orders yet for 2021 to keep those at full capacity. That's why we said we're reducing our production. But, at the same time, we also said we're keeping our three plants open because we believe so strongly in the fundamentals of the market that we have to be ready when demand comes back.
Justin Bergner -- G.research -- Analyst
Okay. That makes sense. Understood. Shifting to Energy Equipment. Again, if you've already answered this question or it's in your prepared remarks, just let me know and I'll go back and review the transcript. The orders seem predominantly weighted toward wind tower deliveries in 2021. I mean, I guess, it doesn't imply sort of as much orders on the utility structure side. Is that just sort of idiosyncratic quarter-to-quarter behaviors? Should I read anything into that?
Antonio Carrillo -- President and Chief Executive Officer
Yes. I think, the -- let's say, the thing to remark is the wind towers. The utility structure continues to be very strong. I think, we had a good quarter for orders in the utility structure and the other small business we bought. One thing to remember in the utility structure is that a lot of the orders we received that I mentioned in the previous call to Bill, from alliance customers, because they are blanket orders for the year and those have specifics. We cannot consider them part of the backlog. So, they become backlog, once we have enough details for us to consider them. So, on the utility structures, a large portion of the work we have committed for 2021, for example, is not considered in our backlog. And it will be considered as we define more specific with our customers, their needs, the timing, the pricing etc. So, on the wind tower side, it's the other way around. It's very specific. So, we can consider it part of the backlog, because it's very specific prices, timing, deliveries, etc.
Justin Bergner -- G.research -- Analyst
Okay, understood. And then, lastly, I guess, you've done a lot of M&A activity in the recent 12 months. And, are we in sort of a digest phase? Is there more that you want to do in the near-term, or is there more you can get done before end of the year to take advantage of any tax-oriented sellers? Any color there, if you haven't already addressed this question? Sorry, if you have.
Antonio Carrillo -- President and Chief Executive Officer
No. I think, we are -- the good news is that we've done a lot of M&A, mostly this year, the big one was Cherry, and then the recent one from Strata. And those are very similar businesses in locations that are relatively close. I'm never worried about our ability to digest these things, because we're not buying anything outside of our competency or outside of our normal reach, let's say. We're not buying something that we don't understand. So, I think, as long as you see us continuing to buy things that we understand and that we are focused on, I think, the sizes on the deals we've done are very digestible, and we are in good shape. Of course, the more time we give our team to digest them, the better. But, we also see some opportunities to continue to do M&A. I wouldn't say that for the next few months you should expect something big, we need to digest Strata and get that going and start pulling it out. But, we still have appetite for M&A.
Justin Bergner -- G.research -- Analyst
Okay. And if it looks like the tax regime is going to change sort of coming -- looking forward a week from now, do you think there's some bolt-on deals that would tax orient sellers that you might be able to get done before year-end? I'm just sort of curious to hear your perspective there as an industrial concern?
Antonio Carrillo -- President and Chief Executive Officer
That's what we hope. I mean, we -- that's one of the things we've been discussing, how much especially small or medium sized private companies, we've seen some conversations from those sellers saying, look, I'd like to get it done before the end of the year. They might want that. But, of course, at the same time, we have to be very-disciplined and very, I would say, cautious about doing our due-diligence, and those are the things we need to be doing. But, I can tell you, we don't have a line of people outside waiting for us to do it before the end of the year. That's not the case.
Justin Bergner -- G.research -- Analyst
And then, lastly there, are you seeing -- I mean, when you do these deals, who have you competed against to buy the companies, you're buying or the bolt-ons that you're buying, to the extent you have a reasonable sort of intuition there?
Antonio Carrillo -- President and Chief Executive Officer
Yes. We're all in the bolt-ons, it's more relationship-oriented where you develop a relationship with the seller, and I would say most of them, we've been the only company that we reach a fair price that we feel is fair for both sides and we all do it. When you go to the bigger companies, we have seen in some cases, some of the big names in the industry. But, as we go to the smaller and medium size, it's been mostly a handshake agreement that we come to and then we come to terms on pricing and then we move along together. I think, that's been the history. And the big deals, of course, you see big companies involved. When you go to smaller ones, it's more -- and that's why we like those things, because we don't -- prices don't get crazy.
Operator
And we will move next with Zane Karimi [Phonetic] with D.A. Davidson.
Zane Karimi -- D.A. Davidson -- Analyst
Juggling for a quick little follow-up color and apologies if this has already been covered, jumping on a little late as well. But, can you talk to the Construction Products Group activity for the quarter? And specifically looking around the pricing and demand dynamics of how they may have shifted from the beginning of the quarter to the end?
Scott Beasley -- Chief Financial Officer
Sure. This is Scott. So, I think the big headline from Construction Products in the quarter was our 250 basis-point improvement in margins. So, we talked a bit about volumes being up in our construction market exposure, down in oil and gas exposure, some softness related to COVID in our lightweight aggregates, in our shoring businesses. But, we're most pleased with the margin improvement, despite some of those headwinds. Aggregates, we had strong improvement from operating efficiencies, lower fuel costs and maintenance expenses. Cherry was able to do very well despite weather events. And so, overall, it shows the resilience of the portfolio in the quarter when you have some softness to be able to improve margins like we did.
Operator
We have no further questions at this time. I would now like to turn the program back to Ms. Peck for any closing remarks.
Gail M. Peck -- Senior Vice President, Finance and Treasurer
Thank you, Nicky. And thank you everyone for joining us today. We look forward to speaking with you again next quarter.
Operator
[Operator Closing Remarks]
Duration: 54 minutes
Call participants:
Gail M. Peck -- Senior Vice President, Finance and Treasurer
Antonio Carrillo -- President and Chief Executive Officer
Scott Beasley -- Chief Financial Officer
Julio Romero -- Sidoti -- Analyst
Bascome Majors -- Susquehanna -- Analyst
Stefanos Crist -- CJS Securities -- Analyst
Ian Zaffino -- Oppenheimer -- Analyst
Bill Baldwin -- Baldwin Anthony Securities -- Analyst
Justin Bergner -- G.research -- Analyst
Zane Karimi -- D.A. Davidson -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, Inc (NYSE: ACA) Q3 2020 Earnings Call Oct 29, 2020, 8:30 a.m. Davidson -- Analyst More ACA analysis All earnings call transcripts 10 stocks we like better than Arcosa, Inc. Both revenue and EBITDA were roughly even versus this year's record second quarter, despite an extraordinary number of major weather events in Houston and the Gulf Coast that impacted construction activity and our operations in those areas. | Arcosa, Inc (NYSE: ACA) Q3 2020 Earnings Call Oct 29, 2020, 8:30 a.m. Davidson -- Analyst More ACA analysis All earnings call transcripts 10 stocks we like better than Arcosa, Inc. In the liquid barge market, utilization rates continue to be low for our customers, but conditions in the dry cargo market have improved, with higher grain volumes and freight rates and very attractive steel prices. | Arcosa, Inc (NYSE: ACA) Q3 2020 Earnings Call Oct 29, 2020, 8:30 a.m. Davidson -- Analyst More ACA analysis All earnings call transcripts 10 stocks we like better than Arcosa, Inc. While demand remained healthy, adjusted EBITDA and margins in our utility structures business were lower than we expected in the quarter due to operational challenges related to COVID. | Arcosa, Inc (NYSE: ACA) Q3 2020 Earnings Call Oct 29, 2020, 8:30 a.m. Davidson -- Analyst More ACA analysis All earnings call transcripts 10 stocks we like better than Arcosa, Inc. Within our wind towers and utility structures revenue line, about half of the $22 million of revenue growth was from organic improvement. |
35424.0 | 2020-10-29 00:00:00 UTC | Validea Benjamin Graham Strategy Daily Upgrade Report - 10/29/2020 | ACA | https://www.nasdaq.com/articles/validea-benjamin-graham-strategy-daily-upgrade-report-10-29-2020-2020-10-29 | nan | nan | The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
CVR ENERGY, INC. (CVI) is a small-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: CVR Energy, Inc. (CVR Energy) is a holding company. The Company is engaged in the petroleum refining and nitrogen fertilizer manufacturing through its holdings in CVR Refining LP (CVR Refining or the Refining Partnership) and CVR Partners LP (CVR Partners or the Nitrogen Fertilizer Partnership). It operates under two business segments: petroleum (the petroleum and related businesses operated by the Refining Partnership) and nitrogen fertilizer (the nitrogen fertilizer business operated by the Nitrogen Fertilizer Partnership). The Company's Refining Partnership is an independent petroleum refiner and marketer of transportation fuels. Its Nitrogen Fertilizer Partnership produces and markets nitrogen fertilizers in the form of urea and ammonium nitrate (UAN) and ammonia. The petroleum business consists of a coking medium-sour crude oil refinery in Coffeyville, Kansas and a crude oil refinery in Wynnewood, Oklahoma.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: FAIL
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
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ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arcosa, Inc. is focused on manufacturing and producing infrastructure-related products and services. The Company provides its products to a spectrum of markets throughout construction, energy, and transportation. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. The Construction Products Group segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for infrastructure-related projects. The Energy Equipment Group segment manufactures and sells products for energy-related businesses, including structural wind towers, steel utility structures for electricity transmission and distribution, and storage and distribution containers. The Transportation Products Group segment manufactures and sells products for the inland waterway and rail transportation industries including barges, barge-related products, axles, and couplers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: FAIL
PRICE/BOOK RATIO: PASS
Detailed Analysis of ARCOSA INC
Full Guru Analysis for ACA
Full Factor Report for ACA
More details on Validea's Benjamin Graham strategy
Benjamin Graham Stock Ideas
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of CVR ENERGY, INC. Full Guru Analysis for CVI Full Factor Report for CVI ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA More details on Validea's Benjamin Graham strategy Benjamin Graham Stock Ideas About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham. | Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA More details on Validea's Benjamin Graham strategy Benjamin Graham Stock Ideas About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Detailed Analysis of CVR ENERGY, INC. Full Guru Analysis for CVI Full Factor Report for CVI ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The Company is engaged in the petroleum refining and nitrogen fertilizer manufacturing through its holdings in CVR Refining LP (CVR Refining or the Refining Partnership) and CVR Partners LP (CVR Partners or the Nitrogen Fertilizer Partnership). | Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA More details on Validea's Benjamin Graham strategy Benjamin Graham Stock Ideas About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Detailed Analysis of CVR ENERGY, INC. Full Guru Analysis for CVI Full Factor Report for CVI ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The Company is engaged in the petroleum refining and nitrogen fertilizer manufacturing through its holdings in CVR Refining LP (CVR Refining or the Refining Partnership) and CVR Partners LP (CVR Partners or the Nitrogen Fertilizer Partnership). | Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA More details on Validea's Benjamin Graham strategy Benjamin Graham Stock Ideas About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Detailed Analysis of CVR ENERGY, INC. Full Guru Analysis for CVI Full Factor Report for CVI ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham. |
35425.0 | 2020-10-13 00:00:00 UTC | Arcosa, Inc. (ACA) Ex-Dividend Date Scheduled for October 14, 2020 | ACA | https://www.nasdaq.com/articles/arcosa-inc.-aca-ex-dividend-date-scheduled-for-october-14-2020-2020-10-13 | nan | nan | Arcosa, Inc. (ACA) will begin trading ex-dividend on October 14, 2020. A cash dividend payment of $0.05 per share is scheduled to be paid on October 30, 2020. Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 8th quarter that ACA has paid the same dividend. At the current stock price of $49.05, the dividend yield is .41%.
The previous trading day's last sale of ACA was $49.05, representing a -0.69% decrease from the 52 week high of $49.39 and a 74.31% increase over the 52 week low of $28.14.
ACA is a part of the Capital Goods sector, which includes companies such as Parker-Hannifin Corporation (PH) and Baker Hughes Company (BKR). ACA's current earnings per share, an indicator of a company's profitability, is $2.44. Zacks Investment Research reports ACA's forecasted earnings growth in 2020 as 5.32%, compared to an industry average of -7.8%.
For more information on the declaration, record and payment dates, visit the ACA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ACA's forecasted earnings growth in 2020 as 5.32%, compared to an industry average of -7.8%. For more information on the declaration, record and payment dates, visit the ACA Dividend History page. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. ACA's current earnings per share, an indicator of a company's profitability, is $2.44. Arcosa, Inc. (ACA) will begin trading ex-dividend on October 14, 2020. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 8th quarter that ACA has paid the same dividend. For more information on the declaration, record and payment dates, visit the ACA Dividend History page. | ACA's current earnings per share, an indicator of a company's profitability, is $2.44. Arcosa, Inc. (ACA) will begin trading ex-dividend on October 14, 2020. Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. |
35426.0 | 2020-09-11 00:00:00 UTC | Validea Benjamin Graham Strategy Daily Upgrade Report - 9/11/2020 | ACA | https://www.nasdaq.com/articles/validea-benjamin-graham-strategy-daily-upgrade-report-9-11-2020-2020-09-11 | nan | nan | The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
DXP ENTERPRISES INC (DXPE) is a small-cap value stock in the Misc. Capital Goods industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: DXP Enterprises, Inc. (DXP) is engaged in the business of distributing maintenance, repair and operating (MRO) products, equipment and service to industrial customers. The Company operates through three segments: Service Centers, Supply Chain Services and Innovative Pumping Solutions. The Service Centers segment provides MRO products, equipment and services, including technical expertise and logistics capabilities to industrial customers. The Supply Chain Services segment manages all or part of a customer's supply chain, including procurement and inventory management. The Innovative Pumping Solutions segment provides source for engineering, systems design and fabrication. It operates from approximately 190 locations in over 40 states in the United States, approximately 10 provinces in Canada, Dubai and one state in Mexico. The Company's product categories include rotating equipment, bearings & power transmission, industrial supplies, metal working and safety products & services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: FAIL
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
Detailed Analysis of DXP ENTERPRISES INC
Full Guru Analysis for DXPE
Full Factor Report for DXPE
ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arcosa, Inc. is focused on manufacturing and producing infrastructure-related products and services. The Company provides its products to a spectrum of markets throughout construction, energy, and transportation. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. The Construction Products Group segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for infrastructure-related projects. The Energy Equipment Group segment manufactures and sells products for energy-related businesses, including structural wind towers, steel utility structures for electricity transmission and distribution, and storage and distribution containers. The Transportation Products Group segment manufactures and sells products for the inland waterway and rail transportation industries including barges, barge-related products, axles, and couplers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: FAIL
PRICE/BOOK RATIO: PASS
Detailed Analysis of ARCOSA INC
Full Guru Analysis for ACA
Full Factor Report for ACA
ZUMIEZ INC. (ZUMZ) is a small-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Benjamin Graham changed from 57% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Zumiez Inc., including its subsidiaries, is a specialty retailer of apparel, footwear, accessories and hardgoods for young men and women through the fashion, music, art and culture of action sports, streetwear and other lifestyles. The Company operates under the names Zumiez, Blue Tomato and Fast Times. Additionally, it operates e-commerce Websites at www.zumiez.com, www.blue-tomato.com and www.fasttimes.com.au. It offers various categories of shoes, such as skate shoes, casual shoes, high tops, sandals, slip ons, runners, boots and shoe accessories, such as socks. It also offers flannels, baseball tees, hoodies, baseball hats, windbreakers, shirts, jackets, jerseys, sweaters and tanks, among others. For women, it offers t-shirts, tank tops, hoodies and sweatshirts, cardigans, jackets, skirts, jeans, joggers, leggings and dresses, among others. It provides various accessories, including watches, sunglasses, bracelets, earrings, rings, beanies, hats, belts, wallets and phone accessories
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: FAIL
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
Detailed Analysis of ZUMIEZ INC.
Full Guru Analysis for ZUMZ
Full Factor Report for ZUMZ
More details on Validea's Benjamin Graham strategy
Benjamin Graham Stock Ideas
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of DXP ENTERPRISES INC Full Guru Analysis for DXPE Full Factor Report for DXPE ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA ZUMIEZ INC. (ZUMZ) is a small-cap value stock in the Retail (Apparel) industry. Company Description: Zumiez Inc., including its subsidiaries, is a specialty retailer of apparel, footwear, accessories and hardgoods for young men and women through the fashion, music, art and culture of action sports, streetwear and other lifestyles. | Detailed Analysis of DXP ENTERPRISES INC Full Guru Analysis for DXPE Full Factor Report for DXPE ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA ZUMIEZ INC. (ZUMZ) is a small-cap value stock in the Retail (Apparel) industry. Detailed Analysis of ZUMIEZ INC. Full Guru Analysis for ZUMZ Full Factor Report for ZUMZ More details on Validea's Benjamin Graham strategy Benjamin Graham Stock Ideas About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. | Detailed Analysis of DXP ENTERPRISES INC Full Guru Analysis for DXPE Full Factor Report for DXPE ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA ZUMIEZ INC. (ZUMZ) is a small-cap value stock in the Retail (Apparel) industry. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. | Detailed Analysis of DXP ENTERPRISES INC Full Guru Analysis for DXPE Full Factor Report for DXPE ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. Detailed Analysis of ARCOSA INC Full Guru Analysis for ACA Full Factor Report for ACA ZUMIEZ INC. (ZUMZ) is a small-cap value stock in the Retail (Apparel) industry. The Company operates through three segments: Service Centers, Supply Chain Services and Innovative Pumping Solutions. |
35427.0 | 2020-09-06 00:00:00 UTC | These 3 Stocks Are Ridiculously Cheap Right Now | ACA | https://www.nasdaq.com/articles/these-3-stocks-are-ridiculously-cheap-right-now-2020-09-06 | nan | nan | "Overpriced." "Too expensive." A "bubble about to burst." These are just a few of the terms people have been using to describe the red-hot stock market lately. And they've got a point: The S&P 500 and the NASDAQ Composite are both at record highs...and at lofty valuations.
But value hunters shouldn't despair. Even in an overvalued market, there are bargains to be found. We asked three of our Motley Fool contributors what stocks they think are ridiculously cheap right now. They came back with Darling Ingredients (NYSE: DAR), Owens-Corning (NYSE: OC), and Arcosa (NYSE: ACA). Here's why they think these picks are great bargains today.
Image source: Getty Images.
The future of recycling is recycling everything
John Bromels (Darling Ingredients): Darling isn't the kind of recycling company you're probably picturing. It doesn't collect aluminum cans and used plastic bottles from green bins. Instead, Darling recycles waste animal proteins and fats into usable products.
Those fats and proteins come from all kinds of crazy places: restaurant grease traps and deep fryers, bakery scrap bins, dairies, and slaughterhouses, among others. Similarly, the products Darling refines from these castoff materials -- including gelatin, grease, and meal -- are used in livestock feed, agriculture, food processing, and manufacturing.
Sound boring? It is. The most exciting part of Darling's portfolio of businesses is its Diamond Green Diesel joint venture with Valero, which adds biofuel to the list of organic products Darling refines. It's just a small part of the portfolio right now, but it's rapidly growing. During the first half of this year, Darling's share of Diamond Green Diesel's earnings was $161.3 million, up 158.5% from the first six months of 2019.
Despite outperforming expectations during the pandemic, Darling currently trades at less than 13 times earnings, near an all-time low. That's ridiculously cheap for this growing company focused on sustainability.
Building value from building materials
Lee Samaha (Owens Corning): By any measure, stock in building materials company Owens Corning is a good value. Moreover, the company has good growth prospects in the coming years. Starting with valuation matters, you can see below how the stock trades on just 12.6 times its current free cash flow and below nine times its forward earnings before interest, tax, depreciation, and amortization, or EBITDA.
Data by YCharts
The company generates profit from three segments, and they all have good growth prospects.
Data source: Owens Corning presentations.
Around 84% of demand for roofing materials comes from the U.S. residential repair and remodel market. Roofing remodeling tends to have solid underlying demand -- it's hard to live in house that's leaking water -- but the roofing segment's revenue/earnings can fluctuate from year to year as a result of the impact of storms.
The company's glass fiber composites segment is cyclically aligned to the global industrial economy and it's undoubtedly going to take a big hit from the coronavirus pandemic -- composites sales were down 26% in the second quarter. But growth should return as the construction and transportation markets open up again. Moreover, there's a long-term opportunity for glass fiber to replace heavier and weaker materials like aluminum, wood, and steel.
Finally, the insulation segment's demand is driven by a combination of international commercial and industrial activity and U.S. commercial and residential demand. While roofing demand is largely driven by U.S. remodeling and repair activity, around 26% of Owens Corning's insulation demand comes from U.S. residential new construction, and that's something likely to receive a boost as long as low interest rates continue to strengthen U.S. housing starts.
All told, Owens Corning is a company that's fully recovered from the tumult of the last housing crisis and looks set to continue generating around $600 million to $700 million in free cash flow annually over the next few years. That's a lot for a company with a market cap of just $7.53 billion.
Strengthen your portfolio with a bargain-bin infrastructure stock
Scott Levine (Arcosa): Whether you stretched the pursestrings on ice cream and other goodies this summer or you simply enjoy digging into the discount rack, Arcosa is a name that should be on your radar if you are interested in stocks that are trading at a discount.
With an operating history that spans more than 85 years, Arcosa is an infrastructure-oriented business that offers products and solutions to three main markets: construction, energy, and transportation. Investors can therefore rest assured that the company has experience weathering economic downturns such as the one we're in now. And while the company may face headwinds in one sector, its diverse exposure to other markets mitigates its risk.
Proving that investors will be picking up shares of an attractive company that belies its inexpensive price tag, the company recently reported strong Q2 2020 earnings. For one, Arcosa strengthened its balance sheet in Q2, ending the quarter with $108 million in net debt, representing a 31% quarter-over-quarter decrease. This translates to a conservative net debt-to-EBITDA ratio of 0.4, illustrating how the company is not overly reliant on leverage.
Turning to the cash flow statement, investors will find another example of the company's financial health -- strong cash flow generation. In Q2, Arcosa reported free cash flow of $56 million compared to free cash flow of negative $5 million during the same period last year, reflecting management's concerted effort to improve the company's cash flow.
Addressing how the company's financial fortitude will help the company's growth, Antonio Carrillo, Arcosa's president and CEO, stated on the Q2 2020 conference call, "As we move forward, our goal is to continue to utilize our balance sheet strength and allocate our strong cash flow generation on projects that allow us to grow in attractive markets, reduce our cyclicality, and improve our return on invested capital."
Currently, shares are changing hands at 6.6 times operating cash flow -- notably lower than their multiples of 9.8 and 9.2, which they had in 2019 and 2018, respectively. While I usually prefer to assess a stock's price tag in terms of its operating cash flow ratio by comparing it to its five-year average multiple, in the case of Arcosa, this is impossible because the stock has only been available to investors since its separation from Trinity Industries in 2018. And that's not the only indication that Arcosa is inexpensively valued. Shares are trading at 1.2 times sales, significantly lower than the 2.5 multiple of the S&P 500.
10 stocks we like better than Arcosa, Inc.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Arcosa, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2020
John Bromels owns shares of Darling Ingredients. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Darling Ingredients. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | They came back with Darling Ingredients (NYSE: DAR), Owens-Corning (NYSE: OC), and Arcosa (NYSE: ACA). Those fats and proteins come from all kinds of crazy places: restaurant grease traps and deep fryers, bakery scrap bins, dairies, and slaughterhouses, among others. Similarly, the products Darling refines from these castoff materials -- including gelatin, grease, and meal -- are used in livestock feed, agriculture, food processing, and manufacturing. | They came back with Darling Ingredients (NYSE: DAR), Owens-Corning (NYSE: OC), and Arcosa (NYSE: ACA). The future of recycling is recycling everything John Bromels (Darling Ingredients): Darling isn't the kind of recycling company you're probably picturing. Building value from building materials Lee Samaha (Owens Corning): By any measure, stock in building materials company Owens Corning is a good value. | They came back with Darling Ingredients (NYSE: DAR), Owens-Corning (NYSE: OC), and Arcosa (NYSE: ACA). In Q2, Arcosa reported free cash flow of $56 million compared to free cash flow of negative $5 million during the same period last year, reflecting management's concerted effort to improve the company's cash flow. Addressing how the company's financial fortitude will help the company's growth, Antonio Carrillo, Arcosa's president and CEO, stated on the Q2 2020 conference call, "As we move forward, our goal is to continue to utilize our balance sheet strength and allocate our strong cash flow generation on projects that allow us to grow in attractive markets, reduce our cyclicality, and improve our return on invested capital." | They came back with Darling Ingredients (NYSE: DAR), Owens-Corning (NYSE: OC), and Arcosa (NYSE: ACA). The most exciting part of Darling's portfolio of businesses is its Diamond Green Diesel joint venture with Valero, which adds biofuel to the list of organic products Darling refines. 10 stocks we like better than Arcosa, Inc. |
35428.0 | 2020-07-31 00:00:00 UTC | Arcosa, Inc (ACA) Q2 2020 Earnings Call Transcript | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-q2-2020-earnings-call-transcript-2020-08-01 | nan | nan | Image source: The Motley Fool.
Arcosa, Inc (NYSE: ACA)
Q2 2020 Earnings Call
Jul 31, 2020, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen, and welcome to the Arcosa Incorporated Second Quarter 2020 Earnings Conference Call. My name is Ashley and I will be your conference call coordinator today. [Operator Instructions]
Now, I would like to turn the call over to your host, Gail Peck, Senior Vice President, Finance and Treasurer for Arcosa. Ms. Peck, you may begin.
Gail M. Peck -- Senior Vice President, Finance And Treasurer
Good morning, everyone. Thank you for joining our second quarter 2020earnings call With me today are Antonio Carrillo, President and CEO; and Scott Beasley, CFO. A question-and-answer session will follow their prepared remarks today. A copy of yesterday's press release and the slide presentation for this morning's call are posted at our Investor Relations website www.ir.arcosa.com. A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website under the News and Events tab. Today's comments and presentation slides contain financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation.
Let me also remind you that today's conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.Please refer to the company's SEC filings for more information on these risks and uncertainties including our Form 10-K, the earnings press release we filed yesterday, and our Form 10-Q for the second quarter expected to be filed later today.
I would now like to turn the call over to Antonio.
Antonio Carrillo -- President And Chief Executive Officer
Thank you, Gail. Good morning and thank you for joining today's call to discuss Arcosa's second quarter results and our future outlook. Second quarter results demonstrated the resilience of Arcosa in the face of very challenging business conditions. We have remained fully operational during the pandemic, an essential business whose products and services help keep critical infrastructure working. Turning to slide four, here are the key messages we would like to cover on today's call. During the pandemic, we continued to prioritize the health and well-being of our employees and the communities where we operate. I want to recognize all of our employees for their incredible commitment and dedication during these difficult times. I'm extremely proud of Arcosa for continuing to support our customers and communities. This was an exceptional quarter for Arcosa across all metrics, including revenue, net income and adjusted EBITDA.
Each of our business segments posted revenue growth. Our construction business outperformed our expectations showing organic growth and the benefit of the Cherry acquisition that closed earlier this year. Our shift to more stable and diversified in markets over the last 18 months has been an important factor in enabling this growth. Another major focus area has been our cash culture. In the second quarter, we generated $56 million of free cash flow versus the use of $5 million a year ago. Our free cash flow was nearly twice our net income. An impressive result as we are successfully reducing the working capital requirements of our business and focusing on margin expansion. During the quarter, we use cash flow to pay down debt. And at the end of June, we had a relatively modest net debt of $108 million or less than half our trailing 12 months EBITDA. We have kept our leverage low while investing $314 million on acquisitions in the first half of the year, the bulk of which was Cherry.
As we move forward, our goal is to continue to utilize our balance sheet strength and allocate our strong cash flow generation on projects that allow us to grow in attractive markets, reduce our cyclicality, and improve our return on invested capital. We'll spend more time later in the call discussing the demand environment across our businesses, as well as our progress in continuing to execute on our long-term vision. Please turn to slide seven. I want to spend a few minutes discussing how we have shifted to operate in the current COVID environment. Given the essential nature of our business, we have worked hard to keep our plants operating to support our customers needs at this difficult time. At the same time, we have also prioritized the safety of our team. We have implemented protocols consistent with CDC guidelines at our plants and offices. While many of our offices have shifted to work from home, that option is not possible for our plants.
There we have implemented a number of important measures you can see on this slide. While our employees are our top priority, our community communities are important to us. Many of them are suffering. We have taken a number of steps to support the community around our plants and offices. And we have donated personal protective equipment to small businesses. Turning to slide nine. Let's look at our consolidated results for the second quarter. Our businesses performed extremely well delivering record results. Revenue grew 15% year over year, with growth in all three segments. Adjusted EBITDA grew about 50% faster than revenue, evidencing operating leverage and margin expansion coming from initiatives which we have put in place. Our Construction Product segment was the largest driver of revenue and EBITDA growth. The Cherry acquisition will close in January is performing ahead of plan. On balance, we were very pleased with how the second quarter progressed.
Scott will take you through the business lines and our financial metrics and then I will give you additional color on our short- and long-term view of our market. Scott?
Scott Beasley -- Chief Financial Officer
Thank you, Antonio, and good morning, everyone. I'll start on slide 10 and review our segment results from the second quarter. Construction Products revenue grew 28% to $148 million and adjusted EBITDA increased 46% to $38.6 million. The quarters almost $39 million of EBITDA was the highest in the segment's history. Segment EBITDA margins of 26% improved more than 300 basis points from last year's second quarter. Several factors contributed to our increase in EBITDA. The Cherry acquisition again exceeded our expectations, and we remain very positive on the growth prospects of recycled aggregates. Houston market fundamentals remain strong in the first half of the year. And although Houston construction activity may suffer from COVID-related uncertainty in the next few quarters, the fundamentals remain strong.
In our legacy natural aggregates business where our largest geographic presence is in North and Central Texas, we had a very strong quarter volumes were up significantly and we were able to improve margins through operating efficiencies, lower maintenance costs and benefits from lower fuel costs. We've had price increases in line with the industry averages across our footprint. Although our mix shift made our overall ASP lower than last year's second quarter. Weakness in oil and gas markets hurt volumes and our natural aggregates business. But our exposure to oil and gas has declined and represents a smaller portion of our segment revenue. Finally, revenue from our shoring product line declined almost 30% as customers reduced their capital expenditures. We were able to adjust our cost structure accordingly and minimize the impact on margins.
We have seen a small uptick in inquiry levels for shoring products in the last few months as customers have displayed improved confidence in their outlook. Overall, our Construction Products team did an exceptional job executing in the quarter to serve our customers in the midst of COVID related challenges, while also continuing to integrate the Cherry business. Moving to Energy Equipment on slide 11, revenue grew 9% to $223 million. Adjusted EBITDA of $30.4 million was ahead of our expectations on improved operating efficiencies. The bulk of our revenue growth came from volume improvements in our legacy transmission structures business, where demand due to grid hardening and reliability initiatives remains robust. Additionally, our new traffic structures product line, which we acquired in March of 2020 had a solid performance in the quarter and contributed to revenue growth. Wind tower units were roughly flat versus last year's second quarter. And we received additional orders to fill our production schedule for the rest of 2020.
Demand in our utility structures product line also continues to be solid. Order and inquiry activity has remained steady throughout 2020 despite the pandemic, adding to the more than $130 million worth of orders that we booked in Q4 of 2019. In addition, we have several quarters of visibility with our major alliance customers for projects that are not yet defined enough to qualify as reportable backlog. Revenues from our Storage Tank business in the US and Mexico declined year-over-year on lower shipments of large storage tanks, some of which serve oil and gas markets. Demand for our higher volume residential and commercial propane tanks remained stable. Overall margins and Energy Equipment were 13.6%, below last year due to lower pricing in wind towers, but ahead of our expectations. Our operating teams did a fantastic job executing during the quarter to exceed our margin expectations, while also integrating our traffic and concrete structures acquisitions.
Turning to slide 12, Transportation Products recorded 11% growth in revenues and 26% growth in adjusted EBITDA, as our margins improved roughly 200 basis points to 16.5%. In the barge business, our revenues were up roughly 62% primarily due to increased dry barge production, as we began delivering hopper barges that were ordered in the second half of 2019. Additionally, we delivered additional tank barges for a variety of commodity markets. Margins also improved in the barge business as we gained operating leverage from higher production levels, and our operating teams executed extremely well in the quarter. On the negative side, we received only $17 million of new orders in the quarter for book to bill of 0.16. These $17 million of orders included a mix of tank barges, hopper barges and marine components. Revenue and rail components declined roughly $28 million against last year's second quarter, although it was down only $7 million sequentially.
New railcar orders continue to be weak across the industry. But our leadership team has managed through numerous cycles in the past. As we discussed on the last call, we've taken significant actions at our components facilities to right size for lower demand, and we have been EBITDA positive throughout the down cycle. We've also had success in winning new orders for the more stable maintenance and non-rail markets. But these have not yet become large enough to offset the drop in our core business. I will now turn to slide 14, to discuss our free cash flow and liquidity highlights. We generated $56 million of free cash flow in the quarter, roughly in line with our six-quarter average, and approximately 170% of our net income in the quarter. Our strong free cash flow generation reflects excellent operating performance, as well as the cash culture that we are building throughout Arcosa.
We've made particular progress in our receivables and payables over the last year. Working capital is a key component of our incentive compensation program, and our operating teams are doing an excellent job generating cash from working capital, while maintaining our ability to meet customer needs. During the second quarter, we also repaid the precautionary $100 million borrowing on a revolver that we drew in March. Taken together, we ended the quarter with $522 million of liquidity, including $148 million of cash and $374 million of committed revolver capacity. Turning to slide 15, our strong cash flow generation in the quarter further reduced our leverage. We closed the second quarter at approximately 0.4 times net debt to EBITDA with minimal debt maturities until 2025
Our low leverage will enable us to manage through uncertain macroeconomic conditions as well as to pursue disciplined, organic and acquisition growth. We continue to manage cash tightly. We are reiterating last quarter's capital allocation outlook for the rest of 2020, which you see on slide 16. First, we continue to expect $75 million to $85 million of capital expenditures, which includes approximately $65 million of maintenance Capex, plus a select set of organic growth projects to expand capacity and utility structures and add reserves in Construction Products. We have maintained our dividend of roughly $10 million per year. And we still have $34 million remaining on our share repurchase authorization. On slide 17, we give additional color on the three complimentary acquisitions that we have made this year to expand into adjacent product lines and utility structures.
We've invested almost $60 million in acquisitions, plus an additional $10 million to organically expand our capabilities in transmission and distribution structures. The three acquisitions have combined annualized revenue of approximately $50 million and EBITDA of $9 million prior to expected growth and cost synergies. Antonia will discuss the strategic rationale and respective end markets in more detail.
I will now turn the call back over to Antonio.
Antonio Carrillo -- President And Chief Executive Officer
Thank you, Scott. As Scott detailed, our business performs well during the quarter, and we remain focused on executing our long-term strategy. slide 19 is a reminder of our vision that we introduced to the investment community when we became an independent public company in the fall of 2018. And our long-term vision for Arcosa remains the same. Shifting to slide 20, as we discussed last quarter, the COVID-19 impacts on our near-term outlook vary across our portfolio, end markets in Construction Products and Energy Equipment, representing almost 75% of second quarter EBITDA have remained healthy, while Transportation Products has experienced significant decline in new order activity. Construction activity proved to be resilient in our key states during the second quarter, helping to drive rate performance in the segment. Demand in the early part of the third quarter has been very similar -- at very similar levels. Construction Product owners have shorter lead times than other businesses. But we are watching several key indicators in our geographies to understand future demand string.
In the short-term, we're focused on state's fiscal health, learning activity and the progress of federal elections, including the upcoming expiration of the Highway Funding Bill and the potential stimulus measures. In our Energy Equipment, we are less exposed to COVID related uncertainty, as our wind towers and utility structure backlogs provide good near-term visibility and many of our market drivers remain intact. Throughout this period, demand and bidding in our utility structure business has remained strong. With wind towers the current backlog supports our 2020 production plans. And we're working with customers on 2021 orders. In our Storage Tank business, we saw some slowdown during the early stages of the pandemic, however we have continued to navigate the spirit, we see a more positive tone emerging from our customers. Our Mexico business continues to see slow demand.
On our Transportation Products business faced the most challenging near-term outlook. In components, our business as was under pressure before the pandemic continues to navigate the declining build rates for new cars. In this business, we are staying focused on cost containment, remaining cash flow positive, and continuing our efforts to diversify our customer base in end markets. As Scott mentioned, the barge business reported strong results during the quarter on higher volumes and improved pricing. However, due to increased uncertainty and low utilization rates, driven by COVID related issues, we have experienced a slowing in orders and inquiries since the beginning of the pandemic. As expected, second quarter orders were below recent quarters, totaling $17 million. On the dry cargo market we have seen an improvement in inquiries over the last few weeks, and the replacement cycle looks very positive, even the long period of below average barge build rates.
On the liquid side, given the recent low utilization rates, we're seeing less interest in barge replacement. However, we continue to see interest in projects-specific barge building. Some projects require new barges and could entail significant quantities. We have been working on this project for a while and they could take some time to become a reality. Therefore, we will be focusing on staying as flexible as possible to ramp capacity up or down to allow time for these projects to materialize, while at the same time looking to maximize profitability. Given our conviction in the strength of both the dry and liquid barge markets, we will continue to actively evaluate our footprint and capacity and adjust as necessary to allow time for the fundamentals of the business to overcome the short-term weakness in the market.
Our $259 million backlog at the end of the quarter provides visibility into early 2021. What we just discussed was the short-term view of each of our businesses, which is clouded by COVID related uncertainty. However, I will now talk about the long-term fundamentals of our business, which we continue to see as extremely positive. Please turn to slide 21. Let me start with Construction Products. We're bullish on the demand fundamentals in our most important geographies of Texas and the Gulf Coast. Given population growth, state fiscal health and the ongoing and planned infrastructure projects. The fundamental nature of the market provides additional organic and inorganic growth opportunities. Turning to Energy Equipment, the long-term drivers are highly positive as well. In utility structures, we continue to receive positive feedback from our customers around their future investments. And we expect continued strength in the market dynamics.
The replacement of aging infrastructure combined with the new programs that we have just added position us well for future growth. The telecom market should benefit with the 5G build up. And the new traffic structure business, which builds on our engineering and manufacturing capabilities is driven by infrastructure spending. We see the recent acquisitions as product lines that can be expanded to other areas of the country. On wind towers, we expect the transition in the medium term as PTC phrases out. However, we remain optimistic about the fundamental strength of renewable energy and wind specifically. Our view is that the competitiveness of the technology continued trends toward sustainability by large corporations and the focus on ESG by investors should create a favorable environment and demand for this product line or over the long term. Looking at the Transportation segment, the required replacement cycle for barges and railcars is projected to create long term demand. In our most cyclical segments, one of the key competitive advantages is our team's fantastic ability to manage cycle.
I'm extremely proud of the work they have done over the last 18-months as we navigated a contrasting rail market and at the same time increased our production to support the recovery of the barge market. Barge and rail are projected to remain key transportation modes in North America and the leading position some flexible footprints are tremendous assets. Turning to slide 22, I will discuss how we are transforming our portfolio. Consistent with our long-term plan to reduce complexity and cyclicality. Our focus on driving a cash culture to allocate capital to a long-term strategic rebalancing will be one of our priorities. When we separated from Trinity about two years ago, the business lines that generate the bulk of our EBITDA, wind towers and rail components were also the businesses with the largest potential hurdles in front of us. Our wind tower business was faced with a medium-term exploration of the production tax credit and resulting pricing pressure. Our rail components business have one major customer, which created pricing pressure, and it needed to diversify its end market. With these headwinds in mind, we defined our current long-term strategy anchored around infrastructure markets, and designed to reduce cyclicality overtime.
To start repositioning the portfolio, we completed two large construction projects acquisitions, ACG Materials and Cherry. These were done at attractive multiples and integrated nicely, providing platforms for additional growth. In the Energy Equipment, we focused first on getting better, expanding lean practices throughout the segments that resulted in significant margin improvement. Once the operational improvements gained traction, we started executing the growth plan into adjacent markets with three small acquisitions. As a result of the strategy and execution over the last 18-months, the two businesses with the most sustainable growth potential construction materials and utility structures have replaced wind towers and rail components as the two main contributors to our EBITDA.
Over the last 18 months, we have completely changed the mix and resiliency of our portfolio, which has proved invaluable during these uncertain times. Slide 23 shows expansion of our utility structure business into adjacent infrastructure related product lines. This has been small acquisitions. However, the goal is to leverage the engineering and manufacturing resources of our concept to enhance and accelerate their growth into other products and geographies. Turning to slide 24, and 25, we highlight our continued commitment to ESG. In August, we plan to publish our midyear ESG update, which will include more on our goals and plans, and we remain on pace to publish our full year sustainability report in 2021. As for final thoughts slide 26 gives our courses value proposition a portfolio of industry leading infrastructure businesses and experienced management team extremely low leverage with capacity to invest in disciplined growth opportunities, focused on capital allocation with a plan to grow and a strong track record of delivering and executing. When COVID-19 has brought on new challenges, we continue to work every day toward advancing our long-term vision.
Operator, I would like to open the call to questions.
Questions and Answers:
Operator
[Operator Instructions] And we'll take our first question from Ian Zaffino with Oppenheimer. Please go ahead
Ian Zaffino -- Oppenheimer -- Analyst
Hi, great. Thank you very much. Can you guys just talk a little bit more on the barge side on the order front? Nobody really seen from the end markets, not necessarily the barge utilization. But if you dig deeper into what the barges are transporting.
Can you maybe give us like a sense of like what's going on in those markets or what your outlook for those markets are? And then how that would then translate into higher utilization, which would then mean higher orders?
Antonio Carrillo -- President And Chief Executive Officer
Sure. Thank you, Ian. Let me start with the dry cargo market. As we've mentioned, we are seeing improved inquiries over the last few weeks from customers. And the biggest thing there, as always is the agricultural markets. And I think the biggest thing to be watching is the relationship with China and the exports to China. I think if you look at the crop for this year, and some of the expectations for exports, they're looking more promising. And there's at least some good news coming out of the Chinese market in terms of pricing for corn, etc., that I think paints a relatively better picture in terms of demand for dry cargo barges.
The other piece that's important in dry cargo is that the replacement cycle should be really strong. We've had several years of very, very low demand for dry cargo barges. We were just getting started. Most of the growth this quarter came from our dry cargo production which is ramping up very nicely. So, I think between some relatively positive news on the agricultural side and the replacement cycle, we should see -- and COVID is going to create some uncertainty in the short-term, but we should see a relatively solid demand for dry cargo barges over the several years.
On the liquid side some refined products and petrochemicals and on derivatives are the ones that have been very slow over the last few months. Petrochemical capacities low refineries have slowed down significantly as people don't use their car, where planes are not flying, etc., etc.. And that creates short-term, a low utilization rates on the barges, which is a significant problem because that the people don't require as many barges, the river system becomes more efficient, etc., etc.. So in the short-term, I think, until we have more clarity on how this virus gets controlled and people start doing their normal life, it's going to be choppy I think in terms of utilization rates.
On the other hand, we have talked about some specific projects that we are continuing to work on. And these projects could be large, and they are very specific. These would not be things that are currently being moved on the river system, but this is additional things that can be moved and require new barges. So, we've been working with potential customers to attack these projects. And that's why we've said that our goal in the short-term is to stay very flexible so that we can ramp our production up or down depending on how these projects materialize and be able to have flexibility because these projects take time to materialize.
Ian Zaffino -- Oppenheimer -- Analyst
Can you give us some specific examples? What Cherry has brought to you? And how you've seen them materialize in this quarter? Maybe an example or two would be helpful. Thanks.
Antonio Carrillo -- President And Chief Executive Officer
Absolutely. So several things on Cherry. I think the first thing that Cherry brought up and when you're buying a company is sometimes hard to predict how that's going to work out, but I think that Cherry brought in an incredible culture with them, an incredible team. They are extremely, extremely result driven and extremely result full. And they bought a really solid list of projects that they were actually executing on before we bought them. So I think the first thing that they brought their cultural and they brought their team, which is incredible. In terms of things that they're doing, let me give you a couple of examples. So, they have a list of additional properties that they wanted to buy so that we could expand some of their areas of influence around Houston. And we're working on that. We've already bought a couple of properties and we have several more in the pipeline.
Another good example is if you look at the Houston market, there is really very little rock most of it is sand and Cherry bought mostly sand. But especially during the rainy season, there's a significant demand for rock. And Cherry was not able to get rock they get they, they get some large rocks from the recycled concrete. But now we're working with our Mexico team. And we are starting to import rock from Mexico to Houston area and that's a few examples of the projects that they had in their pipeline that I think would be Arcosa footprint, we are able to enhance. And then you have the additional growth that we expect from Cherry.
Right now we are finalizing the integration and getting to learn the business. But the goal is to replicate the business model in other geographies and that's what we're going to take it in the next stage. And recycled aggregate for sure is something that we did not do before. We are learning the business. It is a very appealing business and there's opportunities, I think in several geographies in the country, and especially in places where we are already operating. And it fits very well with our ESG strategy. So I think all in all the Cherry acquisition has been very, very successful.
Ian Zaffino -- Oppenheimer -- Analyst
Alright, thank you very much. Appreciate the color.
Operator
And will take our next question from Brent Thielman with D.A. Davidson. Please go ahead.
Brent Thielman -- D.A. Davidson -- Analyst
Great, thank you. Good morning.
Antonio Carrillo -- President And Chief Executive Officer
Good morning.
Scott Beasley -- Chief Financial Officer
Good morning, Brent.
Brent Thielman -- D.A. Davidson -- Analyst
Antonio, on Construction Products, and it looks like Cherry in your natural aggregates business performed really well. Can you help us understand the headwinds phased from the specialty business? Is that tied to specific markets? Or was it because it wasn't considered essential? And do you see those headwinds potentially fading there in the second half?
Antonio Carrillo -- President And Chief Executive Officer
Sure. So, Construction, and then we've aggregates, we have specialty and we have Shoring. And within aggregates we have Cherry with recycled. But on the specialty side, there were a couple of headwinds. First, it's a more national footprint that we have. And there's regions where we have a specific a shutdown. So we had to shut down a small facility in the northwest, in Washington State. And then we have a facility in California where we have to also slow down significantly, and not only us, but especially our customers, if you think about it.
The facility we shut down was not because we were forced to shut down, but because our customers were shut down. So, demand locally was not working well and we have to slowdown and several projects got delayed. So, that's one specific issue. On the Shoring, Scott mentioned in his comments. It's also a national footprint even though we were only producing in one state. And we are starting now to produce in Mexico. We're shifting some production to Mexico as we have significant demand and couldn't keep up with demand in the first quarter.
But our main production is in Michigan, and we ship nationally. And something happened to us in terms of Capex, as Scott mentioned. So some of our customers see this as Capex. And like everyone's slowed down Capex in the in the second quarter as they're trying to predict what's going to happen. But as Scott mentioned, also as the months have gone by, we're starting to see more positive tone from our customers and things are starting to improve. So the view that we have from both specialty materials and Shoring in May was very big. And as the quarter progressed, light started turning on and it started looking better. I think every time we talk to our team, it sounds better. So, we are we're optimistic about the future of both businesses.
Brent Thielman -- D.A. Davidson -- Analyst
Yes. So, it sounds like on specialty it's more demand disruption versus demand distraction. Is that...
Antonio Carrillo -- President And Chief Executive Officer
That's correct.
Brent Thielman -- D.A. Davidson -- Analyst
Okay. And then on barge, I mean, this year looks pretty solid with the book of business that you have on hand. Antonio, what point do you begin to get concerned about next year for the barge business and have to kind of consider taking those cost actions if you need to see another quarter or two orders like this before we can really say next year is going to be a tough year?
Antonio Carrillo -- President And Chief Executive Officer
Yes. I'm absolutely convinced that the fundamentals of the business are really strong and that the replacement cycle and the drivers of the business and our position in the industry, the dynamics and our position, our competitive position are great. So, I think more than a concern, I will tell you my focus right now is going to be on making sure that we can stay very flexible, to be able to allow those fundamentals of the industry to overcome the short-term COVID related disruptions.
And that's why we've said we're going to be watching our footprint and our manufacturing capacity. And if needed, we're going to slowdown to be able to match the short-term demand, but we want to keep our flexibility, so we can ramp-up as soon as it picks back-up. So, what happened to us if you remember a year and a half ago, as demand picked-up, we didn't have the capacity to reopen as fast as we should have opened. And that's why we decided to open a third plant. And this time what I want to do is keep the flexibility I don't want to sell barges that the market doesn't need.
But I want to keep the flexibility to be able to ramp-up production fast up and down. And that means, of course watching our cost structure and flexing our cost structure down as we've done in the past, as we know this business, we're very good at it. We never lose money when things go down. And our idea is to continue to focus on profitability and maintaining our margins while staying flexible.
Brent Thielman -- D.A. Davidson -- Analyst
Okay, thank you for taking my questions. I appreciate it.
Operator
And we'll take our next question from Julio Romero with the Sidoti and Company. Please go ahead.
Julio Romero -- Sidoti and Company -- Analyst
Hey, good morning. Hope you all are well. Just wanted to ask about that trench shoring business, what are you hearing from your equipment rental company, customers regarding, their willingness to deploy capital for Capex, has some of the uncertainty that maybe felt earlier in the year subsided or are they kind of waiting for maybe the other shoe to drop there?
Antonio Carrillo -- President And Chief Executive Officer
Julio, thank you for the question. Yes, the end of the March, April, is basically all Capex close. And I say as Scott mentioned in his remarks, and we are seeing more positive tone from our customers in terms of capital deployment. And we have started to receive more orders in the last few months. And we see a more positive tone from them and from our team, in terms of market conditions. So, I think we are optimistic about that business and the fundamentals. And hopefully this is just a short-term blip in terms of order slowdown. But we are seeing improved trends over the last few months.
Julio Romero -- Sidoti and Company -- Analyst
That's helpful. And what does your crystal ball tell you about maybe lower Texas feels from the infrastructure budget, in terms of like the cadence of when that is? I mean, does that impact you, when could that begin to affect you?
Scott Beasley -- Chief Financial Officer
Yeah, sure Julio, this is Scott. I think, most of our biggest data is Texas and that's the one we watch most closely. Texas feels pretty solid for the third quarter and then probably into the fourth quarter. We've had several positive quarters of laying data. The DoT has come out and said that they reiterated their $77 billion 10-year plan. So, overall we're optimistic that the fundamentals are still strong in Texas.
There have been some headwinds in the recent months with sales tax revenue being down, April and May were the worst months but then it bounced back up in June. So, overall, we're positive in Texas and our other core states although, we will watch those tax receipts closely and look at the impact that they have on state budget.
Julio Romero -- Sidoti and Company -- Analyst
Got it, appreciate the color there. And then just a last one is on the Energy Equipment side. You are investing in transportation and distribution. You seem pretty optimistic about the outlook there. I was just hoping if you can talk about the communications infrastructure opportunities both in the near term and long term? Thank you.
Antonio Carrillo -- President And Chief Executive Officer
Sure. So, if you think about the structures utility, traffic structures, telecom structures, at the end of the day, similar engineering, similar manufacturing footprint. And they fit very well into that part of the process which is the manufacturing that we have in the expertise and engineering. So, it's a similar product. The end markets are very different and driven by different dynamics. But all these markets we like their dynamics. The telecom market that you referenced, the company we bought does not do this micro sales or very small sales that are attached to buildings or traffic lights or things like that. This company makes larger structures both rails and poles, many rails [Phonetic]. And this sales structure support the micro structures around in the city.
So, you need these big towers to support the smaller ones. And with the 5G rollout, we think there's going to be significant opportunity to grow this company, not only where it is right now. But we have manufacturing capabilities across the country and the idea is to be able to use our manufacturing capabilities to replicate this business across the U.S. Same thing with the traffic structures, with the size in project structures that we bought in Florida. And this is the business that's driven by infrastructure spending. And right now we have a great position in Florida.
But we want to replicate the business across the U.S. and that's one of our biggest projects also. And finally, we bought a small concrete pole manufacturing. This is cast concrete small poles. And the idea is that, we want to be able to approach our customers and offer them not only steel structures but concrete structures also. So, the idea is to widen our portfolio approach for our customers and also widen our markets. So that as we said, try to reduce the cyclicality of the business and don't depend on the single market even though we are extremely bullish on the utility market.
Operator
And we'll go next to Stefanos Crist with CJS Securities. Please go ahead.
Stefanos Crist -- CJS Securities -- Analyst
Good morning. Thanks for taking our questions.
Antonio Carrillo -- President And Chief Executive Officer
Good morning.
Stefanos Crist -- CJS Securities -- Analyst
I'd like to start discussing M&A, your strong liquidity and net debt as well. Is the strategy to focus on smaller tuck-ins due to just the market uncertainty or are you still willing to make a bigger acquisition if you find the right opportunity?
Antonio Carrillo -- President And Chief Executive Officer
So, I think Stefanos, let's say both are open opportunities for us. On the small side, we continue to see small opportunities on the aggregate side and specialty materials that I think could be tuck-ins and things that we can easily do and opportunities that we have our pipeline of. And so those are relatively seeing there and there they complement those very, very well. On the larger side, if you think, if you look our numbers, I think what you're seeing from the companies we would like to buy, they're probably doing well, if they're doing -- if they're serving similar markets. So, we are not looking right now, we don't see that as an area of or as a time to buy a very, very cheap things that are out there. I don't think there are any cheap things out there, or things that we would be interested in.
We will continue to look at our long-term strategy and find opportunities of things that we like that are extremely valuable, and that we will be willing to pay. At the same time as we've talked about there's some uncertainty in the future. So we are going to be very disciplined. We're going to be watching our fundamentals. We're going to be watching our markets to make sure that we are on solid ground before we commit to anything. We're always evaluating opportunities, we have a pipeline of opportunities.
And I think we are willing to do both small and larger things. But at the same time, very disciplined around what we're looking for, the price we would pay. And remembering our goal, our goal is that we're going to try to reduce the cyclicality and complexity and increase our return on invested capital. So we will keep those things as major focus for our decision making.
Stefanos Crist -- CJS Securities -- Analyst
That makes sense. Thank you. And in terms of barge, with utilization rates lower, are you seeing any market shifts, maybe your typical customers are deciding to rent versus buy just to save on Capex as well?
Antonio Carrillo -- President And Chief Executive Officer
I think there's shifts in what we're seeing from some of our customers, I think how they approach the market. Some of our customers are finding different approach to market conditions that for some people work better for others and could generate the additional barge demand for some customers that traditionally have not bought from us. So, I think this market of course, what's important for our customers is their balance sheet. Some are very well capitalized, some are less well capitalized. So we're going to be watching for that. I think, again, this -- I think this is a very short-term thing that we have to navigate through.
But the fundamental of the barge market is just incredible, it's a really, really great market for us. And I think it's going to recover. When we talk to the other people that are in the business. The faster the adjustments happen in the oil market, the faster it comes back. So, right now it is a demand issue. So the demand is the problem, it is not a supply issue in terms of barges. And demand needs to come back for this to get solves. So hopefully that happens soon and we are seeing different approach to the market. To your question, we are seeing different approaches to these conditions from different customers.
Stefanos Crist -- CJS Securities -- Analyst
Got it. Okay. Thank you very much. We'll take our next question from Bascome Majors with Susquehanna. Please go ahead.
Bascome Majors -- Susquehanna -- Analyst
Yes, Scott. Clearly, there's some uncertainty to say the least around where revenues and EBITDA will fall in the second half. But we have seen a number of cyclical companies maybe be a little more willing to frame their free cash flow expectations just given the inherent buffers of working capital and discretionary Capex there. Any thoughts from you guys on either the range of or even just the floor to what you think you can deliver on free cash flow this year despite the challenges would be helpful as we think about where the business itself is headed? Thanks.
Scott Beasley -- Chief Financial Officer
Sure Bascome. This is Scott. Let me give you some color free cash flow. So we generated $76 million of free cash flow in the first half, which was a really strong first half performance. In the third quarter, we expect another strong free cash flow performance. The fundamentals of the business remain strong. We expect to continue to make working capital improvements. The fourth quarter is, when we expect a bit of a drag on free cash flow, because we have some projects that we've already gotten paid for, so advanced billings that we received in the fourth quarter of last year, it will have some contracts where we won't collect them until Q1, so we would expect to drag in Q4.
But when you put it all together, we expect free cash flow to be right around if not higher than 100% of our net income for the year. That follows a year last year, when we had more than 200% free cash flow conversion. So put last year with this year, two really strong years of free cash flow and this year individually, we expect great free cash flow.
Bascome Majors -- Susquehanna -- Analyst
I appreciate that detail there. The last one for me. I mean, we've talked about M&A in the positioning a couple different ways. And, Antonio, I appreciate the long-term slide you frame kind of how far you've come in the last two years. We look at the next two or three years for Arcos, where do you seek to opportunistically focus the portfolio by maybe monetizing some businesses that are becoming less core overtime?
Antonio Carrillo -- President And Chief Executive Officer
Absolutely. Thank you Bascome. So a couple of things there. First, as you saw in that slide, for the first time this was our largest EBITDA contributor is construction materials this quarter and even in the first half of the year. So I think that tells you a lot about what we were trying to say about a couple of years ago how we were going to reposition the business. And I would say that this trend of growing the construction and utility structure business products around it will continue to be the trend that you should see. And at the same time as we see opportunities there.
If you ask me a couple of years from now, should we see some changes in the portfolio divestitures? I think you should expect us to be working on them. At the same time, with conditions as they are, it's not easy to find buyers of things that we can find a better place where they fit better. So, I think you should see us and expect us to be working on them. I hope conditions are such that we can execute well, I think it's just as important to buy these things for our investor community just as important to tell them we're buying these things as to give you the sign that we are really simplifying the portfolio and taking the steps to become a simpler story.
So, it's our priority. We have it. We are clear on it. And just to give you a little more color on Scott's thoughts on working capital and cash flow for the second half, just I want to complement his thoughts. The fourth quarter looks to be a drag. And if you ask me in the first quarter and the second quarter look to be a drag. And, with this COVID uncertainty, things are clouded in the short-term because we don't know how things are happening. So, at least we're in the beginning of the third quarter, we have time to adjust. And we'll be adjusting with our businesses to try to make the fourth quarter not blind. But right now it looks like that, but we're going to be working, we still have time.
Bascome Majors -- Susquehanna -- Analyst
Thank you both. I really appreciate it.
Operator
And it does appear that there are no further questions at this time. And I'll turn the call back over to you Ms. Peck for any closing remarks.
Gail M. Peck -- Senior Vice President, Finance And Treasurer
Thank you, Ashley. Thank you, everyone for joining us today. We look forward to speaking with you again next quarter.
Operator
[Operator Closing Remarks]
Duration: 51 minutes
Call participants:
Gail M. Peck -- Senior Vice President, Finance And Treasurer
Antonio Carrillo -- President And Chief Executive Officer
Scott Beasley -- Chief Financial Officer
Ian Zaffino -- Oppenheimer -- Analyst
Brent Thielman -- D.A. Davidson -- Analyst
Julio Romero -- Sidoti and Company -- Analyst
Stefanos Crist -- CJS Securities -- Analyst
Bascome Majors -- Susquehanna -- Analyst
More ACA analysis
All earnings call transcripts
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, Inc (NYSE: ACA) Q2 2020 Earnings Call Jul 31, 2020, 8:30 a.m. Davidson -- Analyst Julio Romero -- Sidoti and Company -- Analyst Stefanos Crist -- CJS Securities -- Analyst Bascome Majors -- Susquehanna -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. As we move forward, our goal is to continue to utilize our balance sheet strength and allocate our strong cash flow generation on projects that allow us to grow in attractive markets, reduce our cyclicality, and improve our return on invested capital. | Davidson -- Analyst Julio Romero -- Sidoti and Company -- Analyst Stefanos Crist -- CJS Securities -- Analyst Bascome Majors -- Susquehanna -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. Arcosa, Inc (NYSE: ACA) Q2 2020 Earnings Call Jul 31, 2020, 8:30 a.m. As for final thoughts slide 26 gives our courses value proposition a portfolio of industry leading infrastructure businesses and experienced management team extremely low leverage with capacity to invest in disciplined growth opportunities, focused on capital allocation with a plan to grow and a strong track record of delivering and executing. | Arcosa, Inc (NYSE: ACA) Q2 2020 Earnings Call Jul 31, 2020, 8:30 a.m. Davidson -- Analyst Julio Romero -- Sidoti and Company -- Analyst Stefanos Crist -- CJS Securities -- Analyst Bascome Majors -- Susquehanna -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. Shifting to slide 20, as we discussed last quarter, the COVID-19 impacts on our near-term outlook vary across our portfolio, end markets in Construction Products and Energy Equipment, representing almost 75% of second quarter EBITDA have remained healthy, while Transportation Products has experienced significant decline in new order activity. | Arcosa, Inc (NYSE: ACA) Q2 2020 Earnings Call Jul 31, 2020, 8:30 a.m. Davidson -- Analyst Julio Romero -- Sidoti and Company -- Analyst Stefanos Crist -- CJS Securities -- Analyst Bascome Majors -- Susquehanna -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. Good morning and thank you for joining today's call to discuss Arcosa's second quarter results and our future outlook. |
35429.0 | 2020-07-10 00:00:00 UTC | Cash Dividend On The Way From Arcosa (ACA) | ACA | https://www.nasdaq.com/articles/cash-dividend-on-the-way-from-arcosa-aca-2020-07-10 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/20, Arcosa Inc (Symbol: ACA) will trade ex-dividend, for its quarterly dividend of $0.05, payable on 7/31/20. As a percentage of ACA's recent stock price of $38.08, this dividend works out to approximately 0.13%.
In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ACA is likely to continue, and whether the current estimated yield of 0.53% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of ACA shares, versus its 200 day moving average:
Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.01.
In Friday trading, Arcosa Inc shares are currently up about 1.1% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a percentage of ACA's recent stock price of $38.08, this dividend works out to approximately 0.13%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ACA is likely to continue, and whether the current estimated yield of 0.53% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.01. | As a percentage of ACA's recent stock price of $38.08, this dividend works out to approximately 0.13%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ACA is likely to continue, and whether the current estimated yield of 0.53% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.01. | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/20, Arcosa Inc (Symbol: ACA) will trade ex-dividend, for its quarterly dividend of $0.05, payable on 7/31/20. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ACA is likely to continue, and whether the current estimated yield of 0.53% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.01. | As a percentage of ACA's recent stock price of $38.08, this dividend works out to approximately 0.13%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ACA is likely to continue, and whether the current estimated yield of 0.53% on annualized basis is a reasonable expectation of annual yield going forward. Looking at the universe of stocks we cover at Dividend Channel, on 7/14/20, Arcosa Inc (Symbol: ACA) will trade ex-dividend, for its quarterly dividend of $0.05, payable on 7/31/20. |
35430.0 | 2020-06-17 00:00:00 UTC | Acacia Mining employees released from Tanzania jail | ACA | https://www.nasdaq.com/articles/acacia-mining-employees-released-from-tanzania-jail-2020-06-17 | nan | nan | By Nuzulack, Dausen and Helen Reid
DAR ES SALAAM, June 17 (Reuters) - Three employees of Acacia Mining, a former Barrick Gold ABX.TO unit, were released from jail in Tanzania on Tuesday after agreeing a plea bargain deal, two sources with direct knowledge of the matter told Reuters on Wednesday.
Deodatus Mwanyika, Alex Lugendo, and Assa Mwaipopo had been imprisoned since October 2018 when Tanzanian authorities charged three of Acacia's local subsidiaries with dozens of offences including money laundering and tax evasion.
The three pleaded guilty to tax evasion, a source said.
They agreed a plea bargain deal under which they would each pay a fine of 1.5 million Tanzanian shillings ($649.35), having been found guilty of tax evasion, one source said.
Barrick, which bought out Acacia Mining last year, declined to comment when asked about the release.
In May, Barrick resumed exporting gold for the first time since a ban on shipments in 2017 and paid an initial $100 million to settle the dispute.
The tax dispute between Acacia and the government escalated three years ago when the miner was accused of overstating how much gold it was exporting and operating illegally in the country. It has denied all wrongdoing.
($1 = 2,310.0000 Tanzanian shillings)
(Additional reporting by Zandi Shabalala, editing by Louise Heavens)
((Helen.Reid@thomsonreuters.com; +27 11 595 2852;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Deodatus Mwanyika, Alex Lugendo, and Assa Mwaipopo had been imprisoned since October 2018 when Tanzanian authorities charged three of Acacia's local subsidiaries with dozens of offences including money laundering and tax evasion. The tax dispute between Acacia and the government escalated three years ago when the miner was accused of overstating how much gold it was exporting and operating illegally in the country. By Nuzulack, Dausen and Helen Reid DAR ES SALAAM, June 17 (Reuters) - Three employees of Acacia Mining, a former Barrick Gold ABX.TO unit, were released from jail in Tanzania on Tuesday after agreeing a plea bargain deal, two sources with direct knowledge of the matter told Reuters on Wednesday. | By Nuzulack, Dausen and Helen Reid DAR ES SALAAM, June 17 (Reuters) - Three employees of Acacia Mining, a former Barrick Gold ABX.TO unit, were released from jail in Tanzania on Tuesday after agreeing a plea bargain deal, two sources with direct knowledge of the matter told Reuters on Wednesday. Deodatus Mwanyika, Alex Lugendo, and Assa Mwaipopo had been imprisoned since October 2018 when Tanzanian authorities charged three of Acacia's local subsidiaries with dozens of offences including money laundering and tax evasion. Barrick, which bought out Acacia Mining last year, declined to comment when asked about the release. | By Nuzulack, Dausen and Helen Reid DAR ES SALAAM, June 17 (Reuters) - Three employees of Acacia Mining, a former Barrick Gold ABX.TO unit, were released from jail in Tanzania on Tuesday after agreeing a plea bargain deal, two sources with direct knowledge of the matter told Reuters on Wednesday. Deodatus Mwanyika, Alex Lugendo, and Assa Mwaipopo had been imprisoned since October 2018 when Tanzanian authorities charged three of Acacia's local subsidiaries with dozens of offences including money laundering and tax evasion. Barrick, which bought out Acacia Mining last year, declined to comment when asked about the release. | By Nuzulack, Dausen and Helen Reid DAR ES SALAAM, June 17 (Reuters) - Three employees of Acacia Mining, a former Barrick Gold ABX.TO unit, were released from jail in Tanzania on Tuesday after agreeing a plea bargain deal, two sources with direct knowledge of the matter told Reuters on Wednesday. Deodatus Mwanyika, Alex Lugendo, and Assa Mwaipopo had been imprisoned since October 2018 when Tanzanian authorities charged three of Acacia's local subsidiaries with dozens of offences including money laundering and tax evasion. Barrick, which bought out Acacia Mining last year, declined to comment when asked about the release. |
35431.0 | 2020-05-26 00:00:00 UTC | ACA Makes Bullish Cross Above Critical Moving Average | ACA | https://www.nasdaq.com/articles/aca-makes-bullish-cross-above-critical-moving-average-2020-05-26 | nan | nan | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) crossed above their 200 day moving average of $38.37, changing hands as high as $38.75 per share. Arcosa Inc shares are currently trading up about 6.1% on the day. The chart below shows the one year performance of ACA shares, versus its 200 day moving average:
Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.03.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) crossed above their 200 day moving average of $38.37, changing hands as high as $38.75 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.03. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) crossed above their 200 day moving average of $38.37, changing hands as high as $38.75 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.03. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) crossed above their 200 day moving average of $38.37, changing hands as high as $38.75 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.03. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) crossed above their 200 day moving average of $38.37, changing hands as high as $38.75 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.03. Arcosa Inc shares are currently trading up about 6.1% on the day. |
35432.0 | 2020-04-29 00:00:00 UTC | Arcosa, Inc (ACA) Q1 2020 Earnings Call Transcript | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-q1-2020-earnings-call-transcript-2020-04-29-0 | nan | nan | Image source: The Motley Fool.
Arcosa, Inc (NYSE: ACA)
Q1 2020 Earnings Call
Apr 29, 2020, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen, and welcome to the Arcosa Incorporated First Quarter 2020 Earnings Conference Call. My name is Nicky and I'll be your conference call coordinator today. As a reminder, today's call is being recorded.
Now I would like to turn the call over to your host, Gail Peck. Ms. Peck, you may begin.
Gail M. Peck -- SVP, Finance & Treasurer
Good morning, everyone. Thank you for joining our first quarter 2020earnings call With me today are Antonio Carrillo, President and CEO; and Scott Beasley, CFO. A question-and-answer session will follow their prepared remarks today. A copy of yesterday's press release and a slide presentation for this morning's call are posted at our Investor Relations website www.ir.arcosa.com. A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website under the News and Events tab.
Today's comments and presentation slides contain financial measures that have not been prepared in accordance with generally accepted accounting principles. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation. Let me also remind you that today's conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the Company's SEC filings for more information on these risks and uncertainties, including our Form 10-K, the earnings press release that we filed yesterday and our Form 10-Q for the first quarter expected to be filed later today.
I would now like to turn the call over to Antonio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Gail. Good morning and thank you for joining today's call to discuss Arcosa's first quarter results and business outlook. I will provide you with the current conditions within our markets, the highlights of our first quarter performance and later discuss our business line expectations, while Scott will update you on the first quarter financials.
Please move to slide 4. There are several key messages I would like you to take away from today's call. First, Arcosa's business continues to operate well within the COVID-19 environment. We have been designated an essential business and our facilities are operational. Second, we have implemented business continuity plans and have adopted protocols to protect the health and safety of our employees, and the communities in which we operate. This is our priority and I would like to recognize all of our teams for how quickly and effectively these protocols were put in place.
Third, Arcosa's strong financial quarter performance shows the earnings power we have and our strong balance sheet provides us with flexibility in this uncertain time and the capacity for significant growth opportunities for the future. And fourth, while we expect lower demand for some of our product lines, in some others we continue to see strong fundamentals and have substantial backlog that provide good visibility.
On page 5 you can find the agenda for today's call. Let's start by discussing our priorities during the COVID-19 health crisis from slide 7. First and foremost, our top priority, the health and safety of our 6,300 employees and the communities in which we operate. To that end, we immediately put in place safeguards at our facilities, consistent with CDC guidelines. We also implemented work-from-home protocols for our office staff and are making plans for how we return to our offices once it's authorized and safe to do so. As an essential supplier to the nation's infrastructure sectors, we have continued operating the plants to meet our customers' needs in every business, and as you can see from our first quarter results we have not missed a beat.
Our strong liquidity position and financial flexibility are now even greater competitive advantages than they were only just a few months ago. I know from experience having strong balance sheet is key to successfully navigating through an economic downturn. Scott will review this in more detail, but from a high level we have about $200 million of cash, plus $274 million in revolver availability.
Net debt is roughly half of our annual EBITDA and we expect strong free cash flow. Additionally, we have taken actions to reduce operating and corporate costs and have postponed non-essential capital expenditures to ensure we are prepared for a potential extended slowdown. Arcosa's strong balance sheet provides us with the resources to make strategic acquisitions on a disciplined basis at attractive prices should they become available.
Now let's turn to slide 9 for a look at the Company's wide results. For the first quarter, the Company performed extremely well with revenues of $488 million, up 19% year-over-year. All three business lines contributed to this growth. Adjusted EBITDA of $76 million was up 29% reflecting the considerable operating leverage we continue to achieve. Adjusting for a bad debt recovery of $3 million last year within the Energy Equipment, all business lines contributed to the profit growth with Construction Products being the largest contributor to this quarter's revenue and EBITDA growth.
This segment benefited from the recent acquisition of Cherry which is performing ahead of plan. Importantly, both our utility structures and large businesses showed healthy order intake in the first quarter. Scott will give you more details on the individual business lines and then I will return to provide you additional market color and discuss our outlook. Scott?
Scott Beasley -- Chief Financial Officer
Thank you, Antonio, and good morning everyone. I'll start on slide 10 of the presentation and walk through our results from the quarter and then discuss our financial strength and capital allocation plans in more depth. Starting with Construction Products, revenue grew 41% to $149 million and adjusted EBITDA increased 49% to $32.1 million. EBITDA margins increased to 21.5%, more than 100 basis points better than last year's first quarter. The legacy businesses performed well during the quarter and the Cherry acquisition exceeded our expectations.
Volumes in our legacy business were higher for both our natural aggregates and specialty lightweight aggregates businesses as Dallas-Fort Worth and Texas end markets remained robust throughout the quarter. Additionally, the Cherry acquisition exceeded our expectations. The Houston construction market remained solid and the team did an excellent job executing during the integration. The only weak spot in this segment was continued softness in our West Texas and Oklahoma aggregate plants serving oil and gas infrastructure, but that exposure is a small part of our revenue in this segment and the segment still posted strong revenue and margin improvements even with the exposure.
Moving to Energy Equipment on slide 11, revenue grew 7% to $223 million and adjusted EBITDA was roughly flat once we adjust for a one-time bad debt recovery in 2019. Higher volumes in both wind towers and utility structures drove our increased revenue, which was even more impressive given that lower pass-through steel prices were a pricing headwind for utility structures in the quarter. The wind towers team continued to execute well and delivered a higher unit count than the first quarter of 2019, including the successful delivery of a run of a larger tower type.
Pricing, as expected, was lower in the quarter than last year's first quarter, but in line with the expectations that we laid out heading into the year. Utility structures continues to be a very strong performing product line. We delivered higher volumes with improved margins. Our storage tank business declined year-over-year on lower shipments of residential and commercial propane tanks.
Adjusted EBITDA in the first quarter was $33.6 million, which was in line with our expectations. 2019 EBITDA was helped by $2.9 million of one-time bad debt recovery. In 2020, we had a $1.3 million loss on impaired assets as we transition to plan from supporting railcar component work to utility structures. Overall, the Energy Equipment segment continued its progress on lean improvements and recorded an excellent financial and operational quarter.
Turning to slide 13, Transportation Products had 20% growth in revenues and 55% growth in adjusted EBITDA. Barge revenues and profitability grew significantly versus the first quarter of 2019. In the barge business, margins expanded significantly versus last year's first quarter. We had improved pricing in the backlog and we did not have the start-up costs from reopening our Louisiana plant that we incurred in 2019.
The operating team did an outstanding job hitting our production schedule. In addition to strong execution in the quarter, order activity continued to be healthy. We received $90 million of new orders in the quarter, bringing the total backlog to $348 million, approximately 90% of which we will deliver in 2020. That backlog gives us excellent visibility for the rest of the year.
The rail components business continues to be weak and revenue dropped by $20 million from last year's first quarter. We have had to take additional actions at our facilities to respond to lower demand for new railcars and we will continue to build out our non-railcar product lines using our forging and foundry capabilities.
I will now turn to slide 14 to discuss our liquidity and balance sheet highlights. The strong free cash flow profile of our businesses has contributed to the $475 million of liquidity that we had at the end of the quarter, made up of $201 million of cash and an additional $274 million of committed revolver capacity. Free cash flow of $20 million was in line with our expectations heading into the year. It was below our five-quarter average primarily because we were working through a number of advanced payments that we received in the fourth quarter of 2019.
During the quarter we borrowed $100 million on our revolving credit facility as a precautionary measure, but we have not yet seen any material increases in our overdue accounts receivable or credit risks that concern us.
Turning to slide 15, one of the attractive investment characteristics about our Company is our low leverage, which will enable us to manage through challenging economic scenarios as well as pursue disciplined growth when the time is right. Since our spin-off in late 2018 we have completed two major construction products acquisitions primarily using cash from operations and we ended the quarter with approximately 0.5 net debt-to-EBITDA. We've also taken aggressive actions to conserve cash during this period of uncertainty and have adjusted our capital allocation outlook for 2020 which you see on slide 16.
First, we have delayed non-essential capex and now expect to invest in a range of $75 million to $85 million this year, down $20 million from our previous guidance. That range includes approximately $65 million of maintenance capex plus a select set of growth projects that still meet our return criteria in a more uncertain environment. The bulk of our growth capex will continue to be in utility structures and reserve acquisitions in our aggregates and specialty materials businesses. In addition to reducing our capex, we've also taken steps to reduce our SG&A spending in order to keep our total SG&A costs in line with revenue.
Finally, we've implemented a number of working capital initiatives to reduce our working capital requirements across receivables, inventory and payables. We will also be disciplined in our acquisition strategy. In addition to Cherry, we completed a $25 million complementary acquisition of a traffic structures business in Florida to expand into this adjacent product line. We are attracted to the infrastructure-related market drivers of the business as well as the manufacturing synergies with our other product lines within Energy Equipment. We expect to be able to expand this new product line into other geographies using our manufacturing expertise and footprint across North America.
Finishing up with return of capital to shareholders, we currently plan to maintain our dividend at roughly $10 million per year and we still have $34 million remaining on our share repurchase authorization. I will now turn the call back over to Antonio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Scott. In the first quarter our business experienced only minor disruption from COVID-19. But we do expect the resulting economic downturn to impact some of our product lines and we have already seen some indications of that. We continue to be encouraged by the momentum we have in many of our businesses. However, the very fluid and uncertain economic environment has caused us to suspend earnings guidance. We intend to share Arcosa's outlook with you today so you can understand what we're currently experiencing in each of the business lines.
Given the uncertainty on the depth and length of the slowdown in the economy, I will try to be as transparent as I can with the information available today. Turning to page 19, let's start with Construction Products. Construction performed very well in the first quarter. In most states construction is considered an essential service. As such, demand has held up well. In addition to the new Cherry acquisition and its recycled aggregates business have performed ahead of plan. We have seen some softness in the construction site support business since most of the customers are rental companies who have begun to cut back or delay capex in this environment. Still this product line only accounted for 12% of Group revenue on a pro forma basis, which includes Cherry.
While the Construction Products business performed well in the first quarter, we have been supplying projects that were already under way. As we move forward we expect weaker demand in the construction sector, especially in the residential market. As this business line operates with shorter lead times and does not have the benefit of backlog, it is much harder to forecast in this environment. Also, the second and third quarters are the busiest for this business line. So the effect of the slowdown is particularly challenging to predict. On a positive note, there is talk of a stimulus bill and additional potential increase in state infrastructure spending, which will benefit Arcosa in the medium and long-term.
Turning to slide 19, let's discuss Energy Equipment segment. We have much better visibility given its backlog, which stands at $505 million and gives us the confidence in our 2020 performance expectations. The wind tower and utility structural business units have combined backlog of $476 million, which represents over 75% of the revenues those businesses generated in 2019. While there are some outside factors unrelated to COVID-19 that are pressuring the wind tower business such as the expiration of the production tax credit, our backlog covers most of 2020 and the main potential impact would be some on field spots in our production schedule in the fourth quarter.
The market for the utility structures remains active and the growth drivers are long term in nature. This end market continues to show strong demand and limited supply and our 2020 growth outlook remains intact based on what we know today. Where we are seeing some softness at the Energy Equipment segment is in the storage tank product line, which contributed to $211 million of revenue in 2019.
Here we have more limited backlog based on the nature of the business. We do expect an economic downturn to have an impact since this business has some exposure to the new housing and oil and gas markets in both the US and Mexico. On the other hand, it's important to note that the large tank market, which has the most exposure to oil and gas dynamics, represents less than 5% of the Group revenue.
Please turn to slide 20, Transportation Products have some mix conditions. Our barge business is providing significant growth, but our components business is dealing with a very challenging market conditions. With respect to the components, as we have said in the past, pre-COVID, demand for new railcars is estimated by industry sources to decline by 30% in 2020 and the number of railcars in storage continues to increase. So expectations for the industry have gotten worse. We have planned on a significant slowdown so the incremental impact is marginally negative to our previous expectations. However, we continue to take actions to right-size our costs. At the same time we are working successfully on adding other non-rail products.
On the other hand, our barge business had strong order activity in the first quarter with $90 million in orders. Overall, market fundamentals remain positive with an aging fleet for both liquid and dry barges. The average age continues to increase and the significant decline in steel prices toward historic lows could encourage additional order activity.
While the recent sharp decline in oil prices is a point of concern that we are watching, our backlog of $348 million provides us with a good line of sight for this business. We are also continuing to see strong demand in our marine components business which serves both the new and replacement markets. On balance, our outlook for Transportation is for revenue to grow at least 15% for 2020 based on the confidence we have in our solid backlogs offsetting the decline in components.
Now let's discuss the assumptions embedded in the current outlook. Please turn to slide 21. First, please note that COVID-19 situation is extremely fluid. So this slide lays out some of the assumptions we have to help you understand how we're thinking about the next few months. Overall, we expect to continue to operate as an essential business. We do expect the country to emerge from lockdown, but at the same time most reports show the virus continues -- could continue to be a disruptive force until a vaccine is found. So we will remain vigilant and focused on following all established protocols for the foreseeable future.
Our biggest risk could be the production delays resulting from plant shutdowns, potentially either our own, our customers or our suppliers. Separately, we are working with each business unit leader to reduce costs in line with our revenue expectations. We plan to continuously evaluate each business in real time. If conditions should change, cost will be adjusted to reflect the market conditions we're seeing. Our corporate costs are already lean, but we are taking additional actions to reduce costs even further.
From my experience in leading businesses through times of great uncertainty, I have learned that it is critical to get ahead of the cost curve before the downturn materializes. Also, operating flexibility is key as the news and outlooks changes every day. We must be prepared to act quickly and I can confidently say we are. I'm also guiding principle we will apply during these uncertain time is to stay true to our values and do the right thing for our employees, our communities and all our stakeholders.
Finally, our strong balance sheet is a make or break factor in a challenging business environment and we are committing to keeping ours healthy. We plan to remain active on the M&A front in a disciplined manner on an opportunistic basis. Our low leverage and ample liquidity give me confidence that we will emerge a stronger, leaner Company.
Turning to slide 23, ESG continues to be a priority for us going forward. During this time, we have had the opportunity to develop new ways of supporting our local communities. At the same time, we remain committed to developing our baselines and setting goals for the Company. We plan to publish our first Sustainability Report for 2020.
Please turn to slide 24. While the current impact of COVID-19 may delay some initiatives and create some uncertainty, it has not changed our long-term plan, which is to grow in attractive markets, reduce the complexity and cyclicality of our business, improve our long-term returns on invested capital and integrate ESG into everything we do. We continue to advance on these initiatives every day while working toward making Arcosa a leaner, more efficient company. I will now open the call to questions.
Questions and Answers:
Operator
[Operator Instructions] And we'll take our first question from Brent Thielman with D.A. Davidson. Please go ahead.
Brent Thielman -- D.A. Davidson -- Analyst
Thank you. Congratulations on a great quarter.
Antonio Carrillo -- President and Chief Executive Officer
Thank you.
Brent Thielman -- D.A. Davidson -- Analyst
The margins in Transportation Products, really strong despite the fact that rail was sort of working against you and I assume that's going to continue going forward, but just given the inland barge backlog and the embedded pricing within that, do you think you can maintain these sort of margin level through this year?
Scott Beasley -- Chief Financial Officer
Hi, Brent. Thanks for the question. This is Scott. The answer is yes for the full year. There'll be some unevenness through the quarters as mix changes quarter-to-quarter, but the really strong margins in the first quarter largely from better pricing in the barge backlog, no start-up costs and then excellent operational execution, we would expect that to be relatively consistent for the full year. Q2 looks like, because of mix in barge, might be a little lower, but then it would pick back up in Q3 and Q4.
Brent Thielman -- D.A. Davidson -- Analyst
Okay. And then I guess my follow-up is on utility and wind, the book-to-bill a little slower this quarter but still pretty good backlog here. Are you seeing delays in bid processes or decisions to move business forward, does that -- because of COVID, does that ultimately move some things to 2Q, 3Q in terms of bid activities, just curious kind of what you're seeing there?
Antonio Carrillo -- President and Chief Executive Officer
Brent, this is Antonio. They are different businesses. So let me talk about each one individually. On wind towers, as I've said, I think we have a good backlog, it covers most of fourth quarter and we are seeing order inquiries from several of our customers and we expect to receive some orders before the end of the year. So I think it's slowed down a little bit because there is some disruption in the installation of wind towers with all this issue going around. It's a very busy year based on the expiration of the tax credit. There is a significant amount of movement in the fields of installing etc. But I do expect orders to come in. As we've said the margins of the orders in wind tower are lower than we had in the past. So it's important to remember that.
On the -- as I've said in the past, it's a project it's going to become and we are seeing that the project-based business where our customers will come in and say, I have projects for the first half of 2021, let's bid on those rather than a blanket order for five years like we used to have in the past. It's OK. That's how we operate in most of our business and we're not afraid of it. We are encouraged by it and we are going to be dealing with that.
Utility structures, it's a very different business and we continue to see very strong order activity. Inquiries continue to be strong. I would tell you both on the wind and on the utility structure, the biggest question we were getting during the quarter, especially at the end of March, beginning of April where the uncertainty was at the highest point, the biggest question we would get was not about delays, but are you going to continue to be able to deliver these products. That was the biggest question we were getting. If people were worried, we could not deliver. So that is, I think that tells you a little bit of the environment we're dealing with.
Brent Thielman -- D.A. Davidson -- Analyst
That's helpful. Thank you very much.
Operator
Next question comes from Bascome Majors with Susquehanna. Please go ahead.
Bascome Majors -- Susquehanna Financial Group -- Analyst
Yeah, thanks for taking my questions guys. I was hoping we could revisit the outlook for aggregates and maybe the Construction Products segment as a whole. You commented that it's a seasonally strong business in the summer, which is going to be disproportionately impacted by the shutdowns and it's not a backlog business, but is there any way to frame some of the stress test scenarios you've done. Just trying to think about the kind of worst-case scenarios in your minds that might be in play here as we look to kind of underwrite risk award in one of your largest EBITDA generators. Thank you.
Antonio Carrillo -- President and Chief Executive Officer
Sure. Thank you, Bascome. Let me give you a sense. The business has really three businesses inside, specialty materials, the aggregates and the shoring business. The shoring business is the one that where we've seen now more slowdown and the reason for that is that there are very different. The shoring business, we sell a lot to rental companies as I mentioned in my remarks and for them it's capex. And like every other company, like we are doing, everyone in these uncertain times is conserving cash. And we've seen some delays or no cancellations, really more delays of orders and right now what our customers are telling us is, we're delaying the orders for the third quarter or for the fourth quarter.
On the aggregates piece -- and that's what we're seeing. So the reason we -- the uncertainty around this business and I would tell you around the construction segment especially, when you ask our customers or industry experts, what do you expect, and some people expect a pickup in the third quarter. Some people expect a pickup in the fourth quarter. The reality is that I don't think anyone really knows how deep and how slow this is going to be and that was the reason we withdrew our guidance because we don't know, the reality is that we don't know. We are working today. We will continue to work on projects that we're already working before.
Even in the second quarter, we started the second quarter pretty strong. We're not seeing in the aggregates piece any delays yet, any signs of stress. We are seeing some of the big projects, especially in California and Washington that where construction activity did stop, there is a few states where construction activity did stop and those are the states where we felt a little pain and we're feeling a little pain, but worst case scenario is if the virus comes back and for whatever reason we go into lockdown and construction activity ceases to be an essential business, I mean that's a really extreme case, I would -- that's not what we have in our expectations.
What we have is that like every other slowdown, construction slows down together with the economy, we adjust our cost. We -- our main priority on the aggregates side is going to maintain pricing which is one of the characteristics of this business and just adjust our cost and move forward and look for opportunities. That's our mindset at the moment.
Bascome Majors -- Susquehanna Financial Group -- Analyst
So, is there any way to frame the degree of revenue downside that you guys are kind of working within your planning purposes?
Scott Beasley -- Chief Financial Officer
Yeah, I think Bascome, if you look at previous recessions and I think most people say we're headed into some sort of recession now, you've seen a big variability where something as small as 5% to 10% revenue decline to something like the '09, '10 that was a bigger revenue decline. So I think it depends on how long the slowdown lasts and how deep it goes, but I think looking at those previous periods you can kind of book into what that might look like.
Bascome Majors -- Susquehanna Financial Group -- Analyst
Yeah, thank you for answering me with that. And as we look to '21, I realize that's a really long way away right now, but I was just trying to think through your thought process on the backlog businesses which are clearly backstopped to do quite well today, but also have some cyclicality where that could change in the future. Just -- I don't know if you want to hit kind of your high level thoughts on where you think structural mid-term demand could go in wind towers, utility structures and barge.
Antonio Carrillo -- President and Chief Executive Officer
Yes, so let me start with those three, I think those three are the big ones with backlogs. Starting with wind towers, I think fundamentally I'm a big believer in renewable power. It will continue to be a -- one of the sources of energy that will continue to be in demand. I think as we move forward that's going to continue, it's a trend that will not stop.
As you go into the future, if you're planning ahead, when you look at the utilities that are giving guidance or talking about their results or their projects, a lot of them are talking about storage plans and things like that. So I think going forward, storage and renewables will be a story of a -- combined story that will continue to go together and we are optimistic in the long term. The industry historically has worked on tax credits and those are going away and -- but now even with natural gas is at $2 which now I know they are lower, the industry is competitive. I think the technology has evolved and it continues to evolve really fast. So I'm encouraged about it. It's something that we will have some uncertainty '21, probably '22, but the industry fundamentals are there for us in the long-term.
Utility structure is different. That business if for all everything that's happening, even for the renewable energy and for electric cars and for everything we're doing electronically, the [Indecipherable] hardening needs to happen and the investment in infrastructure, in transmission needs to get stronger and that's what we're seeing in the market. It's a long-term -- it's a long-term demand factor that we believe is going to stay here with us for several years.
The other piece is that -- that's why we have a relatively small market share there and we have opportunities to expand our product lines and that's what we are doing. Scott talked about the acquisition we did in the first quarter on highway signage and it's a lot of synergies with our product line, a lot -- same design, same engineering, very similar processes. So we want to continue to expand and we have opportunities to grow the market as this business has strong fundamentals.
And finally on barge, I mentioned in my remarks that both the liquid and dry cargo barges, more the dry cargo have aging fleets and those fleets have to be replaced. It's a replacement market. I don't see any driver right now that have encouraged me to that. The fleet is going to grow. That's not what we're assuming, but simply if you look at the replacement values, it gives you a sense that we have hopefully on less dynamics for financing or something like that, which is something that our customers look at change, there needs to be a replacement in both dry and liquid markets.
And at the same time, steel prices, which are on a very low point right now, I mean we're buying steel at half the price that we were buying a year ago, it could help us get some additional business, but also demand -- demand is going to be driven by agricultural prices and all this relationship with China, which is an important piece, but overall we're positive on the barge. Based on the age and steel prices we're positive on transmission. There is a little more uncertainty on wind, but we will have a wind business in 2021 and it will be profitable.
Bascome Majors -- Susquehanna Financial Group -- Analyst
Thank you, guys.
Operator
And our next question comes from Stefanos Christ with CJS Securities. Please go ahead, your line is open.
Stefanos Christ -- CJS Securities -- Analyst
Good morning and congrats on the quarter.
Antonio Carrillo -- President and Chief Executive Officer
Thank you.
Stefanos Christ -- CJS Securities -- Analyst
First, could you break out the growth in aggregates between organic and what was also contributed from Cherry?
Scott Beasley -- Chief Financial Officer
Sure, Stefanos. So on the legacy business, volumes were up, pricing was relatively flat. And then the only downside was the oil and gas exposure. So you put that altogether, roughly flat, almost all of the total growth was in the Cherry acquisition that operated very well during the quarter. The integration is going smoothly and it added a lot to our results in the first quarter.
Stefanos Christ -- CJS Securities -- Analyst
Perfect, thanks. And then, so you guys also had a lot of orders in barge, $90 million. Could you maybe give us some color on how that's progressing in the Q2?
Antonio Carrillo -- President and Chief Executive Officer
Scott, yes, I'll take that. So we have received orders in Q2, but very few. So we are -- right now we are going through -- basically what we're doing right now is going back to our customers with new steel pricing and to give you a sense, when steel pricing is at current level compared to a year ago, in our big barges it might be $75,000 to $100,000 in price reductions. So that's what we're doing right now as steel prices stabilize a little bit, that's what we're going back to our customers, but we have received a few orders, not much. We do receive orders in our components business because the barge components business continues to be relatively well, but barge, very few.
Stefanos Christ -- CJS Securities -- Analyst
Thank you so much and congrats again.
Antonio Carrillo -- President and Chief Executive Officer
Thank you.
Scott Beasley -- Chief Financial Officer
Thanks, Stefanos.
Operator
Our next question comes from Ian Zaffino with Oppenheimer. Please go ahead.
Ian Zaffino -- Oppenheimer -- Analyst
Hi, great, thank you. Very good news you're keeping the dividend and also kind of interesting that you spoke about M&A as well. What are you sort of thinking here on the M&A front, can you give some targets out there that are kind of on shaky financial terms where maybe [Indecipherable] a good acquisition. Is that sort of like what you're seeing or just any color on kind of environment and the stable targets you might have. Thanks.
Antonio Carrillo -- President and Chief Executive Officer
Yes. Ian, this is Antonio. The -- like everything else, I think over the last several weeks, there was a reset in the mindset of everyone and we had to be working and we have talked about having a relatively full pipeline and Scott mentioned the three areas, the aggregates, specialty materials and the expansion of our utilities and around that business.
And I think with the slowdown, first we have to make sure that we get some more clarity on how deep and how long this will be. And -- but we will know that, the reality is we're going to be navigating these uncertain seas and we just have to get comfortable with that. We have a good balance sheet. We're going to be disciplined. But we do believe that there is going to be opportunities for people who either have not such a strong balance sheet or their business are not performing well, they're not operating well or they run into some specific problems, and I do believe we are going to find opportunities. I think it's a time where a strong balance sheet is going to be probably the most important thing for any company to have them. We have a good one and we're going to be looking for opportunities. That doesn't mean that if we find something that we believe is reasonably priced, we will do it. We have to leave the door open because I think we have opportunities for the Company, for the future that we want to take advantage of.
Ian Zaffino -- Oppenheimer -- Analyst
Okay, thank you. And then also as far as the business being deemed essential, is that each individual business or just the Company, the greater Company itself?
Antonio Carrillo -- President and Chief Executive Officer
It's individual business. So when you look at the guidelines that the government provided, each one of the business is essential for different reasons. But all of them fall in the essential category. Also important is that the -- our business in Mexico have the same situation. So, we have continued to operate even though there's a disparity between both countries on what's essential. We continue to operate on both sides of the border, have been essential up to this point.
Ian Zaffino -- Oppenheimer -- Analyst
Okay, great, thank you very much.
Operator
And we will take our next question from Blake Hirschman with Stephens. Please go ahead.
Blake Hirschman -- Stephens -- Analyst
Yeah, good morning guys.
Antonio Carrillo -- President and Chief Executive Officer
Good morning.
Scott Beasley -- Chief Financial Officer
Hi, Blake.
Blake Hirschman -- Stephens -- Analyst
I was curious as to whether you guys might kind of talk about what April trends have looked like just across the segments, top line or just the margins.
Scott Beasley -- Chief Financial Officer
Yeah, I'll give you some overall color and stay away from specific numbers, but in Energy & Transportation, April has gone according to plan. We've talked about our outlook being intact there. And then on Construction Products where we don't have a backlog, volumes have been strong. The markets that we operate in have held up well in April largely from projects that were already started when the pandemic picked upstream in March. So that's one of the questions of -- it should be a strong April, we've seen a strong April, but there is uncertainty around the rest of Q2 and Q3 as to the degree that those projects are replaced by new projects.
Blake Hirschman -- Stephens -- Analyst
Got it. And if you look at Construction Products piece, I guess, either in past cycles or kind of as you would expect for this one, what kind of decrementals would you expect to see there, I mean, assuming that the top line jobs 5% to 10% or maybe even closer to like a 20%, just kind of some rough template for how we should think about the decrementals there would be helpful.
Scott Beasley -- Chief Financial Officer
Yeah, I'll give you some color around margin declines and kind of what we see in the businesses. In energy and barge, those are more variable cost structure, so we should be able to hold margins relatively consistent by right-sizing the footprint. You do have some decline but not particularly severe. Rail components and construction, those are our highest incremental and decremental margin businesses. So we'd expect more margin increases on the upside, which we've seen in good cycles, but more margin pressure on the downside, I mean, declines because of the higher fixed cost structure. So if you're talking about orders of magnitude drop that you described, there will be margin pressure on the downside.
Antonio Carrillo -- President and Chief Executive Officer
Blake, this is Antonio. Just to give you a little more color on the construction site, April. As I mentioned, the piece that's missing here is the shoring business, the construction site support, that's where we've seen some pushback in backlog to the third and fourth quarter. It's not huge. It's a business that, as I said, it's about 12% of our revenue in construction. But it's a good business, a good margin business. We're excited about it. We like it, but it's where we've seen a little more push back. And a couple of states, Washington and California where we have operations have slowed down construction. So that's what we've seen some slowdown also.
Blake Hirschman -- Stephens -- Analyst
Got it. Makes sense. And then just lastly, with the COVID and tax and just the broader effects that that's had, I mean do you think there's any kind of momentum for extending the wind tax credit beyond the end of this year?
Scott Beasley -- Chief Financial Officer
This is Scott. We -- from our understanding of discussions in Washington, that was part of some discussions around stimulus bills. It was not included in the final bill, but those conversations are ongoing and we'll monitor that closely. Even without the production tax credit, as Antonio said, we think the wind business is competitive economically and has a lot of positive drivers both from the corporate ESG and other state mandates. So a PTC extension would be a nice benefit, but not required for that business to be solid.
Blake Hirschman -- Stephens -- Analyst
All right, thanks a lot. I'll hop back in queue.
Operator
And it appears that we have no further questions at this time. I will now turn the program back to Gail Peck.
Gail M. Peck -- SVP, Finance & Treasurer
Thank you, Nicky. Thank you everyone for joining us today. We look forward to speaking with you again next quarter. Bye.
Operator
[Operator Closing Remarks]
Duration: 44 minutes
Call participants:
Gail M. Peck -- SVP, Finance & Treasurer
Antonio Carrillo -- President and Chief Executive Officer
Scott Beasley -- Chief Financial Officer
Brent Thielman -- D.A. Davidson -- Analyst
Bascome Majors -- Susquehanna Financial Group -- Analyst
Stefanos Christ -- CJS Securities -- Analyst
Ian Zaffino -- Oppenheimer -- Analyst
Blake Hirschman -- Stephens -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, Inc (NYSE: ACA) Q1 2020 Earnings Call Apr 29, 2020, 8:30 a.m. Davidson -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Stefanos Christ -- CJS Securities -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Blake Hirschman -- Stephens -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. Turning to slide 15, one of the attractive investment characteristics about our Company is our low leverage, which will enable us to manage through challenging economic scenarios as well as pursue disciplined growth when the time is right. | Davidson -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Stefanos Christ -- CJS Securities -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Blake Hirschman -- Stephens -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. Arcosa, Inc (NYSE: ACA) Q1 2020 Earnings Call Apr 29, 2020, 8:30 a.m. Adjusting for a bad debt recovery of $3 million last year within the Energy Equipment, all business lines contributed to the profit growth with Construction Products being the largest contributor to this quarter's revenue and EBITDA growth. | Davidson -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Stefanos Christ -- CJS Securities -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Blake Hirschman -- Stephens -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. Arcosa, Inc (NYSE: ACA) Q1 2020 Earnings Call Apr 29, 2020, 8:30 a.m. I will provide you with the current conditions within our markets, the highlights of our first quarter performance and later discuss our business line expectations, while Scott will update you on the first quarter financials. | Arcosa, Inc (NYSE: ACA) Q1 2020 Earnings Call Apr 29, 2020, 8:30 a.m. Davidson -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Stefanos Christ -- CJS Securities -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Blake Hirschman -- Stephens -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. First, Arcosa's business continues to operate well within the COVID-19 environment. |
35433.0 | 2020-04-29 00:00:00 UTC | Arcosa, Inc (ACA) Q1 2020 Earnings Call Transcript | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-q1-2020-earnings-call-transcript-2020-04-29 | nan | nan | Image source: The Motley Fool.
Arcosa, Inc (NYSE: ACA)
Q1 2020 Earnings Call
Apr 29, 2020, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen, and welcome to the Arcosa Incorporated First Quarter 2020 Earnings Conference Call. My name is Nicky and I'll be your conference call coordinator today. As a reminder, today's call is being recorded.
Now I would like to turn the call over to your host, Gail Peck. Ms. Peck, you may begin.
Gail M. Peck -- SVP, Finance & Treasurer
Good morning, everyone. Thank you for joining our first quarter 2020earnings call With me today are Antonio Carrillo, President and CEO; and Scott Beasley, CFO. A question-and-answer session will follow their prepared remarks today. A copy of yesterday's press release and a slide presentation for this morning's call are posted at our Investor Relations website www.ir.arcosa.com. A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website under the News and Events tab.
Today's comments and presentation slides contain financial measures that have not been prepared in accordance with generally accepted accounting principles. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation. Let me also remind you that today's conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the Company's SEC filings for more information on these risks and uncertainties, including our Form 10-K, the earnings press release that we filed yesterday and our Form 10-Q for the first quarter expected to be filed later today.
I would now like to turn the call over to Antonio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Gail. Good morning and thank you for joining today's call to discuss Arcosa's first quarter results and business outlook. I will provide you with the current conditions within our markets, the highlights of our first quarter performance and later discuss our business line expectations, while Scott will update you on the first quarter financials.
Please move to slide 4. There are several key messages I would like you to take away from today's call. First, Arcosa's business continues to operate well within the COVID-19 environment. We have been designated an essential business and our facilities are operational. Second, we have implemented business continuity plans and have adopted protocols to protect the health and safety of our employees, and the communities in which we operate. This is our priority and I would like to recognize all of our teams for how quickly and effectively these protocols were put in place.
Third, Arcosa's strong financial quarter performance shows the earnings power we have and our strong balance sheet provides us with flexibility in this uncertain time and the capacity for significant growth opportunities for the future. And fourth, while we expect lower demand for some of our product lines, in some others we continue to see strong fundamentals and have substantial backlog that provide good visibility.
On page 5 you can find the agenda for today's call. Let's start by discussing our priorities during the COVID-19 health crisis from slide 7. First and foremost, our top priority, the health and safety of our 6,300 employees and the communities in which we operate. To that end, we immediately put in place safeguards at our facilities, consistent with CDC guidelines. We also implemented work-from-home protocols for our office staff and are making plans for how we return to our offices once it's authorized and safe to do so. As an essential supplier to the nation's infrastructure sectors, we have continued operating the plants to meet our customers' needs in every business, and as you can see from our first quarter results we have not missed a beat.
Our strong liquidity position and financial flexibility are now even greater competitive advantages than they were only just a few months ago. I know from experience having strong balance sheet is key to successfully navigating through an economic downturn. Scott will review this in more detail, but from a high level we have about $200 million of cash, plus $274 million in revolver availability.
Net debt is roughly half of our annual EBITDA and we expect strong free cash flow. Additionally, we have taken actions to reduce operating and corporate costs and have postponed non-essential capital expenditures to ensure we are prepared for a potential extended slowdown. Arcosa's strong balance sheet provides us with the resources to make strategic acquisitions on a disciplined basis at attractive prices should they become available.
Now let's turn to slide 9 for a look at the Company's wide results. For the first quarter, the Company performed extremely well with revenues of $488 million, up 19% year-over-year. All three business lines contributed to this growth. Adjusted EBITDA of $76 million was up 29% reflecting the considerable operating leverage we continue to achieve. Adjusting for a bad debt recovery of $3 million last year within the Energy Equipment, all business lines contributed to the profit growth with Construction Products being the largest contributor to this quarter's revenue and EBITDA growth.
This segment benefited from the recent acquisition of Cherry which is performing ahead of plan. Importantly, both our utility structures and large businesses showed healthy order intake in the first quarter. Scott will give you more details on the individual business lines and then I will return to provide you additional market color and discuss our outlook. Scott?
Scott Beasley -- Chief Financial Officer
Thank you, Antonio, and good morning everyone. I'll start on slide 10 of the presentation and walk through our results from the quarter and then discuss our financial strength and capital allocation plans in more depth. Starting with Construction Products, revenue grew 41% to $149 million and adjusted EBITDA increased 49% to $32.1 million. EBITDA margins increased to 21.5%, more than 100 basis points better than last year's first quarter. The legacy businesses performed well during the quarter and the Cherry acquisition exceeded our expectations.
Volumes in our legacy business were higher for both our natural aggregates and specialty lightweight aggregates businesses as Dallas-Fort Worth and Texas end markets remained robust throughout the quarter. Additionally, the Cherry acquisition exceeded our expectations. The Houston construction market remained solid and the team did an excellent job executing during the integration. The only weak spot in this segment was continued softness in our West Texas and Oklahoma aggregate plants serving oil and gas infrastructure, but that exposure is a small part of our revenue in this segment and the segment still posted strong revenue and margin improvements even with the exposure.
Moving to Energy Equipment on slide 11, revenue grew 7% to $223 million and adjusted EBITDA was roughly flat once we adjust for a one-time bad debt recovery in 2019. Higher volumes in both wind towers and utility structures drove our increased revenue, which was even more impressive given that lower pass-through steel prices were a pricing headwind for utility structures in the quarter. The wind towers team continued to execute well and delivered a higher unit count than the first quarter of 2019, including the successful delivery of a run of a larger tower type.
Pricing, as expected, was lower in the quarter than last year's first quarter, but in line with the expectations that we laid out heading into the year. Utility structures continues to be a very strong performing product line. We delivered higher volumes with improved margins. Our storage tank business declined year-over-year on lower shipments of residential and commercial propane tanks.
Adjusted EBITDA in the first quarter was $33.6 million, which was in line with our expectations. 2019 EBITDA was helped by $2.9 million of one-time bad debt recovery. In 2020, we had a $1.3 million loss on impaired assets as we transition to plan from supporting railcar component work to utility structures. Overall, the Energy Equipment segment continued its progress on lean improvements and recorded an excellent financial and operational quarter.
Turning to slide 13, Transportation Products had 20% growth in revenues and 55% growth in adjusted EBITDA. Barge revenues and profitability grew significantly versus the first quarter of 2019. In the barge business, margins expanded significantly versus last year's first quarter. We had improved pricing in the backlog and we did not have the start-up costs from reopening our Louisiana plant that we incurred in 2019.
The operating team did an outstanding job hitting our production schedule. In addition to strong execution in the quarter, order activity continued to be healthy. We received $90 million of new orders in the quarter, bringing the total backlog to $348 million, approximately 90% of which we will deliver in 2020. That backlog gives us excellent visibility for the rest of the year.
The rail components business continues to be weak and revenue dropped by $20 million from last year's first quarter. We have had to take additional actions at our facilities to respond to lower demand for new railcars and we will continue to build out our non-railcar product lines using our forging and foundry capabilities.
I will now turn to slide 14 to discuss our liquidity and balance sheet highlights. The strong free cash flow profile of our businesses has contributed to the $475 million of liquidity that we had at the end of the quarter, made up of $201 million of cash and an additional $274 million of committed revolver capacity. Free cash flow of $20 million was in line with our expectations heading into the year. It was below our five-quarter average primarily because we were working through a number of advanced payments that we received in the fourth quarter of 2019.
During the quarter we borrowed $100 million on our revolving credit facility as a precautionary measure, but we have not yet seen any material increases in our overdue accounts receivable or credit risks that concern us.
Turning to slide 15, one of the attractive investment characteristics about our Company is our low leverage, which will enable us to manage through challenging economic scenarios as well as pursue disciplined growth when the time is right. Since our spin-off in late 2018 we have completed two major construction products acquisitions primarily using cash from operations and we ended the quarter with approximately 0.5 net debt-to-EBITDA. We've also taken aggressive actions to conserve cash during this period of uncertainty and have adjusted our capital allocation outlook for 2020 which you see on slide 16.
First, we have delayed non-essential capex and now expect to invest in a range of $75 million to $85 million this year, down $20 million from our previous guidance. That range includes approximately $65 million of maintenance capex plus a select set of growth projects that still meet our return criteria in a more uncertain environment. The bulk of our growth capex will continue to be in utility structures and reserve acquisitions in our aggregates and specialty materials businesses. In addition to reducing our capex, we've also taken steps to reduce our SG&A spending in order to keep our total SG&A costs in line with revenue.
Finally, we've implemented a number of working capital initiatives to reduce our working capital requirements across receivables, inventory and payables. We will also be disciplined in our acquisition strategy. In addition to Cherry, we completed a $25 million complementary acquisition of a traffic structures business in Florida to expand into this adjacent product line. We are attracted to the infrastructure-related market drivers of the business as well as the manufacturing synergies with our other product lines within Energy Equipment. We expect to be able to expand this new product line into other geographies using our manufacturing expertise and footprint across North America.
Finishing up with return of capital to shareholders, we currently plan to maintain our dividend at roughly $10 million per year and we still have $34 million remaining on our share repurchase authorization. I will now turn the call back over to Antonio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Scott. In the first quarter our business experienced only minor disruption from COVID-19. But we do expect the resulting economic downturn to impact some of our product lines and we have already seen some indications of that. We continue to be encouraged by the momentum we have in many of our businesses. However, the very fluid and uncertain economic environment has caused us to suspend earnings guidance. We intend to share Arcosa's outlook with you today so you can understand what we're currently experiencing in each of the business lines.
Given the uncertainty on the depth and length of the slowdown in the economy, I will try to be as transparent as I can with the information available today. Turning to page 19, let's start with Construction Products. Construction performed very well in the first quarter. In most states construction is considered an essential service. As such, demand has held up well. In addition to the new Cherry acquisition and its recycled aggregates business have performed ahead of plan. We have seen some softness in the construction site support business since most of the customers are rental companies who have begun to cut back or delay capex in this environment. Still this product line only accounted for 12% of Group revenue on a pro forma basis, which includes Cherry.
While the Construction Products business performed well in the first quarter, we have been supplying projects that were already under way. As we move forward we expect weaker demand in the construction sector, especially in the residential market. As this business line operates with shorter lead times and does not have the benefit of backlog, it is much harder to forecast in this environment. Also, the second and third quarters are the busiest for this business line. So the effect of the slowdown is particularly challenging to predict. On a positive note, there is talk of a stimulus bill and additional potential increase in state infrastructure spending, which will benefit Arcosa in the medium and long-term.
Turning to slide 19, let's discuss Energy Equipment segment. We have much better visibility given its backlog, which stands at $505 million and gives us the confidence in our 2020 performance expectations. The wind tower and utility structural business units have combined backlog of $476 million, which represents over 75% of the revenues those businesses generated in 2019. While there are some outside factors unrelated to COVID-19 that are pressuring the wind tower business such as the expiration of the production tax credit, our backlog covers most of 2020 and the main potential impact would be some on field spots in our production schedule in the fourth quarter.
The market for the utility structures remains active and the growth drivers are long term in nature. This end market continues to show strong demand and limited supply and our 2020 growth outlook remains intact based on what we know today. Where we are seeing some softness at the Energy Equipment segment is in the storage tank product line, which contributed to $211 million of revenue in 2019.
Here we have more limited backlog based on the nature of the business. We do expect an economic downturn to have an impact since this business has some exposure to the new housing and oil and gas markets in both the US and Mexico. On the other hand, it's important to note that the large tank market, which has the most exposure to oil and gas dynamics, represents less than 5% of the Group revenue.
Please turn to slide 20, Transportation Products have some mix conditions. Our barge business is providing significant growth, but our components business is dealing with a very challenging market conditions. With respect to the components, as we have said in the past, pre-COVID, demand for new railcars is estimated by industry sources to decline by 30% in 2020 and the number of railcars in storage continues to increase. So expectations for the industry have gotten worse. We have planned on a significant slowdown so the incremental impact is marginally negative to our previous expectations. However, we continue to take actions to right-size our costs. At the same time we are working successfully on adding other non-rail products.
On the other hand, our barge business had strong order activity in the first quarter with $90 million in orders. Overall, market fundamentals remain positive with an aging fleet for both liquid and dry barges. The average age continues to increase and the significant decline in steel prices toward historic lows could encourage additional order activity.
While the recent sharp decline in oil prices is a point of concern that we are watching, our backlog of $348 million provides us with a good line of sight for this business. We are also continuing to see strong demand in our marine components business which serves both the new and replacement markets. On balance, our outlook for Transportation is for revenue to grow at least 15% for 2020 based on the confidence we have in our solid backlogs offsetting the decline in components.
Now let's discuss the assumptions embedded in the current outlook. Please turn to slide 21. First, please note that COVID-19 situation is extremely fluid. So this slide lays out some of the assumptions we have to help you understand how we're thinking about the next few months. Overall, we expect to continue to operate as an essential business. We do expect the country to emerge from lockdown, but at the same time most reports show the virus continues -- could continue to be a disruptive force until a vaccine is found. So we will remain vigilant and focused on following all established protocols for the foreseeable future.
Our biggest risk could be the production delays resulting from plant shutdowns, potentially either our own, our customers or our suppliers. Separately, we are working with each business unit leader to reduce costs in line with our revenue expectations. We plan to continuously evaluate each business in real time. If conditions should change, cost will be adjusted to reflect the market conditions we're seeing. Our corporate costs are already lean, but we are taking additional actions to reduce costs even further.
From my experience in leading businesses through times of great uncertainty, I have learned that it is critical to get ahead of the cost curve before the downturn materializes. Also, operating flexibility is key as the news and outlooks changes every day. We must be prepared to act quickly and I can confidently say we are. I'm also guiding principle we will apply during these uncertain time is to stay true to our values and do the right thing for our employees, our communities and all our stakeholders.
Finally, our strong balance sheet is a make or break factor in a challenging business environment and we are committing to keeping ours healthy. We plan to remain active on the M&A front in a disciplined manner on an opportunistic basis. Our low leverage and ample liquidity give me confidence that we will emerge a stronger, leaner Company.
Turning to slide 23, ESG continues to be a priority for us going forward. During this time, we have had the opportunity to develop new ways of supporting our local communities. At the same time, we remain committed to developing our baselines and setting goals for the Company. We plan to publish our first Sustainability Report for 2020.
Please turn to slide 24. While the current impact of COVID-19 may delay some initiatives and create some uncertainty, it has not changed our long-term plan, which is to grow in attractive markets, reduce the complexity and cyclicality of our business, improve our long-term returns on invested capital and integrate ESG into everything we do. We continue to advance on these initiatives every day while working toward making Arcosa a leaner, more efficient company. I will now open the call to questions.
Questions and Answers:
Operator
[Operator Instructions] And we'll take our first question from Brent Thielman with D.A. Davidson. Please go ahead.
Brent Thielman -- D.A. Davidson -- Analyst
Thank you. Congratulations on a great quarter.
Antonio Carrillo -- President and Chief Executive Officer
Thank you.
Brent Thielman -- D.A. Davidson -- Analyst
The margins in Transportation Products, really strong despite the fact that rail was sort of working against you and I assume that's going to continue going forward, but just given the inland barge backlog and the embedded pricing within that, do you think you can maintain these sort of margin level through this year?
Scott Beasley -- Chief Financial Officer
Hi, Brent. Thanks for the question. This is Scott. The answer is yes for the full year. There'll be some unevenness through the quarters as mix changes quarter-to-quarter, but the really strong margins in the first quarter largely from better pricing in the barge backlog, no start-up costs and then excellent operational execution, we would expect that to be relatively consistent for the full year. Q2 looks like, because of mix in barge, might be a little lower, but then it would pick back up in Q3 and Q4.
Brent Thielman -- D.A. Davidson -- Analyst
Okay. And then I guess my follow-up is on utility and wind, the book-to-bill a little slower this quarter but still pretty good backlog here. Are you seeing delays in bid processes or decisions to move business forward, does that -- because of COVID, does that ultimately move some things to 2Q, 3Q in terms of bid activities, just curious kind of what you're seeing there?
Antonio Carrillo -- President and Chief Executive Officer
Brent, this is Antonio. They are different businesses. So let me talk about each one individually. On wind towers, as I've said, I think we have a good backlog, it covers most of fourth quarter and we are seeing order inquiries from several of our customers and we expect to receive some orders before the end of the year. So I think it's slowed down a little bit because there is some disruption in the installation of wind towers with all this issue going around. It's a very busy year based on the expiration of the tax credit. There is a significant amount of movement in the fields of installing etc. But I do expect orders to come in. As we've said the margins of the orders in wind tower are lower than we had in the past. So it's important to remember that.
On the -- as I've said in the past, it's a project it's going to become and we are seeing that the project-based business where our customers will come in and say, I have projects for the first half of 2021, let's bid on those rather than a blanket order for five years like we used to have in the past. It's OK. That's how we operate in most of our business and we're not afraid of it. We are encouraged by it and we are going to be dealing with that.
Utility structures, it's a very different business and we continue to see very strong order activity. Inquiries continue to be strong. I would tell you both on the wind and on the utility structure, the biggest question we were getting during the quarter, especially at the end of March, beginning of April where the uncertainty was at the highest point, the biggest question we would get was not about delays, but are you going to continue to be able to deliver these products. That was the biggest question we were getting. If people were worried, we could not deliver. So that is, I think that tells you a little bit of the environment we're dealing with.
Brent Thielman -- D.A. Davidson -- Analyst
That's helpful. Thank you very much.
Operator
Next question comes from Bascome Majors with Susquehanna. Please go ahead.
Bascome Majors -- Susquehanna Financial Group -- Analyst
Yeah, thanks for taking my questions guys. I was hoping we could revisit the outlook for aggregates and maybe the Construction Products segment as a whole. You commented that it's a seasonally strong business in the summer, which is going to be disproportionately impacted by the shutdowns and it's not a backlog business, but is there any way to frame some of the stress test scenarios you've done. Just trying to think about the kind of worst-case scenarios in your minds that might be in play here as we look to kind of underwrite risk award in one of your largest EBITDA generators. Thank you.
Antonio Carrillo -- President and Chief Executive Officer
Sure. Thank you, Bascome. Let me give you a sense. The business has really three businesses inside, specialty materials, the aggregates and the shoring business. The shoring business is the one that where we've seen now more slowdown and the reason for that is that there are very different. The shoring business, we sell a lot to rental companies as I mentioned in my remarks and for them it's capex. And like every other company, like we are doing, everyone in these uncertain times is conserving cash. And we've seen some delays or no cancellations, really more delays of orders and right now what our customers are telling us is, we're delaying the orders for the third quarter or for the fourth quarter.
On the aggregates piece -- and that's what we're seeing. So the reason we -- the uncertainty around this business and I would tell you around the construction segment especially, when you ask our customers or industry experts, what do you expect, and some people expect a pickup in the third quarter. Some people expect a pickup in the fourth quarter. The reality is that I don't think anyone really knows how deep and how slow this is going to be and that was the reason we withdrew our guidance because we don't know, the reality is that we don't know. We are working today. We will continue to work on projects that we're already working before.
Even in the second quarter, we started the second quarter pretty strong. We're not seeing in the aggregates piece any delays yet, any signs of stress. We are seeing some of the big projects, especially in California and Washington that where construction activity did stop, there is a few states where construction activity did stop and those are the states where we felt a little pain and we're feeling a little pain, but worst case scenario is if the virus comes back and for whatever reason we go into lockdown and construction activity ceases to be an essential business, I mean that's a really extreme case, I would -- that's not what we have in our expectations.
What we have is that like every other slowdown, construction slows down together with the economy, we adjust our cost. We -- our main priority on the aggregates side is going to maintain pricing which is one of the characteristics of this business and just adjust our cost and move forward and look for opportunities. That's our mindset at the moment.
Bascome Majors -- Susquehanna Financial Group -- Analyst
So, is there any way to frame the degree of revenue downside that you guys are kind of working within your planning purposes?
Scott Beasley -- Chief Financial Officer
Yeah, I think Bascome, if you look at previous recessions and I think most people say we're headed into some sort of recession now, you've seen a big variability where something as small as 5% to 10% revenue decline to something like the '09, '10 that was a bigger revenue decline. So I think it depends on how long the slowdown lasts and how deep it goes, but I think looking at those previous periods you can kind of book into what that might look like.
Bascome Majors -- Susquehanna Financial Group -- Analyst
Yeah, thank you for answering me with that. And as we look to '21, I realize that's a really long way away right now, but I was just trying to think through your thought process on the backlog businesses which are clearly backstopped to do quite well today, but also have some cyclicality where that could change in the future. Just -- I don't know if you want to hit kind of your high level thoughts on where you think structural mid-term demand could go in wind towers, utility structures and barge.
Antonio Carrillo -- President and Chief Executive Officer
Yes, so let me start with those three, I think those three are the big ones with backlogs. Starting with wind towers, I think fundamentally I'm a big believer in renewable power. It will continue to be a -- one of the sources of energy that will continue to be in demand. I think as we move forward that's going to continue, it's a trend that will not stop.
As you go into the future, if you're planning ahead, when you look at the utilities that are giving guidance or talking about their results or their projects, a lot of them are talking about storage plans and things like that. So I think going forward, storage and renewables will be a story of a -- combined story that will continue to go together and we are optimistic in the long term. The industry historically has worked on tax credits and those are going away and -- but now even with natural gas is at $2 which now I know they are lower, the industry is competitive. I think the technology has evolved and it continues to evolve really fast. So I'm encouraged about it. It's something that we will have some uncertainty '21, probably '22, but the industry fundamentals are there for us in the long-term.
Utility structure is different. That business if for all everything that's happening, even for the renewable energy and for electric cars and for everything we're doing electronically, the [Indecipherable] hardening needs to happen and the investment in infrastructure, in transmission needs to get stronger and that's what we're seeing in the market. It's a long-term -- it's a long-term demand factor that we believe is going to stay here with us for several years.
The other piece is that -- that's why we have a relatively small market share there and we have opportunities to expand our product lines and that's what we are doing. Scott talked about the acquisition we did in the first quarter on highway signage and it's a lot of synergies with our product line, a lot -- same design, same engineering, very similar processes. So we want to continue to expand and we have opportunities to grow the market as this business has strong fundamentals.
And finally on barge, I mentioned in my remarks that both the liquid and dry cargo barges, more the dry cargo have aging fleets and those fleets have to be replaced. It's a replacement market. I don't see any driver right now that have encouraged me to that. The fleet is going to grow. That's not what we're assuming, but simply if you look at the replacement values, it gives you a sense that we have hopefully on less dynamics for financing or something like that, which is something that our customers look at change, there needs to be a replacement in both dry and liquid markets.
And at the same time, steel prices, which are on a very low point right now, I mean we're buying steel at half the price that we were buying a year ago, it could help us get some additional business, but also demand -- demand is going to be driven by agricultural prices and all this relationship with China, which is an important piece, but overall we're positive on the barge. Based on the age and steel prices we're positive on transmission. There is a little more uncertainty on wind, but we will have a wind business in 2021 and it will be profitable.
Bascome Majors -- Susquehanna Financial Group -- Analyst
Thank you, guys.
Operator
And our next question comes from Stefanos Christ with CJS Securities. Please go ahead, your line is open.
Stefanos Christ -- CJS Securities -- Analyst
Good morning and congrats on the quarter.
Antonio Carrillo -- President and Chief Executive Officer
Thank you.
Stefanos Christ -- CJS Securities -- Analyst
First, could you break out the growth in aggregates between organic and what was also contributed from Cherry?
Scott Beasley -- Chief Financial Officer
Sure, Stefanos. So on the legacy business, volumes were up, pricing was relatively flat. And then the only downside was the oil and gas exposure. So you put that altogether, roughly flat, almost all of the total growth was in the Cherry acquisition that operated very well during the quarter. The integration is going smoothly and it added a lot to our results in the first quarter.
Stefanos Christ -- CJS Securities -- Analyst
Perfect, thanks. And then, so you guys also had a lot of orders in barge, $90 million. Could you maybe give us some color on how that's progressing in the Q2?
Antonio Carrillo -- President and Chief Executive Officer
Scott, yes, I'll take that. So we have received orders in Q2, but very few. So we are -- right now we are going through -- basically what we're doing right now is going back to our customers with new steel pricing and to give you a sense, when steel pricing is at current level compared to a year ago, in our big barges it might be $75,000 to $100,000 in price reductions. So that's what we're doing right now as steel prices stabilize a little bit, that's what we're going back to our customers, but we have received a few orders, not much. We do receive orders in our components business because the barge components business continues to be relatively well, but barge, very few.
Stefanos Christ -- CJS Securities -- Analyst
Thank you so much and congrats again.
Antonio Carrillo -- President and Chief Executive Officer
Thank you.
Scott Beasley -- Chief Financial Officer
Thanks, Stefanos.
Operator
Our next question comes from Ian Zaffino with Oppenheimer. Please go ahead.
Ian Zaffino -- Oppenheimer -- Analyst
Hi, great, thank you. Very good news you're keeping the dividend and also kind of interesting that you spoke about M&A as well. What are you sort of thinking here on the M&A front, can you give some targets out there that are kind of on shaky financial terms where maybe [Indecipherable] a good acquisition. Is that sort of like what you're seeing or just any color on kind of environment and the stable targets you might have. Thanks.
Antonio Carrillo -- President and Chief Executive Officer
Yes. Ian, this is Antonio. The -- like everything else, I think over the last several weeks, there was a reset in the mindset of everyone and we had to be working and we have talked about having a relatively full pipeline and Scott mentioned the three areas, the aggregates, specialty materials and the expansion of our utilities and around that business.
And I think with the slowdown, first we have to make sure that we get some more clarity on how deep and how long this will be. And -- but we will know that, the reality is we're going to be navigating these uncertain seas and we just have to get comfortable with that. We have a good balance sheet. We're going to be disciplined. But we do believe that there is going to be opportunities for people who either have not such a strong balance sheet or their business are not performing well, they're not operating well or they run into some specific problems, and I do believe we are going to find opportunities. I think it's a time where a strong balance sheet is going to be probably the most important thing for any company to have them. We have a good one and we're going to be looking for opportunities. That doesn't mean that if we find something that we believe is reasonably priced, we will do it. We have to leave the door open because I think we have opportunities for the Company, for the future that we want to take advantage of.
Ian Zaffino -- Oppenheimer -- Analyst
Okay, thank you. And then also as far as the business being deemed essential, is that each individual business or just the Company, the greater Company itself?
Antonio Carrillo -- President and Chief Executive Officer
It's individual business. So when you look at the guidelines that the government provided, each one of the business is essential for different reasons. But all of them fall in the essential category. Also important is that the -- our business in Mexico have the same situation. So, we have continued to operate even though there's a disparity between both countries on what's essential. We continue to operate on both sides of the border, have been essential up to this point.
Ian Zaffino -- Oppenheimer -- Analyst
Okay, great, thank you very much.
Operator
And we will take our next question from Blake Hirschman with Stephens. Please go ahead.
Blake Hirschman -- Stephens -- Analyst
Yeah, good morning guys.
Antonio Carrillo -- President and Chief Executive Officer
Good morning.
Scott Beasley -- Chief Financial Officer
Hi, Blake.
Blake Hirschman -- Stephens -- Analyst
I was curious as to whether you guys might kind of talk about what April trends have looked like just across the segments, top line or just the margins.
Scott Beasley -- Chief Financial Officer
Yeah, I'll give you some overall color and stay away from specific numbers, but in Energy & Transportation, April has gone according to plan. We've talked about our outlook being intact there. And then on Construction Products where we don't have a backlog, volumes have been strong. The markets that we operate in have held up well in April largely from projects that were already started when the pandemic picked upstream in March. So that's one of the questions of -- it should be a strong April, we've seen a strong April, but there is uncertainty around the rest of Q2 and Q3 as to the degree that those projects are replaced by new projects.
Blake Hirschman -- Stephens -- Analyst
Got it. And if you look at Construction Products piece, I guess, either in past cycles or kind of as you would expect for this one, what kind of decrementals would you expect to see there, I mean, assuming that the top line jobs 5% to 10% or maybe even closer to like a 20%, just kind of some rough template for how we should think about the decrementals there would be helpful.
Scott Beasley -- Chief Financial Officer
Yeah, I'll give you some color around margin declines and kind of what we see in the businesses. In energy and barge, those are more variable cost structure, so we should be able to hold margins relatively consistent by right-sizing the footprint. You do have some decline but not particularly severe. Rail components and construction, those are our highest incremental and decremental margin businesses. So we'd expect more margin increases on the upside, which we've seen in good cycles, but more margin pressure on the downside, I mean, declines because of the higher fixed cost structure. So if you're talking about orders of magnitude drop that you described, there will be margin pressure on the downside.
Antonio Carrillo -- President and Chief Executive Officer
Blake, this is Antonio. Just to give you a little more color on the construction site, April. As I mentioned, the piece that's missing here is the shoring business, the construction site support, that's where we've seen some pushback in backlog to the third and fourth quarter. It's not huge. It's a business that, as I said, it's about 12% of our revenue in construction. But it's a good business, a good margin business. We're excited about it. We like it, but it's where we've seen a little more push back. And a couple of states, Washington and California where we have operations have slowed down construction. So that's what we've seen some slowdown also.
Blake Hirschman -- Stephens -- Analyst
Got it. Makes sense. And then just lastly, with the COVID and tax and just the broader effects that that's had, I mean do you think there's any kind of momentum for extending the wind tax credit beyond the end of this year?
Scott Beasley -- Chief Financial Officer
This is Scott. We -- from our understanding of discussions in Washington, that was part of some discussions around stimulus bills. It was not included in the final bill, but those conversations are ongoing and we'll monitor that closely. Even without the production tax credit, as Antonio said, we think the wind business is competitive economically and has a lot of positive drivers both from the corporate ESG and other state mandates. So a PTC extension would be a nice benefit, but not required for that business to be solid.
Blake Hirschman -- Stephens -- Analyst
All right, thanks a lot. I'll hop back in queue.
Operator
And it appears that we have no further questions at this time. I will now turn the program back to Gail Peck.
Gail M. Peck -- SVP, Finance & Treasurer
Thank you, Nicky. Thank you everyone for joining us today. We look forward to speaking with you again next quarter. Bye.
Operator
[Operator Closing Remarks]
Duration: 44 minutes
Call participants:
Gail M. Peck -- SVP, Finance & Treasurer
Antonio Carrillo -- President and Chief Executive Officer
Scott Beasley -- Chief Financial Officer
Brent Thielman -- D.A. Davidson -- Analyst
Bascome Majors -- Susquehanna Financial Group -- Analyst
Stefanos Christ -- CJS Securities -- Analyst
Ian Zaffino -- Oppenheimer -- Analyst
Blake Hirschman -- Stephens -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, Inc (NYSE: ACA) Q1 2020 Earnings Call Apr 29, 2020, 8:30 a.m. Davidson -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Stefanos Christ -- CJS Securities -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Blake Hirschman -- Stephens -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. Turning to slide 15, one of the attractive investment characteristics about our Company is our low leverage, which will enable us to manage through challenging economic scenarios as well as pursue disciplined growth when the time is right. | Davidson -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Stefanos Christ -- CJS Securities -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Blake Hirschman -- Stephens -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. Arcosa, Inc (NYSE: ACA) Q1 2020 Earnings Call Apr 29, 2020, 8:30 a.m. Adjusting for a bad debt recovery of $3 million last year within the Energy Equipment, all business lines contributed to the profit growth with Construction Products being the largest contributor to this quarter's revenue and EBITDA growth. | Davidson -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Stefanos Christ -- CJS Securities -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Blake Hirschman -- Stephens -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. Arcosa, Inc (NYSE: ACA) Q1 2020 Earnings Call Apr 29, 2020, 8:30 a.m. I will provide you with the current conditions within our markets, the highlights of our first quarter performance and later discuss our business line expectations, while Scott will update you on the first quarter financials. | Arcosa, Inc (NYSE: ACA) Q1 2020 Earnings Call Apr 29, 2020, 8:30 a.m. Davidson -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Stefanos Christ -- CJS Securities -- Analyst Ian Zaffino -- Oppenheimer -- Analyst Blake Hirschman -- Stephens -- Analyst More ACA analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Arcosa, Inc. First, Arcosa's business continues to operate well within the COVID-19 environment. |
35434.0 | 2020-04-29 00:00:00 UTC | Arcosa (ACA) Shares Cross Below 200 DMA | ACA | https://www.nasdaq.com/articles/arcosa-aca-shares-cross-below-200-dma-2020-04-29 | nan | nan | In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $38.54, changing hands as low as $37.12 per share. Arcosa Inc shares are currently trading down about 4.7% on the day. The chart below shows the one year performance of ACA shares, versus its 200 day moving average:
Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $37.88.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $38.54, changing hands as low as $37.12 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $37.88. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $38.54, changing hands as low as $37.12 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $37.88. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $38.54, changing hands as low as $37.12 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $37.88. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $38.54, changing hands as low as $37.12 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.14 per share, with $47.85 as the 52 week high point — that compares with a last trade of $37.88. Arcosa Inc shares are currently trading down about 4.7% on the day. |
35435.0 | 2020-03-09 00:00:00 UTC | ACA Crosses Below Key Moving Average Level | ACA | https://www.nasdaq.com/articles/aca-crosses-below-key-moving-average-level-2020-03-09 | nan | nan | In trading on Monday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $38.37, changing hands as low as $36.23 per share. Arcosa Inc shares are currently trading down about 7.9% on the day. The chart below shows the one year performance of ACA shares, versus its 200 day moving average:
Looking at the chart above, ACA's low point in its 52 week range is $28.34 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.18.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Monday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $38.37, changing hands as low as $36.23 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.34 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.18. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Monday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $38.37, changing hands as low as $36.23 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.34 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.18. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Monday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $38.37, changing hands as low as $36.23 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.34 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.18. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Monday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $38.37, changing hands as low as $36.23 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $28.34 per share, with $47.85 as the 52 week high point — that compares with a last trade of $38.18. Arcosa Inc shares are currently trading down about 7.9% on the day. |
35436.0 | 2020-03-04 00:00:00 UTC | Validea Benjamin Graham Strategy Daily Upgrade Report - 3/4/2020 | ACA | https://www.nasdaq.com/articles/validea-benjamin-graham-strategy-daily-upgrade-report-3-4-2020-2020-03-04 | nan | nan | The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
DICKS SPORTING GOODS INC (DKS) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Dick's Sporting Goods, Inc. is an omni-channel sporting goods retailer offering an assortment of sports equipment, apparel, footwear and accessories in its specialty retail stores primarily in the eastern United States. The Company also owns and operates Golf Galaxy, Field & Stream and other specialty concept stores, and Dick's Team Sports HQ, an all-in-one youth sports digital platform offering free league management services, mobile applications for scheduling, communications and live scorekeeping, custom uniforms and FanWear and access to donations and sponsorships. The Company offers its products through a content-rich e-commerce platform that is integrated with its store network and provides customers with the convenience and expertise of a 24-hour storefront. It offers products to its customers through its retail stores and online. The Company offers hardlines, which include items, such as sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arcosa, Inc. is focused on manufacturing and producing infrastructure-related products and services. The Company provides its products to a spectrum of markets throughout construction, energy, and transportation. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. The Construction Products Group segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for infrastructure-related projects. The Energy Equipment Group segment manufactures and sells products for energy-related businesses, including structural wind towers, steel utility structures for electricity transmission and distribution, and storage and distribution containers. The Transportation Products Group segment manufactures and sells products for the inland waterway and rail transportation industries including barges, barge-related products, axles, and couplers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: FAIL
PRICE/BOOK RATIO: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Benjamin Graham has returned 340.00% vs. 202.12% for the S&P 500. For more details on this strategy, click here
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The Company also owns and operates Golf Galaxy, Field & Stream and other specialty concept stores, and Dick's Team Sports HQ, an all-in-one youth sports digital platform offering free league management services, mobile applications for scheduling, communications and live scorekeeping, custom uniforms and FanWear and access to donations and sponsorships. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. Company Description: Dick's Sporting Goods, Inc. is an omni-channel sporting goods retailer offering an assortment of sports equipment, apparel, footwear and accessories in its specialty retail stores primarily in the eastern United States. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. For a full detailed analysis using NASDAQ's Guru Analysis tool, click here Since its inception, Validea's strategy based on Benjamin Graham has returned 340.00% vs. 202.12% for the S&P 500. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham. For a full detailed analysis using NASDAQ's Guru Analysis tool, click here Since its inception, Validea's strategy based on Benjamin Graham has returned 340.00% vs. 202.12% for the S&P 500. |
35437.0 | 2020-02-27 00:00:00 UTC | Arcosa, Inc (ACA) Q4 2019 Earnings Call Transcript | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-q4-2019-earnings-call-transcript-2020-02-27 | nan | nan | Image source: The Motley Fool.
Arcosa, Inc (NYSE: ACA)
Q4 2019 Earnings Call
Feb 27, 2020, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen, and welcome to the Arcosa Inc Fourth Quarter and Full Year 2019 Earnings Conference Call. My name is David, and I'll be your conference call coordinator today. [Operator Instructions]. Now, I would like to turn the call over to your host, Gail Peck, SVP of Finance and Treasurer for Arcosa. Ms. Peck, you may begin.
Gail M. Peck -- Senior Vice President, Finance and Treasurer
Good morning, everyone. Thank you for joining ourearnings call With me today are Antonio Carrillo, President and CEO; and Scott Beasley, CFO. A question-and-answer session will follow their prepared remarks. A copy of yesterday's press release and the slide presentation for this morning's call are posted at our investor relations website, www.ir.arcosa.com. You can access the presentation by going to the Events and Presentation tab of the website.
A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website. Today's comments and presentation slides contain financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles. Reconciliations of non-GAAP financial measure to the closest GAAP measure are included in the appendix of the slide presentation.
Let me also remind you that today's conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the Company's SEC filings including its Form 10-K for more information on these risks and uncertainties.
I would now like to turn the call over to Antonio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Gail. Good morning and thank you for joining today's call to review Arcosa's fourth quarter and full year results and also to discuss our 2020 outlook. Starting on Slide 6, I'll cover the key strategic highlights before letting Scott to give you more details on the quarter. 2019 was a year of solid financial performance and strong free cash flow for Arcosa in its first full year as an independent Company, and we expect 2020 to be another year of growth.
We also completed two important strategic initiatives in the past year with the acquisition of Cherry Companies, a leading natural and recycled aggregates Company in Houston as well as the completion of the first ESG materiality assessment for Arcosa. Turning to Slide 7, the fourth quarter was a solid conclusion to our first full year. Adjusted EBITDA was 17% higher than in 2018 and revenue was up 19%. For the full year, adjusted EBITDA increased 29% which was driven by organic revenue growth, operating margin improvements, and the ACG Materials acquisition we completed at the end of 2018.
We also made progress on all the stage one initiatives, which translated into the impressive year-over-year EBITDA growth. Moving to slide 8, our 2019 accomplishments have set the stage for another year of projected growth in 2020. We expect organic growth and the recently completed Cherry acquisition to lead to a 19% increase in adjusted EBITDA based on the midpoint of our guidance range. As we indicated in the press release, we anticipate 2020 EBITDA to be slightly second half weighted due to the cadence of our barge and wind tower production schedules.
We are optimistic about the strength of most of our markets, and the backlog we have provides good production visibility. Infrastructure spending remains healthy and volumes have been strong in the Construction Products business when we have had dry weather. The barge market continues to recover and we have had two healthy quarters of dry barge orders in a row to complement the recovery that began in late 2018 on the liquid side.
Finally, within the energy equipment, underlying market fundamentals for utility structures remain robust, driven by grid hardening and reliability initiatives. And the demand for storage tanks in the US and Mexico has remained steady. The backlog for wind towers covers most of 2020 although pricing is lower than 2019.
Now that the PTC has been extended, third-party forecast for near-term wind installations have increased. We are optimistic that the new orders will follow. The primary market headwinds for 2020 is the new railcar market which our components business serves. The industry backlog for railcars has declined for four consecutive quarters.
On the other hand, we have been working hard since the spin-off to develop new markets and customers to help us mitigate the impact of the cycle. On the positive side, the continued recovery in our barge business is expected to more than offset the softness in components and we expect transportation EBITDA to grow in 2020. On slide 9, the acquisition of Cherry Companies was another important strategic milestone.
As we discussed in our December call announcing the transaction, Cherry is a leading natural and recycled aggregates Company located in Houston and fills a key geographic gap in our Texas network. We believe recycled aggregates will continue to be a growing market for economic and environmental benefits and we look forward to working with the Cherry team to replicate Cherry's natural and recycled aggregates platform in new geographies.
Finally on slide 10, we continue making progress on our ESG initiatives. Our Materiality Assessments identified eleven material topics across our businesses. And we plan to publish our initial Sustainability Report for 2020 in line with SASB standards. We're incorporating ESG into our values and culture. We are early in our journey, but employees and other key stakeholders have been enthusiastic about the progress we've made to-date.
I will now turn over the call to Scott who will provide you additional details from the quarter. Scott?
Scott Beasley -- Chief Financial Officer
Thank you, Antonio, and good morning everyone. I'll walk through the fourth quarter and full year results for each segment and then give additional color on our free cash flow and outlook for 2020. Starting on page 12, Construction Products revenue grew 56% versus the fourth quarter of 2018, driven by double-digit revenue growth in the legacy businesses, plus the addition of ACG Materials, which we did not own for the full quarter in 2018.
In our legacy aggregates and specialty businesses, strong end market fundamentals driven by public and private demand coupled with drier weather than 2018 led to very strong volume growth. Pricing was relatively flat sequentially as improved pricing in a number of markets nationwide roughly offset softness in other markets.
Segment EBITDA of $17.9 million was 44% higher than last year, but it was $2 million to $3 million below our expectations for two primary reasons. First, our aggregates plants serving oil and gas markets in Texas and Oklahoma continue to be weaker than expected, and we achieved lower margins on those products.
Secondly, we had an unanticipated plant shutdown at one of our specialty products plants during the quarter. This plant is now fully up and running again. Turning to our outlook in the segment for 2020, we expect a strong construction market fundamentals and our operating improvements to translate into higher overall segment margins in 2020 versus 2019 on higher revenues. Our Cherry integration is proceeding well, and we expect it to have a year of EBITDA contribution consistent with what we projected at the time of acquisition.
Please turn to slide 13. Energy Equipment had another strong quarter of performance coming in at the top end of our expected margin range even with headwinds of lower wind tower pricing. Revenue increased to $213 million and adjusted EBITDA was $27.6 million, up 19% from 2018's fourth quarter. Margin improvements in our utility structures, tanks and Mexico businesses more than offset lower margins in our wind towers business leading to the EBITDA margin of 13%. Our energy equipment group is positioned well for 2020 and our visibility is better than it was one year ago.
We received $189 million of utility structures orders in the quarter, driven by strong market demand and our increasing participation in the bid market. Our backlog to be delivered within the next 12 months is up 27% from year-end 2018, which includes orders for both wind towers and utility structures. For the segment, overall, we expect mid-single digit revenue growth in 2020. And we view our fourth quarter margin of 12% to 13% as an achievable target for 2020.
Turning to our Transportation segment on slide 14, fourth quarter revenues increased 30% and adjusted EBITDA increased 12% to $19 million as the strong recovery in our barge business more than offset softness in rail components. I'll start with the barge business. As described in our press release, the barge operating team did an outstanding job ramping up production as the market recovered. 2019 revenue was 73% higher than 2018 and that ramp up included the reopening of our idled facility in Louisiana and significant hiring at our Tennessee and Missouri plants. This year's performance was a testament to our team's ability to scale up and down as market conditions change to create significant value for customers and shareholders.
Given the magnitude of our ramp up, our production schedule did slip several weeks at one of our plants. This resulted in the delay of roughly $15 million worth of barges from Q4 into Q1, leading to lower revenue in the quarter than we expected. However, we delivered those barges during January 2020 and are still on track to meet our barge production schedule this year. Margins should improve significantly in 2020 versus full year 2019.
Now that we are through the start-up phase at our Louisiana plant, and have delivered the lower priced orders that were in our backlog at the beginning of last year. Barge order activity during the quarter was also solid. We received $84 million of orders in Q4 for a book to bill of 0.8. The majority of our orders were for dry barges, marking the second consecutive quarter where dry orders outpace liquid orders. Lower steel prices and an improved outlook for grain exports have been catalysts for the dry barge market, and we are cautiously optimistic that we are in the early stages of a dry barge replacement cycle.
Additionally, inquiry level so far in Q1 have been very healthy, both for dry and liquid barges, giving us confidence in the sustainability of the recovery. Our backlog of $347 million will be delivered entirely in 2020, offering strong production visibility for our plants and enhancing our ability to operate efficiently. We expect to add to our 2020 production with additional orders and we are currently quoting for deliveries in Q4 and into 2021.
Moving to rail components, our business continues to face an industrywide slowdown in new railcar builds, but our team is doing an excellent job, responding to the cyclical slowdown. And we continue to build out our components business that serves the maintenance in non-rail related markets. Overall, we expect the transportation segment to have significant growth in both revenue and EBITDA in 2020. Our barge production schedule has higher deliveries in the second half of the year, so our Company wide revenue and EBITDA will be more heavily weighted in the back half.
Please turn to Slide 15. One highlight of our 2019 performance was the $273 million of free cash flow that we generated during the year. We are in the early stages of building a cash culture at Arcosa which includes process improvements to reduce working capital, incentive compensation changes that incorporate working capital improvements in both our short-term and long-term incentive programs and the implementation of a rigorous capital expenditure decision process.
All of these changes are contributing to our free cash flow improvement and we believe there is still room to improve. The $273 million was held by approximately $50 million of advanced payments from customers to reserve production capacity in our utility structures and barge businesses. Our free cash flow was more than 200% of net income for the year. While we are unlikely to repeat such a strong free cash flow conversion rate in 2020, our 2019 performance shows the excellent cash generation potential of our businesses, plus the impact of a renewed focus on cash flow from our operating teams.
This impressive cash flow has helped us maintain a low leverage position even after our two large construction materials acquisitions. We funded the $298 million Cherry acquisition with a combination of cash and $150 million of new debt, leaving us at an approximate 0.5 net debt to EBITDA ratio, well below our long-term target. In conjunction with raising the new debt to fund Cherry, we also upsized our committed credit facility, keeping our available cash and committed liquidity position relatively unchanged after the acquisition.
Our low leverage position gives us capacity to invest in attractive growth opportunities as well as flexibility to manage through different economic conditions. On page 16, we include several other notes on our 2020 outlook. I will now turn the call back over to Antonio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Scott. I'd like to close today's call with a discussion of our long-term vision and the role that capital allocation plays in our progress. On Slide 18, you can find the four pillars of Arcosa's long-term vision, which will be the foundation for the culture of Arcosa going forward and will serve as a compass for our capital allocation decisions.
Moving to Slide 19, disciplined capital allocation is a key component of making progress on each of the four pillars of our long-term vision. Since our spin-off in November of 2018, we have invested roughly $85 million in capital expenditures, $640 million in acquisitions and returned $25 million to shareholders. Page 20 highlights our approach to acquisitions. We have allocated more than $600 million into Construction Products acquisitions since the time of spin. Aligned with our long-term vision, we view aggregates on specialty materials as attractive markets where we can build sustainable competitive advantages.
Over long periods of time, these markets have experienced steady volume growth as investment in infrastructure has increased. Also, construction products have achieved consistent pricing growth making them highly attractive markets. With more stable long-term demand drivers, the investments we have made in the aggregates and specialty materials business should reduce the cyclicality of our portfolio overtime.
In addition, our aggregates and specialty materials business have unique sustainable competitive advantages. Looking at ACG, the business has long-term reserves processing capacity and strong product innovation capabilities. Cherry has an extensive network of strategically located facilities and reserves across the Houston market, as well as low cost access to critical raw materials. They also have technical expertise in concrete recycling that has been developed over several decades.
Finally, we have found attractive acquisition opportunities in aggregates and specialty materials because of the fragmented industry structure, with the ability to buy small to medium sized assets at reasonable multiples. Through this disciplined acquisition process that began when the business was part of Trinity, we have grown construction aggregates and specialty materials significantly since the spin from $218 million in revenues in 2018 to over $500 million including the pro forma results from Cherry.
Turning to Slide 21, organic growth projects are also important part of our capital allocation strategy. We are allocating capital to all of our businesses to continue to develop organic opportunities. However, we see larger growth opportunities in aggregates, specialty materials and utility structures. Therefore some of the larger growth capex will be allocated in these businesses in 2020. More specifically, in aggregates, we will be focusing on greenfield investments in geographies where organic investment is more attractive than acquisitions.
Also, we will be allocating capital to Cherry to improve the reserve positions around Houston and expand our business model. On Specialty materials, we have expanded our capacity in plaster [Phonetic] In the last few months, but demand continues to grow and we will be evaluating a new plant to serve that market. On the utility structure business we will be adding capacity in existing plants and investing in new equipment to expand our product lines.
Finally, we will be also allocating capital to ESD initiatives as they get developed. These are just some of the ideas we have at the moment. However, we view organic growth as a dynamic process and therefore will be evaluating ideas as they get developed throughout the year. Disciplined organic growth is the best way to increase return in invested capital, which is one of our main objectives. As a reminder, we expect new plant -- a new plant we built to have a payback of no longer than five years, and incremental growth projects to have even shorter paybacks.
These levels of return are accretive to the overall Arcosa returns. To sum it all up, Arcosa is very well positioned to continue capitalizing on the US infrastructure build. In 2020, we are looking ahead to another year of healthy growth and executing on our priorities. Our production visibility is good, most of our markets are very healthy. Our teams are operating well, we have a strong balance sheet and we continue to make strides on our long-term vision.
As a result, we are confident in our position and our ability to achieve strong EBITDA growth again this year. I will now open the call for questions.
Questions and Answers:
Operator
[Operator Instructions]. We'll take our first question from Brent Thielman with D.A. Davidson. Please go ahead, your line is open.
Brent Thielman -- D.A. Davidson & Co. -- Analyst
Thanks, good morning. Strong finish to the year.
Antonio Carrillo -- President and Chief Executive Officer
Thank you.
Brent Thielman -- D.A. Davidson & Co. -- Analyst
Maybe starting on construction products. Just given the legacy business volumes were up, can you help us understand how big the oil and gas piece is now as a percentage of the total pie for Arcosa? And does that particular area contribute margins or pricing kind of in excess to the segment's average?
Scott Beasley -- Chief Financial Officer
Sure. This is Scott. We said, at the time of acquisition, it was roughly 20% of ACG. So much smaller percent of construction products and then of Arcosa as a whole. So not a huge percentage of Arcosa's overall exposure. But it has -- if you follow a drilling activity, it certainly has been hit in the last year and we've had to make a lot of changes to right-size that footprint to correspond to lower demand level. Revenues in that market held up decently well, but the margins have been really compressed, so it's really had an outsized impact on construction margins, particularly in the third and fourth quarter.
Brent Thielman -- D.A. Davidson & Co. -- Analyst
Okay. And then, I guess, my follow-up would be, the book of business and utility structures looks solid, I guess. Can you talk about the bidding environment, pricing conditions? Are you going to continue to focus more on the sort of shorter lead time kind of spot market versus larger programs?
Antonio Carrillo -- President and Chief Executive Officer
Yes. Brent, this is Antonio. Yes. We see a very healthy market out there. I think, we're received our management team about a year ago, they were doing an excellent job and we are changing all of our processes. Last year was a big year for changing our manufacturing processes. We're also working on our sales process and all the management process inside the Company and it's really paying off. We're seeing our bidding activity increase, we're seeing our customer base expand. And we've been more aggressive in penetrating the bid market, which we really didn't play at all. And with that, that's why I mentioned that we are increasing capacity in some of the existing plants we have and expanding our product line. So, overall, very positive about our team, very positive about the market. Our lead times continue to be shorter than some of our competitors. So, I think we're in a really good position.
Scott Beasley -- Chief Financial Officer
And Breant, this is Scott to follow up on that. One of the big advanced billing payments we received was from a utility structures customer that was a large order. So, we're active both on the small bid market, but also the large order side and the team's doing an excellent job pursuing both.
Brent Thielman -- D.A. Davidson & Co. -- Analyst
And you've been able to negotiate some upfront payments there, Scott?
Scott Beasley -- Chief Financial Officer
That's correct. So, with capacity tied in the industry, people have been willing to put down some advanced payments in order to reserve capacity.
Brent Thielman -- D.A. Davidson & Co. -- Analyst
Okay. Great. Thank you. Appreciate it.
Operator
We'll take our next question from Stefanos Crist with CJS Securities. Please go ahead. Your line is open.
Stefanos Crist -- CJS Securities, Inc. -- Analyst
Good morning and congrats on the strong quarter.
Scott Beasley -- Chief Financial Officer
Thank you.
Antonio Carrillo -- President and Chief Executive Officer
Thank you.
Stefanos Crist -- CJS Securities, Inc. -- Analyst
Can you talk a little bit more about organic growth in aggregates and what you're seeing in 2020 as well?
Antonio Carrillo -- President and Chief Executive Officer
Yes, I mentioned in our -- Stefanos, I mentioned in our prepared remarks, as you know, some of the aggregates companies, they multiples to buy some of them are expensive. And we've been able to find bolt-on acquisitions at reasonable price and we expect 2020 to be the same to find some of those small bolt-on acquisitions that we can do. They are very healthy, they are very good for our growth.
On the other hand, there are some markets where we think there's opportunities to go through the Greenfield approach, meaning buying the reserves, and then developing the market or expanding the market, we've seen -- we've done some of those and they're really good for a return invested capital. Both Cherry and ACG brought ideas on where to do that and how to do that. And I think there's great opportunities to continue to expand doing some of those. So I think 2020, to give you a response, you will see some bolt-on acquisitions, some greenfields in our aggregates business.
Stefanos Crist -- CJS Securities, Inc. -- Analyst
Thank you so much. And just a follow-up. Now that the Cherry acquisition is complete, have there been any estimates for synergies there?
Antonio Carrillo -- President and Chief Executive Officer
Yes. Let me give you a sense and I'm not going to give you a number because to be completely honest, we really didn't buy Cherry for synergies. We really bought Cherry because we believe Cherry brings a significant amount of opportunities to grow. And I include those in the synergy bucket, meaning Cherry has an unique business model in Houston, which is generating the -- some of the recycled products, recycling the concrete and then doing the stabilized sand and sand to serve the customers with a full portfolio. We believe there are opportunities to expand Cherry around the Houston market. They already had a business plan to do that, and part of our capital allocation in 2020 will be to expand reserves around Houston to continue growing Cherry. But there's also opportunities to bring that business to other geographies and we're going to be testing that during 2020. I cannot give you dates for that because we are still working with them on that but that's one of our goals.
Stefanos Crist -- CJS Securities, Inc. -- Analyst
Got it. Thank you so much.
Operator
We'll take our next question from Ian Zaffino with Oppenheimer. Please go ahead. Your line is open.
Ian Zaffino -- Oppenheimer & Co. -- Analyst
Hi, great. Thank you. Just keying in on the utility structures business. Where are you seeing the strength there? Is that US, Canada? Maybe what region? If you could give us any color there? That'd be helpful. Thanks.
Antonio Carrillo -- President and Chief Executive Officer
We're seeing the strength really in the US. We do export some to Canada, but it's mainly a US-driven market. We are seeing -- I think we see it in all of our plants. We're seeing throughout the -- all geographies. Of course, you see some in the West, specifically in California has been really strong, but I think we are seeing the demand grow in all of the geographies. So it's not a single area or a single project, let's say, event. If you compare it to other times in this industry, where you see these big lines being built in Texas and other places to serve the wind market, very long life, etc., we're not seeing that. We're seeing large projects -- some of the larger projects, but we are also seeing a lot of the small projects that continue to get built. So it's a healthy mix of large projects and small projects across the US.
Ian Zaffino -- Oppenheimer & Co. -- Analyst
Okay, thanks. And then just on the barge side of the equation here. Liquid, obviously, started out pretty strong, now dry sort of coming through. Is it a matter of dry was just so far below where it should have been and that's why it's accelerating now? Is -- are you seeing a maybe deceleration in liquid? Or are they both kind of accelerating, it's just the dry is firing from much lower base and that's why we're seeing it kind of be the star of the show here now?
Antonio Carrillo -- President and Chief Executive Officer
We saw in 20 -- late 2018, early '19, we started seeing basically all liquid acceleration. The third and fourth quarter we started seeing some dry barges coming in. And as Scott mentioned in the prepared remarks, we continue to see healthy inquiries for both liquid and barge in the first quarter. So, I would say, that's a -- and we said it last year, the dry cargo market had been dead for a long, long time. And it's a very -- it's a market that's, I would say, more sensitive to steel prices. Steel prices came down very significantly in 2019, and I think that's one of the things. At the same time, some of the uncertainties around the trade deal with the agricultural products with China also helped. But I think the age of the barges is just catching up. So, it's also a very healthy market in terms of the number of customers we have. It's not a single customer. It's a wide variety of customers. So overall, we're seeing some healthy signs in the market.
And just to reflect on that, Scott mentioned, some of the barges moved to 2020 from 2019. And if you sit down in our office a year ago, you would notice that we were planning all for liquid barges and then dry cargo barges started arriving and we had to reshuffle all our plans to accommodate the dry and liquid barges. And the positive news of that, those barges moving into 2020 is that, we have been able now to set up our production lines, almost perfectly to serve the market, meaning the barge -- the plan that's -- the best plan that we have for making tank barges, we'll be making all tank barges this is year. The plans that are very good at making dry cargo barges, we'll be focusing on that. So, I think we're really well set up for margin improvement and continuing to serve the market.
Ian Zaffino -- Oppenheimer & Co. -- Analyst
Okay. Thank you very much.
Operator
We'll take our next question from Bascome Majors with Susquehanna. Please go ahead. Your line is open.
Bascome Majors -- Susquehanna Financial Group -- Analyst
Yes. Thanks for taking my questions. In your 16-ish months as a public company, you guys have really found the sweet spot on the M&A front by being able to acquire businesses that are big enough to move the needle for you geographically, synergistic business line, synergistic on the aggregate side and -- but also may be small enough to not attract the double-digit multiples that could destroy some value if you chase them. I'm curious, as you look out over the opportunity set, are there more deals kind of in the sweet spot for you guys that you're looking at over the next year or two. Just trying to see what the M&A front could look like if things go well over the next 12 months to 18 months?
Antonio Carrillo -- President and Chief Executive Officer
Yeah. Thank you, Bascome. Well, as you know, and I've said this before, the M&A has a life of its own because if things open up and close down relatively unexpected. But the reality is that, every one of these businesses that we bought, brings a whole new set of ideas to the table. And that's why I spent so much -- so long in my prepared remarks talking about capital allocation, because I think the main message you need to hear from me and Scott is that, we are going to stay disciplined to our capital allocation model. I think there's great opportunities. At the moment, we are -- we have a pipeline that's healthy, nothing on the -- of the size of Cherry at the moment, but we have quite a bit of ideas and opportunities coming in our way. And sitting down with Cherry and with ACG team, there is still a whole list of things that we have to research and work on to develop opportunities for M&A. So, it's a long answer. We have a -- we are enthusiastic about what we're seeing in the pipeline. Nothing of the size of Cherry at the moment, but that doesn't mean nothing will show up in the next few months.
Bascome Majors -- Susquehanna Financial Group -- Analyst
Okay. And thank you for that. And with the sell-off in the broader market, that's definitely impacted you guys. Stock is -- is the opportunity to be more opportunistic on the buyback, playing into the kind of capital allocation decision?
Scott Beasley -- Chief Financial Officer
Thanks, Bascome. This is Scott. We do have a $50 million share repurchase authorization. We've used about $14 million of the $50 million. So, we have quite a bit of headroom in that authorization and where it makes sense to buy back shares versus invest organically and invest in acquisitions, we'll continue to do that. In the first year, we sell a lot of opportunities in organic growth and acquisitions. But if the returns are better buying back shares, we'll certainly do that.
Bascome Majors -- Susquehanna Financial Group -- Analyst
Okay. Last one from me, as we think about simplifying the portfolio, our -- can you readdress the opportunities to may be look for some of your businesses that are less core to find a new home over time and any interest in that process? Thank you.
Antonio Carrillo -- President and Chief Executive Officer
Yes. Well, as you said, in the second pillar of our long-term vision is that, we're going to try to simplify the portfolio and also reduce the cyclicality and some business has fit that better than others. As you know, we don't comment on M&A. I think we are at the moment operating our businesses like we do every day and we are trying to improve them and grow them and make them better. If an opportunity comes we have an obligation to evaluate it. At the moment, we are functioning and operating all the businesses just like we do every day.
Bascome Majors -- Susquehanna Financial Group -- Analyst
Thank you.
Operator
We'll take our next question from Justin Bergner with G.research. Please go ahead. Your line is open.
Justin Bergner -- G.research -- Analyst
Good morning, Antonio. Good morning, Scott and Gail.
Antonio Carrillo -- President and Chief Executive Officer
Good morning.
Scott Beasley -- Chief Financial Officer
Good morning.
Justin Bergner -- G.research -- Analyst
I wanted to start with construction products. I guess, adjusted EBITDA for that segment grew about $20 million in 2019 but you acquired a little bit more than $30 million of EBITDA with ACG. Was that entire headwind concentrated around the pricing of the aggregates being sold into the oil and gas industries that sort of $10 million headwind when you adjust for the ACG contribution? Or were there other headwinds as well for the EBITDA in 2019 from construction products?
Scott Beasley -- Chief Financial Officer
Sure. This is Scott, Justin. The two primary headwinds we had in 2019 versus 2018 were, on the ACG side, the aggregates plant serving the oil and gas markets and that's what you talked about. And then in the legacy business, we did have some headwinds, primarily related to pricing in DFW. In the first half of the year, the comp in 2019 versus the previous year in 2018 was challenging and we talked about that on a number of calls. So, bit of a headwind in the legacy aggregates business and then the rest in the oil and gas-related aggregates businesses in ACG.
I think that the good news is the volume growth, particularly in the second half of the year in our legacy businesses was very strong. The end markets remain robust. DFW has great private demand, public demand. So, we think the legacy business, in particular is very healthy. The ACG business -- the specialty business is running very well with our building products plan, essentially running at capacity, we're having to turn away customers. So, overall, healthy mix, but those two headwinds in '19 versus the previous year.
Justin Bergner -- G.research -- Analyst
Okay. Thank you. My second question relates to free cash flow and working capital. When you guide working capital flat for 2020, is that inclusive of sort of the advanced billings $50 million benefit sort of reversing or will reverse in 2020? How should I think about the advanced billings in the context of that flat working capital comment?
Scott Beasley -- Chief Financial Officer
Sure. I think you're thinking about it the right way and that $50 million of advanced billings creates a bit of a headwind and even with that, we expect to be working capital neutral adjusting for acquisitions. So, back to building the cash culture at Arcosa and making incremental improvements in AR, or inventory in AP. We would expect to be able to offset that $50 million with kind of core working capital management improvements to end up roughly neutral for the year.
Justin Bergner -- G.research -- Analyst
Okay, great. And just on that point, are you expecting more sort of advanced billings? I realize the one from last year won't repeat. But are you expecting more as a normal course of business related to strong demand in utility structures and barges?
Scott Beasley -- Chief Financial Officer
Yeah. I think it's -- they are opportunistic, we wouldn't build them into our forecast. But certainly in an environment, particularly in the utility structures and barge, where capacity is tighter, we try to work with customers and a lot of time customers want to reserve that space and are willing to put some money down in advance. So it's not part of the working capital neutral guidance we gave for the year, but it's something that we'll try to make more regular as part of our business.
Justin Bergner -- G.research -- Analyst
Great. Thank you for taking my questions.
Operator
We'll take our next question from Julio Romero with Sidoti. Please go ahead. Your line is open.
Julio Romero -- Sidoti & Company -- Analyst
Hey, good morning, everyone.
Antonio Carrillo -- President and Chief Executive Officer
Good morning.
Julio Romero -- Sidoti & Company -- Analyst
On the utility structure side, one of the feedback on that earlier question about your penetration into the bid market, can you elaborate on that ability to toggle that on and off, and how much of the incremental capex year-over-year that you're forecasting is being put toward some additional capacity there?
Antonio Carrillo -- President and Chief Executive Officer
Yes. So the big market is a very large market and we still have a very, very small share of it. So, as I mentioned before, with something we -- as a Company, we will not focused on in the last few years. And I think it provides a good baseline for production and I think it requires a different mentality in terms of how to approach it. Our team is doing a really good job in starting to penetrate it. So, I'm enthusiastic about it, I think, it also provides a great stability to the business.
On the capex side, I would say, of the growth capex, I would say, about half of it will go toward the improvement of our utility structure both expanding capacity, and as I mentioned, also expanding our product line.
Julio Romero -- Sidoti & Company -- Analyst
Thank you. That's helpful. And, I guess, on the corporate cost side, $47 million came well below your guidance, so kudos to you on the cost control side there. But I think your 2020 outlook implies about a $5 million or so step up. Is there may be something incremental that's driving that step up or is it more kind of based on the 4Q run rate?
Scott Beasley -- Chief Financial Officer
Thanks, Julio. This is Scott. It's -- most of the step up is just consistent with operating a bigger company. If you look at our corporate costs as a percent of revenue, as we have grown, as we have new costs related to the Cherry acquisition, that's all built into the $13 million per quarter run rate, which again is pretty consistent as a percent of revenue with where we were in 2018 -- I mean, 2019.
Julio Romero -- Sidoti & Company -- Analyst
Understood. Thanks for taking the questions and best of luck in 2020.
Scott Beasley -- Chief Financial Officer
Thanks, Julio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you.
Operator
We'll take our next question from Blake Hirschman with Stephens. Please go ahead. Your line is open.
Blake Hirschman -- Stephens Inc. -- Analyst
Yeah. Good morning, guys. Congrats on a great year.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Blake.
Scott Beasley -- Chief Financial Officer
Thanks, Blake.
Blake Hirschman -- Stephens Inc. -- Analyst
First on the barge side, the revenue grew like 70% last year, apologies if -- if I missed it, but do you have any rough guide posts as far as what we can see this year for top line growth there, and then just the second part of that being, it's grown sequentially for like the last year, do you think we can see sequential revenue increases throughout 2020 as well?
Scott Beasley -- Chief Financial Officer
This is Scott. I'll take that. If you look at the exit rate of barges, it was about $100 million of revenue in the fourth quarter and we expect that to grow into 2020. So there should be absolute growth in the year. The way the production schedule lays out, Q3 will be the highest quarter particularly in back half. So you'll see a ramp-up from Q1 into Q2 into Q3 and then kind of flat in the second half of the year.
So, a bit of a shift in mix as Antonio mentioned. So perhaps a tiny step down from Q4 into Q1, but then growing pretty, pretty strongly throughout the year as we hit our stride with those -- the different plants operating the best barge type for that plant.
Blake Hirschman -- Stephens Inc. -- Analyst
Got it. All right. And then on wind towers, how much was lower pricing a drag in the quarter? And just to clarify the headwinds there, it really is just on the pricing side and not volume, correct? Because I didn't see the wind towers piece within the positive demand, you know, pieces of the business from the slide. So I just wanted to double check there.
Scott Beasley -- Chief Financial Officer
Correct, Blake. The headwind is from the pricing, our volumes have remained strong and productions in really good shape. Most of that if you look at the sequential margin that went down from 15% to 13%, almost all of that was -- was related to wind tower. So again the team is doing a -- doing a great job, production is strong, but the prices for what we're delivering are lower and that creates that margin headwind.
Blake Hirschman -- Stephens Inc. -- Analyst
Got it. Makes sense. Thanks a lot guys.
Scott Beasley -- Chief Financial Officer
Thank you.
Antonio Carrillo -- President and Chief Executive Officer
Thanks.
Operator
Next, we'll take a follow-up question from Justin Bergner with G.research. Please go ahead, your line is open.
Justin Bergner -- G.research -- Analyst
Thanks guys for the follow-up and also my congratulations on a strong year. First follow up would be related to utility structures in the bid market and pricing. It seems like I'm inferring from the prior question that there has been no sort of weakening of the bid market, such that your energy equipment margins are sort of coming down from higher levels due to some softening of the -- the tightness in utility structure market, is that sort of accurate in the fourth quarter, and if you look into 2020?
Antonio Carrillo -- President and Chief Executive Officer
All right. Justin, this is Antonio. No, I think the utility structure as I mentioned is really strong both on the -- on the traditional customers and the bid market. The margin coming down really has been more related to wind towers, in the energy side. Also on our tanks both in Mexico and US, the margins have been really good and improving. And I think we still have a room for improvement there. I think there is room for improvement in utility structure and I think there is room for improvement in tank. And the area where we have the weakest fundamentals right now is, even though the markets -- it's strong and 2020 and 2021 would probably be strong. The margins will be lower than in the past years in wind towers.
Justin Bergner -- G.research -- Analyst
Okay, thanks for the clarification. And then just secondly, I guess the lower range of your EBITDA guide implies, sort of flat organic EBITDA growth. So what sort of conditions are markets would be pressured, that would lead you to the lower end of that EBITDA guidance sort of flat organic EBITDA growth?
Scott Beasley -- Chief Financial Officer
Sure, Justin. This is Scott. I think if you look at the -- the slide that Antonio mentioned of what are the challenges heading into 2020, there are some scenarios where there could be weakness in those three areas. Wind tower prices is pretty much locked in for the year, but if rail components is worse than expected and potentially weather -- in construction, weather has been a challenge in Q1 across the country.
And so, yeah, I think the lower end of the range would imply kind of worse than expected outcomes there, which again, even if it's flat year-over-year. I think if you add Cherry there'll be absolute growth. But those would be some of the scenarios that would cause kind of flattish year-over-year performance in the legacy portfolio.
Justin Bergner -- G.research -- Analyst
Thanks for the follow-up.
Operator
And there are no further questions on the line at this time, I'll turn the program back to Gail Peck for any closing comments.
Gail M. Peck -- Senior Vice President, Finance and Treasurer
Thank you, David, and thank you everyone for joining us today and we look forward to speaking with you again next quarter.
Operator
[Operator Closing Remarks].
Duration: 45 minutes
Call participants:
Gail M. Peck -- Senior Vice President, Finance and Treasurer
Antonio Carrillo -- President and Chief Executive Officer
Scott Beasley -- Chief Financial Officer
Brent Thielman -- D.A. Davidson & Co. -- Analyst
Stefanos Crist -- CJS Securities, Inc. -- Analyst
Ian Zaffino -- Oppenheimer & Co. -- Analyst
Bascome Majors -- Susquehanna Financial Group -- Analyst
Justin Bergner -- G.research -- Analyst
Julio Romero -- Sidoti & Company -- Analyst
Blake Hirschman -- Stephens Inc. -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, Inc (NYSE: ACA) Q4 2019 Earnings Call Feb 27, 2020, 8:30 a.m. Davidson & Co. -- Analyst Stefanos Crist -- CJS Securities, Inc. -- Analyst Ian Zaffino -- Oppenheimer & Co. -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Justin Bergner -- G.research -- Analyst Julio Romero -- Sidoti & Company -- Analyst Blake Hirschman -- Stephens Inc. -- Analyst More ACA analysis All earnings call transcripts 10 stocks we like better than Arcosa, Inc. As we discussed in our December call announcing the transaction, Cherry is a leading natural and recycled aggregates Company located in Houston and fills a key geographic gap in our Texas network. | Davidson & Co. -- Analyst Stefanos Crist -- CJS Securities, Inc. -- Analyst Ian Zaffino -- Oppenheimer & Co. -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Justin Bergner -- G.research -- Analyst Julio Romero -- Sidoti & Company -- Analyst Blake Hirschman -- Stephens Inc. -- Analyst More ACA analysis All earnings call transcripts 10 stocks we like better than Arcosa, Inc. Arcosa, Inc (NYSE: ACA) Q4 2019 Earnings Call Feb 27, 2020, 8:30 a.m. We are in the early stages of building a cash culture at Arcosa which includes process improvements to reduce working capital, incentive compensation changes that incorporate working capital improvements in both our short-term and long-term incentive programs and the implementation of a rigorous capital expenditure decision process. | Davidson & Co. -- Analyst Stefanos Crist -- CJS Securities, Inc. -- Analyst Ian Zaffino -- Oppenheimer & Co. -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Justin Bergner -- G.research -- Analyst Julio Romero -- Sidoti & Company -- Analyst Blake Hirschman -- Stephens Inc. -- Analyst More ACA analysis All earnings call transcripts 10 stocks we like better than Arcosa, Inc. Arcosa, Inc (NYSE: ACA) Q4 2019 Earnings Call Feb 27, 2020, 8:30 a.m. And the positive news of that, those barges moving into 2020 is that, we have been able now to set up our production lines, almost perfectly to serve the market, meaning the barge -- the plan that's -- the best plan that we have for making tank barges, we'll be making all tank barges this is year. | Arcosa, Inc (NYSE: ACA) Q4 2019 Earnings Call Feb 27, 2020, 8:30 a.m. Davidson & Co. -- Analyst Stefanos Crist -- CJS Securities, Inc. -- Analyst Ian Zaffino -- Oppenheimer & Co. -- Analyst Bascome Majors -- Susquehanna Financial Group -- Analyst Justin Bergner -- G.research -- Analyst Julio Romero -- Sidoti & Company -- Analyst Blake Hirschman -- Stephens Inc. -- Analyst More ACA analysis All earnings call transcripts 10 stocks we like better than Arcosa, Inc. For the full year, adjusted EBITDA increased 29% which was driven by organic revenue growth, operating margin improvements, and the ACG Materials acquisition we completed at the end of 2018. |
35438.0 | 2020-02-26 00:00:00 UTC | Oversold Conditions For Arcosa (ACA) | ACA | https://www.nasdaq.com/articles/oversold-conditions-for-arcosa-aca-2020-02-26 | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $39.52 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 27.9. A bullish investor could look at ACA's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares:
Looking at the chart above, ACA's low point in its 52 week range is $28.34 per share, with $47.85 as the 52 week high point — that compares with a last trade of $39.43.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $39.52 per share. A bullish investor could look at ACA's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $28.34 per share, with $47.85 as the 52 week high point — that compares with a last trade of $39.43. | A bullish investor could look at ACA's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $28.34 per share, with $47.85 as the 52 week high point — that compares with a last trade of $39.43. In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $39.52 per share. | In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $39.52 per share. A bullish investor could look at ACA's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $28.34 per share, with $47.85 as the 52 week high point — that compares with a last trade of $39.43. | In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $39.52 per share. A bullish investor could look at ACA's 27.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $28.34 per share, with $47.85 as the 52 week high point — that compares with a last trade of $39.43. |
35439.0 | 2020-02-20 00:00:00 UTC | Validea Peter Lynch Strategy Daily Upgrade Report - 2/20/2020 | ACA | https://www.nasdaq.com/articles/validea-peter-lynch-strategy-daily-upgrade-report-2-20-2020-2020-02-20 | nan | nan | The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
SOUTHWEST AIRLINES CO (LUV) is a large-cap value stock in the Airline industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Southwest Airlines Co. (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company provides point-to-point service. The Company offers ancillary service offerings, such as Southwest's EarlyBird Check-In and transportation of pets and unaccompanied minors, in accordance with Southwest's respective policies. Southwest's Rapid Rewards frequent flyer program enables program members (Members) to earn points for every dollar spent on Southwest fares. Its Internet Website, Southwest.com, is an avenue for Southwest customers to purchase and manage travel online. As of December 31, 2016, Southwest operated a total of 723 Boeing 737 aircraft and served 101 destinations in 40 states, the District of Columbia, the Commonwealth of Puerto Rico, and eight near-international countries: Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, and Cuba.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
THERMO FISHER SCIENTIFIC INC. (TMO) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Thermo Fisher Scientific Inc. develops, manufactures and sells a range of products. The Company operates through four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. It offers its products and services through various brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific and Unity Lab Services. Life Sciences Solutions segment provides a portfolio of reagents, instruments and consumables used in biological and medical research, discovery and production of new drugs and vaccines. Analytical Instruments segment provides a broad offering of instruments, consumables, software and services that are used for a range of applications in the laboratory. Specialty Diagnostics segment offers a wide range of diagnostic test kits, reagents, culture media, instruments and associated products. Its Laboratory Products and Services segment offers products and solutions needed for the laboratory.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: FAIL
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
BANCO BILBAO VIZCAYA ARGENTARIA SA (ADR) (BBVA) is a large-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a diversified financial company engaged in retail banking, wholesale banking, asset management and private banking. Its segments include Banking Activity in Spain, Real Estate Activity in Spain, the United States Turkey, Mexico, South America and Rest of Eurasia. Its Banking Activity in Spain segment includes Retail Network in Spain, Corporate and Business Banking (CBB), and BBVA Seguros and Asset Management units in Spain. Its Real Estate Activity in Spain segment covers specialist management of real-estate assets in the country. In the United States it offers services through, BBVA Compass Bancshares Inc. and the BBVA New York branch. The Turkey segment represents its stake in the Turkish bank, Turkiye Garanti Bankasi A.S. It offers banking and insurance businesses in Mexico. In South America, it provides banking and insurance businesses. The Rest of Eurasia segment includes business activity in the rest of Europe and Asia.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SALES: PASS
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
CISCO SYSTEMS, INC. (CSCO) is a large-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Cisco Systems, Inc., is engaged in designing and selling a range of technologies across networking, security, collaboration, applications and the cloud. It operates through three geographic segments: Americas; Europe, Middle East, and Africa; and Asia Pacific, Japan, and China. Its product and technologies includes infrastructure platforms; applications; security and other products. It also offers technical support services and advanced services. Infrastructure Platforms consists of its core networking technologies of switching, routing, data center products and wireless that are designed to work together to deliver networking capabilities and transport and store data. Application product category consists primarily of software-related offerings that utilize the core networking and data center platforms to provide their functions. Security product category primarily includes Company's unified threat management products, advanced threat security products, and web security products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
BANK OF MONTREAL (USA) (BMO) is a large-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 85% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Bank of Montreal (the Bank) is a financial services provider. The Bank provides a range of personal and commercial banking, wealth management and investment banking products and services. The Bank conducts its business through three operating groups: Personal and Commercial Banking (P&C), Wealth Management and BMO Capital Markets. The P&C business includes two retail and business banking operating segments, such as Canadian Personal and Commercial Banking (Canadian P&C), and the United States Personal and Commercial Banking (U.S. P&C). The Bank's Wealth Management business serves a range of client segments, from mainstream to ultra-high net worth and institutional, with an offering of wealth management products and services, including insurance. BMO Capital Markets is a North American-based financial services provider offering a range of products and services to corporate, institutional and government clients. The Bank has over 900 bank branches in Canada and the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: FAIL
FREE CASH FLOW: BONUS PASS
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
HERMAN MILLER, INC. (MLHR) is a mid-cap value stock in the Constr. - Supplies & Fixtures industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Herman Miller, Inc. is engaged in the research, design, manufacture, sale and distribution of office furniture systems, seating products, home furnishings and related services, among others. The Company's segments include North American Furniture Solutions, which includes the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, across the United States and Canada; EMEA, Latin America, and Asia Pacific (ELA) Furniture Solutions, which includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the Europe, Middle East and Africa (EMEA), Latin America and Asia-Pacific geographic regions, among others; Specialty segment, which includes the design, manufacture and sale of furniture products and textiles, and Consumer segment, which includes the sale of modern design furnishings and accessories to third-party retail distributors.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ENBRIDGE INC (USA) (ENB) is a large-cap growth stock in the Natural Gas Utilities industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Enbridge Inc. is an energy infrastructure company with business platforms that include a network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. It operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of pipelines and related terminals that transport various grades of crude oil and other liquid hydrocarbons. Gas Transmission and Midstream consists of its investments in natural gas pipelines and gathering and processing facilities, including US Gas Transmission, and Canadian Gas Transmission and Midstream. Gas Distribution consists of its natural gas utility operations. Green Power and Transmission consists of investments in renewable energy assets and transmission facilities. The Energy Services businesses undertake physical commodity marketing activity and logistical services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MCGRATH RENTCORP (MGRC) is a small-cap growth stock in the Real Estate Operations industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: McGrath RentCorp is a diversified business-to-business rental company. The Company operates through four business segments: modular building and portable storage segment (Mobile Modular); electronic test equipment segment (TRS-RenTelco); a subsidiary providing containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (Adler Tanks), and a subsidiary classroom manufacturing business selling modular buildings used primarily as classrooms in California (Enviroplex). The Mobile Modular business segment includes Mobile Modular Portable Storage division. As of December 31, 2016, the Company's TRS-RenTelco rented and sold electronic test equipment nationally and internationally from three facilities located in Grapevine, Texas (the Dallas facility), Dollard-des-Ormeaux, Canada (the Montreal facility) and Bangalore, Karnataka, India (the Bangalore facility). Adler Tanks purchases tanks and boxes from various manufacturers located throughout the country.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
NAPCO SECURITY TECHNOLOGIES INC (NSSC) is a small-cap growth stock in the Security Systems & Services industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: NAPCO Security Technologies, Inc. is a manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold across the world principally to independent distributors, dealers and installers of security equipment. The Company manufactures and markets various products for alarm systems, which include automatic communicators, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panel and area detectors. It manufactures a range of door locking devices, including microprocessor-based electronic door locks with push button, card reader and bio-metric operation, door alarms, mechanical door locks and simple dead bolt locks. It also markets peripheral and related equipment manufactured by other companies.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ROGERS CORPORATION (ROG) is a mid-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Rogers Corporation manufactures and sells engineered materials and components for mission critical applications. The Company's segments are Advanced Connectivity Solutions (ACS), Elastomeric Material Solutions (EMS), Power Electronics Solutions (PES) and Other. The ACS segment manufactures and sells circuit materials and solutions for applications in wireless communications infrastructure, automotive, connected devices, consumer electronics and aerospace/defense. The EMS segment manufactures and sells elastomeric material solutions for critical cushioning, sealing, impact protection and vibration management applications, including general industrial, portable electronics, consumer goods, automotive, construction and printing applications. The PES segment manufactures and sells ceramic substrate materials for power module applications, laminated bus bars for power inverter and interconnect applications, and micro-channel coolers. Its other business consists of elastomeric components.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
CALLAWAY GOLF CO (ELY) is a small-cap growth stock in the Recreational Products industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Callaway Golf Company designs, manufactures and sells golf clubs, golf balls, golf bags and other golf-related accessories. The Company has two segments: the golf clubs segment and golf balls segment. The golf clubs segment consists of its woods, hybrids, irons and wedges, and Odyssey putters. This segment also includes other golf-related accessories, royalties from licensing of its trademarks and service marks and sales of pre-owned golf clubs. The golf balls segment consists of Callaway Golf and Strata balls that are designed, manufactured and sold by the Company. It sells its products to retailers, directly and through its subsidiaries, and to third-party distributors. It sells pre-owned golf products through its Website, www.callawaygolfpreowned.com. In addition, it sells Callaway Golf and Odyssey products, including Toulon Design by Odyssey, directly to consumers through its Websites, www.callawaygolf.com and www.odysseygolf.com.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
CNA FINANCIAL CORP (CNA) is a large-cap value stock in the Insurance (Prop. & Casualty) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: CNA Financial Corporation is an insurance holding company. The Company's segments include Specialty, Commercial, International, Life & Group Non-Core, and Corporate & Other Non-Core. Its Specialty segment provides a range of professional, financial, and specialty property, and casualty products and services. The Commercial segment includes property and casualty insurance products and services to small, middle-market and large businesses. Its International segment provides management and professional liability coverages, as well as a range of other property and casualty insurance products and services. The Life & Group Non-Core segment primarily includes the results of its individual and group long term care businesses that are in run-off. Its Corporate & Other Non-Core segment primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
COOPER COMPANIES INC (COO) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Cooper Companies, Inc. is a global medical device company. The Company operates through two business units: CooperVision, Inc. and CooperSurgical, Inc. CooperVision offers soft contact lenses for the vision correction market. CooperVision develops, manufactures and markets a range of single-use, two-week and monthly contact lenses. CooperVision services three primary regions: the Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific. CooperVision offers spherical, aspherical, toric, multifocal and toric multifocal lens products in various modalities. CooperVision's products are primarily manufactured at its facilities located in the United Kingdom, Puerto Rico, Hungary, Costa Rica and New York. CooperSurgical offers an array of products and services focused on advancing the health of families through a portfolio of products and services focusing on women's health, fertility and diagnostics.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: FAIL
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GLAXOSMITHKLINE PLC (ADR) (GSK) is a large-cap growth stock in the Major Drugs industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: GlaxoSmithKline PLC is a global healthcare company. The Company operates through two segments: Pharmaceuticals and Vaccines. The Company focuses on its research across six areas: Respiratory diseases, human immunodeficiency virus (HIV)/infectious diseases, Vaccines, Immuno-inflammation, Oncology and Rare diseases. The Company makes a range of prescription medicines and vaccines products. The Pharmaceuticals business discovers, develops and commercializes medicines to treat a range of acute and chronic diseases. The Vaccines business provides vaccines for people of all ages from babies and adolescents to adults and older people. It has a portfolio of medicines in respiratory and HIV. Its Pharmaceuticals business includes Respiratory, HIV, Specialty products, and Classic and Established products. Its Vaccines business has a portfolio of over 40 pediatric, adolescent, adult, older people and travel vaccines.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
HELEN OF TROY LIMITED (HELE) is a mid-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Helen Of Troy Limited is a global consumer products company that offers a range of solutions for its customers through a range of brands. The Company is a global designer, developer, importer, marketer and distributor of a portfolio of brand-name consumer products. The Company has three segments. The Housewares segment provides a range of consumer products for the home. The Health & Home segment focuses on healthcare devices, such as thermometers, humidifiers, blood pressure monitors and heating pads; water filtration systems, and small home appliances, such as portable heaters, fans, air purifiers, and insect control devices. The Beauty segment's products include electric hair care, beauty care and wellness appliances; grooming tools and accessories, and liquid-, solid- and powder-based personal care and grooming products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
FUNKO INC (FNKO) is a small-cap value stock in the Recreational Products industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Funko, Inc. is a pop culture consumer products company. The Company is engaged in selling a broad range of pop culture consumer products, featuring characters from a range of media and entertainment content, including movies, TV shows, video games, music and sports. Its products combine its proprietary brands and designs into properties it licenses from content providers. Its product categories include figures, plush, accessories and other. It also offers different types of bags and wallets. It offers its products under various brands, including Pop!, Mystery Minis, Dorbz, Pint Size Heroes, Rock Candy, Galactic or Hero Plushies, SuperCute, MyMoji and Loungefly. The Company has licensed properties into four categories: classic evergreen, movie release, current TV and current video game.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MAGNOLIA OIL & GAS CORP (MGY) is a mid-cap growth stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 74% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Magnolia Oil & Gas Corp, formerly TPG Pace Energy Holdings Corp, is an oil and gas exploration and production company. The Company owns assets located in the Eagle Ford Shale and Austin Chalk formations in South Texas. The Company operates in Karnes County and Giddings Field. It operates 14, 070 net acres in Karnes County and approximately 3,60,000 net acres in Giddings Field.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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WILLIS TOWERS WATSON PLC (WLTW) is a large-cap growth stock in the Insurance (Miscellaneous) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Willis Towers Watson Public Limited Company (Willis Towers Watson) is a holding company. The Company operates as a global advisory, broking and solutions company. It is engaged in offering risk management, insurance broking, consulting, technology and solutions, and private exchanges. The Company operates through eight segments: Willis International; Willis North America; Willis Capital, Wholesale & Reinsurance (CWR); Willis GB; Towers Watson Benefits; Towers Watson Exchange Solutions; Towers Watson Risk and Financial Services; and Towers Watson Talent and Rewards. The Willis GB segment comprises four business units: Property and Casualty, Transport, Financial Lines and Retail Networks. The Willis Capital Wholesale and Reinsurance segment includes Willis Re; Willis Capital Markets & Advisory; Willis' wholesale business, and Willis Portfolio Underwriting Services. The Willis North America segment provides risk management, insurance brokerage and related risk services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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FS KKR CAPITAL CORP (FSK) is a mid-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: FS KKR Capital Corp, formerly FS Investment Corporation is an externally managed, non-diversified, closed-end management investment company. The Company's investment objectives are to generate current income and long-term capital appreciation. Its portfolio consists primarily of investments in senior secured loans and second lien secured loans of the private United States middle market companies and subordinated loans of the private United States companies. It may purchase interests in loans or make other debt investments, including investments in senior secured bonds, through secondary market transactions in the over-the-counter market or directly from target companies as primary market or directly originated investments. It invests in a range of industries, including capital goods; consumer services; consumer durables and apparel; materials; commercial and professional services, and diversified financials. Its investment advisor is FB Income Advisor, LLC.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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AARON'S, INC. (AAN) is a mid-cap growth stock in the Rental & Leasing industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Aaron's, Inc. (Aaron's) is an omnichannel provider of lease-purchase solutions. The Company engages in the sales and lease ownership and specialty retailing of furniture, consumer electronics, home appliances and accessories through its Company-operated and franchised stores in Canada, as well as its e-commerce platform, Aarons.com. Its segments include Sales and Lease Ownership, Progressive Finance Holdings, LLC (Progressive), Dent-A-Med, Inc., doing business as the HELPcard (DAMI), Franchise and Manufacturing. Its stores carry brands, such as Samsung, Frigidaire, Hewlett-Packard, LG, Whirlpool, Simmons, Philips, Ashley and Magnavox. As of December 31, 2016, it had 1,864 Aaron's stores, consisted of 1,165 Company-operated stores in 28 states, the District of Columbia and Canada, and 699 independently-owned franchised stores in 46 states and Canada. It owns trademarks and trade names used in business, including Progressive, Dent-A-Med, the HELPcard and Woodhaven Furniture Industries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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SARATOGA INVESTMENT CORP (SAR) is a small-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Saratoga Investment Corp. is a specialty finance company. The Company is an externally managed, closed-end, non-diversified management investment company. The Company invests primarily in leveraged loans and mezzanine debt issued by private middle-market companies in the United States. Its investment objective is to generate current income and, to a lesser extent, capital appreciation from its investments. It purchases mezzanine debt and makes equity investments in middle market companies. It may invest in other investments, such as investments in distressed debt, including securities of companies in bankruptcy, foreign debt, private equity, securities of public companies that are not thinly traded and structured finance vehicles, such as collateralized loan obligation funds. Its leveraged loan portfolio consists primarily of first lien and second lien term loans. The Company's investment activities are externally managed and advised by Saratoga Investment Advisors, LLC.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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KNOWLES CORP (KN) is a small-cap growth stock in the Audio & Video Equipment industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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MICHAELS COMPANIES INC (MIK) is a small-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Peter Lynch changed from 59% to 78% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Michaels Companies, Inc. (Michaels) is an arts and crafts specialty retailer in North America. The Company's segments include Michaels-U.S., Michaels-Canada, Aaron Brothers, Pat Catan's and Darice. As of January 28, 2017, the Company operated 1,223 Michaels retail stores in 49 states and Canada, with approximately 18,000 average square feet of selling space per store. It operated 109 Aaron Brothers stores in nine states, with approximately 5,500 average square feet of selling space and 35 Pat Catan's stores in five states, with approximately 32,000 average square feet of selling space, as of January 28, 2017. The Company also operates an international wholesale business under the Darice brand name. The Company's stores purchase custom frames, framing supplies and mats from its framing operation and subsidiary, Artistree, Inc. (Artistree), which consists of a manufacturing facility and four regional processing centers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: BONUS PASS
NET CASH POSITION: NEUTRAL
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VERITEX HOLDINGS INC (VBTX) is a small-cap growth stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Veritex Holdings, Inc. is a bank holding company. The Company, through its subsidiary, Veritex Community Bank (the Bank), a Texas state chartered bank, provides relationship-driven commercial banking products and services tailored to meet the needs of small to medium-sized businesses and professionals. It operates through community banking segment. The Bank provides a range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as automated teller machines, and banking by telephone, mail and personal appointment. It also offers debit cards, direct deposit, cashier's checks and letters of credit, as well as treasury management services, including wire transfer services and automated clearinghouse services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
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STORE CAPITAL CORP (STOR) is a mid-cap growth stock in the Real Estate Operations industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: STORE Capital Corporation is an internally managed net-lease real estate investment trust. The Company is engaged in the acquisition, investment and management of single tenant operational real estate (STORE) properties. As of December 31, 2016, the Company owned a portfolio that consisted of investments in 1,660 property locations operated by 360 customers across 48 states. Its customers operate across a range of industries within the service, retail and manufacturing sectors of the United States economy, with restaurants, early childhood education centers, movie theaters, health clubs and furniture stores. The Company's portfolio includes investments in approximately 1,330 property locations operated by over 300 customers across approximately 50 states. The Company provides real estate financing solutions principally to businesses that own STORE properties and operate within the broad-based service, retail and industrial sectors of the United States economy.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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NEWTEK BUSINESS SERVICES CORP (NEWT) is a small-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Newtek Business Services Corp. is an internally managed non-diversified closed-end management investment company. The Company's investment objective is to generate both current income and capital appreciation primarily through loans originated by its small business finance platform and its equity investments in certain portfolio companies that it controls. The Company is a national non-bank lender that provides, together with its controlled portfolio companies, a range of business services and financial products under the Newtek brand to the small and medium-sized business (SMB) market. The Company issues debt and makes equity investments in portfolio companies in various industries. Its products and services include Business Lending including the United States Small Business Administration (SBA) 7(a) and 504 lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Data Backup, and Payroll and Benefits Solutions to SMB accounts across all industries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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WALGREENS BOOTS ALLIANCE INC (WBA) is a large-cap value stock in the Retail (Drugs) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Walgreens Boots Alliance, Inc., is a holding company. The Company is a pharmacy-led health and wellbeing company. The Company operates through three segments: Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. The Retail Pharmacy USA segment consists of the Walgreen Co. (Walgreens) business, which includes the operation of retail drugstores, care clinics and providing specialty pharmacy services. The Retail Pharmacy International segment consists primarily of the Alliance Boots pharmacy-led health and beauty stores, optical practices and related contract manufacturing operations. The Pharmaceutical Wholesale segment consists of the Alliance Boots pharmaceutical wholesaling and distribution businesses. The Company's portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as global health and beauty product brands, including No7, Botanics, Liz Earle and Soap & Glory.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GREAT AJAX CORP (AJX) is a small-cap value stock in the Investment Services industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Great Ajax Corp. is an externally managed real estate company. The Company is focused on acquiring, investing in and managing a portfolio of re-performing and non-performing mortgage loans secured by single-family residences and single-family properties. Its segment is focused on non-performing mortgages and re-performing mortgages. It also invests in loans secured by multi-family residential and commercial mixed use retail/residential properties, as well as in the properties directly. It also holds real estate-owned properties (REO) acquired upon the foreclosure or other settlement of its owned non-performing loans, as well as through outright purchases. It is managed by Thetis Asset Management LLC, an affiliated entity. Its mortgage loans and other real estate assets are serviced by Gregory Funding LLC, an affiliated entity. The Company conducts its business through its operating partnership, Great Ajax Operating Partnership L.P.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
NEXTGEN HEALTHCARE INC (NXGN) is a small-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: NextGen Healthcare, Inc., formerly Quality Systems, Inc., provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices. The Company operates through three segments: the NextGen Division, the RCM Services Division and the QSI Dental Division. It also provides implementation, training, support and maintenance for software and complementary services, such as revenue cycle management (RCM) and electronic data interchange (EDI). The Company's clients include single and small practice physicians, networks of practices, such as physician hospital organizations (PHOs), management service organizations (MSOs), accountable care organizations (ACOs), ambulatory care centers, community health centers, and medical and dental schools.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: FAIL
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arcosa, Inc. is focused on manufacturing and producing infrastructure-related products and services. The Company provides its products to a spectrum of markets throughout construction, energy, and transportation. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. The Construction Products Group segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for infrastructure-related projects. The Energy Equipment Group segment manufactures and sells products for energy-related businesses, including structural wind towers, steel utility structures for electricity transmission and distribution, and storage and distribution containers. The Transportation Products Group segment manufactures and sells products for the inland waterway and rail transportation industries including barges, barge-related products, axles, and couplers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
CIGNA CORP (CI) is a large-cap growth stock in the Insurance (Accident & Health) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Cigna Corporation is a health services company. The Company offers medical, dental, disability, life and accident insurance and related products and services. The Company's segments include Global Health Care, Global Supplemental Benefits, Group Disability and Life, and Other Operations and Corporate. Its Global Health Care segment aggregates the commercial and Government operating segments. Its commercial operating segment encompasses the United States commercial and certain international healthcare businesses serving employers and their employees, other groups, and individuals. Its Global Supplemental Benefits segment offers supplemental health, life and accident insurance products in selected international markets and in the United States. Its Group Disability and Life segment provides group long-term and short-term disability insurance, group life insurance, accident and specialty insurance and related services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
WATFORD HOLDINGS LTD (WTRE) is a small-cap value stock in the Insurance (Life) industry. The rating according to our strategy based on Peter Lynch changed from 72% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Watford Holdings Ltd is a holding company. The Company, through its subsidiaries, is a global property and casualty (P&C), insurance and reinsurance company. Its four lines of business includes casualty reinsurance, other specialty reinsurance, property catastrophe reinsurance and insurance programs and coinsurance. It has operations across Bermuda, the United States and Europe. Its main operating subsidiary is Watford Re Ltd. (Watford Re), which is focused on writing business. Watford Re also writes mortgage insurance and reinsurance. In the United States, the Company is authorized to write commercial P&C lines of business through its Watford Insurance Company (WIC) and Watford Specialty Insurance Company (WSIC) subsidiaries. In Europe, it writes direct insurance and coinsurance business, primarily in personal P&C lines, through insurers and program managers that develop and distribute specialized insurance products for its WICE subsidiary.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
LEVI STRAUSS & CO. (LEVI) is a mid-cap growth stock in the Apparel/Accessories industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Levi Strauss & Co. is an apparel company. The Company designs, markets and sells its products under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands directly or through third parties and licensees. Its products include jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories for men, women and children across the world. The Company's trademarks include Arcuate Stitching Design, the Tab Device, 501, the Two Horse Design, the Housemark and the Wings and Anchor Design. The Company operates in three geographic segments: the Americas, Europe and Asia. The Company's products are sold in more than 110 countries. The Company licenses its Levi's and Dockers trademarks for a range of product categories in markets in each of its regions, including footwear, belts, wallets and bags, outerwear, sweaters, dress shirts, kidswear, sleepwear and hosiery.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
STERIS PLC (STE) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Steris plc, formerly Steris Ltd, is a provider of infection prevention and other procedural products and services. The Company offers a mix of capital equipment products, such as sterilizers and washers, surgical tables, lights and equipment management systems and connectivity solutions, such as operating room integration; consumable products, such as detergents and gastrointestinal endoscopy accessories and other products; services, including equipment installation and maintenance, microbial reduction of medical devices, instrument and scope repair solutions, laboratory services and outsourced reprocessing. The Company operates through four reportable business segments: Healthcare Products, Healthcare Specialty Services, Life Sciences, and Applied Sterilization Technologies. It's Corporate and other segment includes the Defense and Industrial business unit. The Company serves the customers in the United Kingdom, the United States and many other countries throughout the world.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GREIF, INC. (GEF) is a mid-cap value stock in the Containers & Packaging industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Greif, Inc. is a producer of industrial packaging products and services. The Company's segments are Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services, and Land Management. The Rigid Industrial Packaging & Services segment is engaged in the production and sale of rigid industrial packaging products, and services, such as container life cycle management, filling, logistics, warehousing and other packaging services. The Paper Packaging & Services segment is engaged in the production and sale of containerboard, corrugated sheets, corrugated containers and other corrugated products. The Flexible Products & Services segment is engaged in the production and sale of flexible intermediate bulk containers and related services on a global basis. The Land Management segment is involved in the management and sale of timber. As of October 31, 2016, the Company had operations in over 45 countries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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AMERIS BANCORP (ABCB) is a mid-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Ameris Bancorp is a financial holding company. The Company's business is conducted through its banking subsidiary, Ameris Bank (the Bank), which provides a range of banking services to its retail and commercial customers. The Company operates through four segments: the Banking Division, the Retail Mortgage Division, the Warehouse Lending Division and the SBA Division. The Banking Division is engaged in the delivery of financial services, which include commercial loans, consumer loans and deposit accounts. The Retail Mortgage Division is engaged in the origination, sales and servicing of one- to four-family residential mortgage loans. The Warehouse Lending Division is engaged in the origination and servicing of warehouse lines to other businesses that are secured by underlying one- to four-family residential mortgage loans. The SBA Division is engaged in the origination, sales and servicing of small business administration (SBA) loans.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
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WNS (HOLDINGS) LIMITED (ADR) (WNS) is a mid-cap growth stock in the Computer Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: WNS (Holdings) Limited is a global provider of business process management (BPM) services. The Company offers data, voice, analytical and business transformation services. The Company's segments include WNS Global BPM and WNS Auto Claims BPM. Its operating segments include travel, insurance, banking and financial services, healthcare, utilities, retail and consumer products groups, auto claims and others. The WNS Global BPM includes the Company's business activities with the exception of WNS Auto Claims BPM. WNS Auto Claims BPM is the Company's automobile claims management business. The Company focuses on various industry verticals, such as insurance; travel and leisure; diversified businesses, including manufacturing, retail, consumer packaged goods (CPG), media and entertainment, and telecommunication (telecom); utilities; consulting and professional services; banking and financial services; healthcare, and shipping and logistics.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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HAYNES INTERNATIONAL, INC. (HAYN) is a small-cap growth stock in the Iron & Steel industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Haynes International, Inc. (Haynes) is a producer of nickel- and cobalt-based alloys in flat product forms, such as sheet, coil and plate forms. The Company also produces its products as seamless and welded tubulars, and in slab, bar, billet and wire forms. It focuses on developing, manufacturing, marketing and distributing alloys, which are sold in the aerospace, chemical processing and industrial gas turbine industries. Its products consist of high-temperature resistant alloys (HTA) products and corrosion-resistant alloys (CRA) products. Its HTA products are used in manufacturing components for the hot sections of gas turbine engines. Its CRA products are used in a range of applications, such as chemical processing, power plant emissions control, hazardous waste treatment, sour gas production and pharmaceutical vessels. The Company has a four-high Steckel rolling mill used in hot rolling high-performance alloys. The Company has operations in the United States, Europe and China.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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AVIS BUDGET GROUP INC. (CAR) is a mid-cap value stock in the Rental & Leasing industry. The rating according to our strategy based on Peter Lynch changed from 72% to 78% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Avis Budget Group Inc. is a provider of vehicle rental and car sharing services. The Company operates three brands, which include Avis, Budget and Zipcar. Avis and Budget are rental car suppliers. It also owns Payless, which is a car rental brand; Apex, which is a car rental brand in New Zealand and Australia; Maggiore, a vehicle rental brand in Italy, and France Cars, which operates light commercial vehicle fleets in France. The Company operates in two segments: Americas and International. The Americas segment provides and licenses the Company's brands to third parties for vehicle rentals and ancillary products and services in North America, South America, Central America and the Caribbean, and operates its car sharing business in certain of these markets. The International segment provides and licenses the Company's brands to third parties for vehicle rentals and ancillary products and services in Europe, the Middle East, Africa, Asia, Australia and New Zealand.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: BONUS PASS
NET CASH POSITION: NEUTRAL
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FUJIFILM HOLDINGS CORP. (ADR) (FUJIY) is a large-cap value stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: FUJIFILM Holdings Corporation is a Japan-based holding company engaged in the business related to photography, medical care & printing & liquid crystal display materials and copying machines. The Company operates in three business segments. Imaging Solutions segment develops, manufactures and sells color films, digital cameras, color paper services for photographic prints, instant printing equipment and optical devices mainly for general consumers. Healthcare & Materials Solutions segment provides medical system equipment, cosmetics and supplements, pharmaceutical products, biopharmaceutical manufacturing development contract, regenerative medicine products, chemical products, graphic system equipment, inkjet equipment, display materials, recording media and electronic materials for commercial use. Document Solutions segment provides digital multi-functional peripherals, publishing systems, document management software and related solution services mainly for commercial use.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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LOGITECH INTERNATIONAL SA (USA) (LOGI) is a mid-cap growth stock in the Computer Peripherals industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Logitech International S.A. is a holding company. The Company designs, manufactures and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms. The Company operates through peripheral segment. The Company offers its products to a network of domestic and international customers, including direct sales to retailers, e-tailers, and indirect sales through distributors. The Company's retail network across the world includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers and online merchants. Its music solutions are focused primarily on mobile speakers, including its UE BOOM family of mobile wireless speakers, its Jaybird wireless audio wearables for sports and active lifestyles, and its custom in-ear headphones. It offers a range of gaming gear for gamers, including mice, keyboards, headsets, gamepads and steering wheels.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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MELLANOX TECHNOLOGIES, LTD. (MLNX) is a mid-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Mellanox Technologies, Ltd. is a fabless semiconductor company. The Company is an integrated supplier of interconnect products and solutions based on the InfiniBand and Ethernet standards. The Company operates in the development, manufacturing, marketing and sales of interconnect products segment. Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment and other embedded systems. It operates its business globally and offers products to customers at various levels of integration. The products it offers include integrated circuits (ICs), adapter cards, switch systems, multi-core and network processors, cables, modules, software, services and accessories. Together these products form a networking solution, focused on computing, storage and communication applications used in multiple markets, including high-performance computing (HPC), cloud, Web 2.0, storage, financial services, and enterprise data center (EDC).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: FAIL
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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RADIANT LOGISTICS INC (RLGT) is a small-cap growth stock in the Misc. Transportation industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Radiant Logistics, Inc. operates as a third-party logistics company, providing multi-modal transportation and logistics services. The Company is organized in two geographic operating segments: United States and Canada. Its transportation services for both the United States and Canada segments are placed into categories of freight forwarding and freight brokerage services. The Company services an account base consisting of consumer goods, food and beverage, manufacturing and retail customers, which the Company supports from a network of operating locations, as well as an integrated international service partner network. As of June 30, 2016, it provided these services through a multi-brand network, including 18 Company-owned offices. As of June 30, 2016, it had approximately 10,000 asset-based transportation companies, including motor carriers, railroads, airlines and ocean lines in its carrier network. Its brands include Radiant, Wheels, Airgroup, Adcom, DBA and Service By Air.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: FAIL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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PACWEST BANCORP (PACW) is a mid-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: PacWest Bancorp is a bank holding company for Pacific Western Bank (the Bank). The Company is focused on relationship-based business banking to small, middle-market and venture-backed businesses. As of October 23, 2017, the Bank offered a range of loan and deposit products and services through 83 branches located throughout the state of California, one branch located in Durham, North Carolina, and several loan production offices located in cities across the country. The Company provides commercial banking services, and deposit and treasury management services to small and middle-market businesses. It offers products and services through its CapitalSource and Square 1 Bank divisions. In addition, the Company provides investment advisory and asset management services to select clients through Square 1 Asset Management, Inc., a subsidiary of the Bank.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SALES: PASS
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
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GRAND CANYON EDUCATION INC (LOPE) is a mid-cap growth stock in the Schools industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Grand Canyon Education, Inc. is engaged in the provision of postsecondary education. The Company is a regionally accredited university. The Company offers the degrees, including Doctor of Education, Doctor of Business Administration, Doctor of Nursing Practice, Doctor of Philosophy, Education Specialist, Master of Divinity, Master of Arts, Master of Education, Master of Business Administration and Master of Public Administration, Master of Public Health, Master of Science, Bachelor of Arts, Bachelor of Science, and a range of programs for its degrees. It also offers certificate programs, which consist of a series of courses focused on a particular area of study for both the post-baccalaureate and post-graduate students. The Company offers its ground-based programs to students through three 15-week semesters in a calendar year and to online students in courses that generally range from 5 to 16 weeks throughout the calendar year.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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VIRTUS INVESTMENT PARTNERS INC (VRTS) is a small-cap value stock in the Investment Services industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Virtus Investment Partners, Inc. (Virtus) is a provider of investment management and related services to individuals and institutions. The Company provides its products in various forms and through multiple distribution channels. Its retail products include open-end mutual funds, closed-end funds, exchange traded funds, variable insurance funds, undertakings for collective investments in transferable securities (UCITS) and separately managed accounts. Its open-end mutual funds are distributed through intermediaries. Its closed-end funds trade on the New York Stock Exchange. Its variable insurance funds are available as investment options in variable annuities and life insurance products distributed by life insurance companies. Separately managed accounts consists of intermediary programs, sponsored and distributed by unaffiliated brokerage firms, and private client accounts, which are offered to the high net-worth clients of its affiliated managers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
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MVB FINANCIAL CORP (MVBF) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: MVB Financial Corp. (MVB) is a financial holding company. Through its subsidiaries, MVB Bank, Inc. (the Bank), MVB Mortgage and MVB Insurance, LLC, the Company provides community banking, mortgage banking, insurance and wealth management services to individuals and corporate clients in the Mid-Atlantic region. It operates through four segments: commercial and retail banking, mortgage banking, financial holding company, and insurance services. The Bank offers its customers a range of products, such as checking accounts, negotiable order of withdrawal (NOW) accounts, money market and savings accounts, time certificates of deposit, commercial, installment, commercial real estate and residential real estate mortgage loans, debit cards, and safe deposit rental facilities. The Bank provides services through its walk-in offices, automated teller machines (ATMs), drive-in facilities, and Internet and telephone banking. The Bank also offers non-deposit investment products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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HYATT HOTELS CORPORATION (H) is a mid-cap growth stock in the Hotels & Motels industry. The rating according to our strategy based on Peter Lynch changed from 74% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Hyatt Hotels Corporation is a global hospitality company. The Company develops, owns, operates, manages, franchises, licenses or provides services to a portfolio of properties. The Company operates through four segments: owned and leased hotels; Americas management and franchising (Americas); ASPAC management and franchising (ASPAC), and EAME/SW Asia management and franchising (EAME/SW Asia). The owned and leased hotels segment consists of its owned and leased full service and select service hotels. The Americas segment consists of its management and franchising of properties located in the United States, Latin America, Canada and the Caribbean. The ASPAC segment consists of its management and franchising of properties located in Southeast Asia, as well as China, Australia, South Korea, Japan and Micronesia. The EAME/SW Asia segment consists of its management and franchising of properties located in Europe, Africa, the Middle East, India, Central Asia and Nepal.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
FABRINET (FN) is a mid-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Fabrinet provides optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (OEMs) of products, such as optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. The Company offers a range of optical and electro-mechanical capabilities across the manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and test. The Company's customer base includes companies in industries that require precision manufacturing capabilities, such as optical communications, industrial lasers, automotive, medical and sensors. Its customers in these industries support end-markets, including automotive, biotechnology, communications, materials processing, medical devices, metrology and semiconductor processing.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GOLDMAN SACHS GROUP INC (GS) is a large-cap value stock in the Investment Services industry. The rating according to our strategy based on Peter Lynch changed from 63% to 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Goldman Sachs Group, Inc. is an investment banking, securities and investment management company that provides a range of financial services to corporations, financial institutions, governments and individuals. The Company operates in four business segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment consists of financial advisory and underwriting. The Institutional Client Services segment makes markets and facilitates client transactions in fixed income, equity, currency and commodity products. The investing and lending activities, which are typically longer-term, include its investing and relationship lending activities across various asset classes, primarily debt securities and loans, public and private equity securities, infrastructure and real estate. The Investment Management segment provides investment and wealth advisory services. As of December 2016, it had offices in over 30 countries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: FAIL
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WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) is a mid-cap value stock in the Advertising industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: White Mountains Insurance Group, Ltd. is a holding company. The Company's principal businesses are conducted through its insurance subsidiaries and other affiliates. Its segments include HG Global/BAM and Other Operations. The HG Global/BAM segment consists of the operations of HG Global Ltd. (HG Global) and Build America Mutual Assurance Company (BAM). The Other Operations segment consists of the Company and its intermediate holding companies, its investment management subsidiary, White Mountains Advisors LLC, and certain consolidated and unconsolidated private capital investments.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
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ROYAL BANK OF CANADA (RY) is a large-cap value stock in the S&Ls/Savings Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Royal Bank of Canada is a diversified financial services company. The Company provides personal and commercial banking, wealth management services, insurance, investor services and capital markets products and services on a global basis. The Company serves personal, business, public sector and institutional clients in Canada, the United States and approximately 34 other countries. The Company's business segments include Personal and Commercial Banking, Wealth Management, Insurance, Investor and Treasury Services, Capital Markets, and Corporate Support. The Company, through its segments, serves various lines of businesses, which include Personal Financial Services, Business Financial Services, Cards and Payment Solutions, Caribbean and United States Banking, Canadian Wealth Management, United States and International Wealth Management, Global Asset Management, Canadian Insurance, International Insurance, Corporate and Investment Banking, Global Markets and Other.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
FIRSTENERGY CORP. (FE) is a large-cap growth stock in the Electric Utilities industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: FirstEnergy Corp. is a holding company. The Company is engaged in holding, directly or indirectly, all of the outstanding equity of its principal subsidiaries. Its segments include Regulated Distribution, Regulated Transmission, Competitive Energy Services (CES) and Corporate/Other. As of December 31, 2016, the Regulated Distribution segment distributed electricity through the Company's 10 utility operating companies, serving approximately six million customers, and purchased power for its provider of last resort (POLR), standard offer service (SOS), standard offer service (SSO) and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland. The Regulated Transmission segment transmits electricity through transmission facilities owned and operated by American Transmission Systems, Incorporated (ATSI) and Trans-Allegheny Interstate Line Company (TrAIL). The CES segment primarily supplies electricity to end use customers through retail and wholesale arrangements.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: FAIL
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
OSI SYSTEMS, INC. (OSIS) is a small-cap growth stock in the Scientific & Technical Instr. industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: OSI Systems, Inc., through its subsidiaries, is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. The Company sells its products and provides related services in diversified markets, including homeland security, healthcare, defense and aerospace. The Company operates in three segments, which include Security, which provides security and inspection systems, turnkey security screening solutions and related services; Healthcare, which provides patient monitoring, diagnostic cardiology, anesthesia delivery and ventilation systems and defibrillators, and Optoelectronics and Manufacturing, which provides electronic components and electronic manufacturing services for the Security and Healthcare divisions, as well as to external original equipment manufacturer (OEM) customers and end users for applications in the defense, aerospace, medical and industrial markets, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
BANK OF NOVA SCOTIA (BNS) is a large-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Bank of Nova Scotia is an international bank and a financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific. The Bank offers a range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. Its segments include Canadian Banking, which provides a suite of financial advice and banking solutions to retail, small business, commercial and wealth management customers in Canada; International Banking, which provides a range of financial products, solutions and advice to retail and commercial customers in select regions outside of Canada; Global Banking and Markets, which provides corporate banking, investment banking, capital markets and transaction banking solutions, and Other, which represents smaller operating segments, including Group Treasury.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SALES: PASS
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GERDAU SA (ADR) (GGB) is a mid-cap growth stock in the Iron & Steel industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Gerdau S.A. (Gerdau) is a manufacturer of long steel in the North and South America. The Company is engaged in the production and commercialization of steel products in general, through its mills located in Argentina, Brazil, Canada, Chile, Colombia, Spain, the United States, Guatemala, India, Mexico, Peru, the Dominican Republic, Uruguay and Venezuela. Its segments are Brazil Operations, which includes operations of steel and iron ore in Brazil, except Special Steels, and the operation of metallurgical coal and coke in Colombia; North America Operations, which includes all operations in North America, except those of Mexico and Special Steels; South America Operations, which includes operations in South America, except Brazil and the operation of metallurgical coal and coke in Colombia, and Special Steel Operations, including special steel operations in Brazil, Spain, the United States and India. It supplies its customers a range of products, including iron ore semi-finished products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
SMITH & NEPHEW PLC (ADR) (SNN) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Smith & Nephew plc is a medical technology company. The Company is engaged in developing, manufacturing, marketing and selling medical devices and services. Its products and services include Sports Medicine Joint Repair, Arthroscopic Enabling Technologies (AET), Trauma & Extremities, Other Surgical Businesses, Knee Implants, Hip Implants, Advanced Wound Care, Advanced Wound Bioactives and Advanced Wound Devices. The Sports Medicine Joint Repair franchise offers surgeons a range of instruments, technologies and implants necessary to perform minimally invasive surgery of the joints, including the repair of soft tissue injuries and degenerative conditions of the knee, hip and shoulder. The AET franchise offers an array of minimally invasive surgery-enabling systems and devices. The Trauma & Extremities franchise supports healthcare professionals with solutions used by surgeons to stabilize severe fractures, correct bone deformities, treat arthritis and heal soft tissue complications.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
SUN LIFE FINANCIAL INC (SLF) is a large-cap value stock in the Insurance (Life) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Sun Life Financial Inc. is the holding company of Sun Life Assurance Company of Canada. The Company is a financial services company providing a range of insurance, wealth and asset management solutions to individuals and corporate Clients. It operates through five segments. The Sun Life Financial Canada segment provides retail insurance andinvestment advice products and services to people across Canada. The SLF U.S. segment has three business units: Group Benefits, International and In-force Management. Its Sun Life Financial Asset Management segment consists of MFS Investment Management and Sun Life Investment Management. The SLF Asia segment operates through subsidiaries in the Philippines, Hong Kong, Indonesia and Vietnam, as well as through joint ventures and associates with local partners in the Philippines, India, China and Malaysia. Its Corporate segment includes SLF U.K. and Corporate Support. Corporate Support operations consist of its Run-off reinsurance business.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
POSCO (ADR) (PKX) is a large-cap growth stock in the Iron & Steel industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: POSCO is a Korea-based company principally engaged in the manufacture and distribution of steel products. The Company operates in four segments: steel, trading, construction, and others. The steel segment includes production of steel products and sale of such products. The trading segment consists of global trading activities of POSCO Daewoo Corporation, exporting and importing a range of steel products that are both obtained from and supplied to it, as well as between other suppliers and purchasers in Korea and overseas. The construction segment includes planning, designing and construction of industrial plants, civil engineering projects, and commercial and residential buildings, both in Korea and overseas. The others segment includes power generation, liquefied natural gas (LNG) logistics, and network and system integration.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
DENNY'S CORP (DENN) is a small-cap value stock in the Restaurants industry. The rating according to our strategy based on Peter Lynch changed from 56% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Denny's Corporation (Denny's), incorporated on September 29, 1988, operates a franchised full-service restaurant chain. The Company, through its subsidiary, Denny's, Inc., owns and operates the Denny's brand. Denny's brand consists of approximately 1,706 restaurants, which includes franchised/licensed restaurants and company operated. In addition to its breakfast-all-day items, Denny's offers a selection of lunch and dinner items including burgers, sandwiches, salads and skillet entres. It also offers assortment of beverages, appetizers and desserts. It also offers items for children and seniors. The Company's purchasing department administers programs enables procurement of food and non-food products. Its franchisees also purchase food and non-food products directly from its vendors under these programs. The Company's restaurants are operated in the District of Columbia, United States territories, California, Texas, and Florida.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Peter Lynch has returned 420.89% vs. 240.63% for the S&P 500. For more details on this strategy, click here
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. As of December 31, 2016, Southwest operated a total of 723 Boeing 737 aircraft and served 101 destinations in 40 states, the District of Columbia, the Commonwealth of Puerto Rico, and eight near-international countries: Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, and Cuba. Company Description: Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The Company's segments include North American Furniture Solutions, which includes the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, across the United States and Canada; EMEA, Latin America, and Asia Pacific (ELA) Furniture Solutions, which includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the Europe, Middle East and Africa (EMEA), Latin America and Asia-Pacific geographic regions, among others; Specialty segment, which includes the design, manufacture and sale of furniture products and textiles, and Consumer segment, which includes the sale of modern design furnishings and accessories to third-party retail distributors. Its segments include Canadian Banking, which provides a suite of financial advice and banking solutions to retail, small business, commercial and wealth management customers in Canada; International Banking, which provides a range of financial products, solutions and advice to retail and commercial customers in select regions outside of Canada; Global Banking and Markets, which provides corporate banking, investment banking, capital markets and transaction banking solutions, and Other, which represents smaller operating segments, including Group Treasury. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The Company's segments include North American Furniture Solutions, which includes the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, across the United States and Canada; EMEA, Latin America, and Asia Pacific (ELA) Furniture Solutions, which includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the Europe, Middle East and Africa (EMEA), Latin America and Asia-Pacific geographic regions, among others; Specialty segment, which includes the design, manufacture and sale of furniture products and textiles, and Consumer segment, which includes the sale of modern design furnishings and accessories to third-party retail distributors. The Company, through its segments, serves various lines of businesses, which include Personal Financial Services, Business Financial Services, Cards and Payment Solutions, Caribbean and United States Banking, Canadian Wealth Management, United States and International Wealth Management, Global Asset Management, Canadian Insurance, International Insurance, Corporate and Investment Banking, Global Markets and Other. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The Company has three segments. The Company operates in three business segments. |
35440.0 | 2020-02-06 00:00:00 UTC | Strategy To YieldBoost Arcosa From 0.4% To 15.1% Using Options | ACA | https://www.nasdaq.com/articles/strategy-to-yieldboost-arcosa-from-0.4-to-15.1-using-options-2020-02-06 | nan | nan | Shareholders of Arcosa Inc (Symbol: ACA) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the May covered call at the $50 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 14.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Any upside above $50 would be lost if the stock rises there and is called away, but ACA shares would have to advance 7.8% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 11.8% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Arcosa Inc, looking at the dividend history chart for ACA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.4% annualized dividend yield.
Below is a chart showing ACA's trailing twelve month trading history, with the $50 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the May covered call at the $50 strike gives good reward for the risk of having given away the upside beyond $50. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Arcosa Inc (considering the last 252 trading day closing values as well as today's price of $46.43) to be 35%. For other call options contract ideas at the various different available expirations, visit the ACA Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Thursday, the put volume among S&P 500 components was 1.42M contracts, with call volume at 2.74M, for a put:call ratio of 0.52 so far for the day. Compared to the long-term median put:call ratio of .65, that represents very high call volume relative to puts; in other words, buyers are preferring calls in options trading so far today. Find out which 15 call and put options traders are talking about today.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a chart showing ACA's trailing twelve month trading history, with the $50 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the May covered call at the $50 strike gives good reward for the risk of having given away the upside beyond $50. Shareholders of Arcosa Inc (Symbol: ACA) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the May covered call at the $50 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 14.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Any upside above $50 would be lost if the stock rises there and is called away, but ACA shares would have to advance 7.8% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 11.8% return from this trading level, in addition to any dividends collected before the stock was called. | Shareholders of Arcosa Inc (Symbol: ACA) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the May covered call at the $50 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 14.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Any upside above $50 would be lost if the stock rises there and is called away, but ACA shares would have to advance 7.8% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 11.8% return from this trading level, in addition to any dividends collected before the stock was called. Below is a chart showing ACA's trailing twelve month trading history, with the $50 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the May covered call at the $50 strike gives good reward for the risk of having given away the upside beyond $50. | Shareholders of Arcosa Inc (Symbol: ACA) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the May covered call at the $50 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 14.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Any upside above $50 would be lost if the stock rises there and is called away, but ACA shares would have to advance 7.8% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 11.8% return from this trading level, in addition to any dividends collected before the stock was called. In the case of Arcosa Inc, looking at the dividend history chart for ACA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.4% annualized dividend yield. | Shareholders of Arcosa Inc (Symbol: ACA) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the May covered call at the $50 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 14.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Below is a chart showing ACA's trailing twelve month trading history, with the $50 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the May covered call at the $50 strike gives good reward for the risk of having given away the upside beyond $50. For other call options contract ideas at the various different available expirations, visit the ACA Stock Options page of StockOptionsChannel.com. |
35441.0 | 2019-12-06 00:00:00 UTC | Did Arcosa (ACA) Catch Your Eye? | ACA | https://www.nasdaq.com/articles/did-arcosa-aca-catch-your-eye-2019-12-06 | nan | nan | (RTTNews) - Shares of Arcosa Inc. (ACA) are up 43 percent year-to-date.
Arcosa is a provider of infrastructure-related products and solutions catering to the construction, energy and transportation markets. The Company, which separated from Trinity Industries Inc., celebrated its one year anniversary as a public company on November 1, 2019.
Significant progress on a number of key strategic initiatives was made in the fourth quarter of 2018, the Company's first as an independent, publicly-held company, setting the stage for a return to growth in 2019.
The Company has been able to successfully implement lean manufacturing initiatives, and acquisition strategy this year, resulting in considerable revenue and profit growth.
For the third quarter ended September 30, 2019, the results of which were announced in October, the adjusted net income increased to $33 million or $0.68 per share from $24.5 million or $0.51 per share in the year-ago quarter. Revenue in the recent third quarter soared to $115.9 million from $72.6 million in the year-earlier period.
Looking ahead to full-year 2019, Arcosa expects revenue to be in the range of $1.75 billion to $1.80 billion. Revenue in 2018 was $1.46 billion.
As of September 30, 2019, cash and cash equivalents totaled $127.5 million. Combined with unused capacity under its credit facility, the available liquidly amounts to $388.8 million.
The Company also pays a regular quarterly cash dividend of $0.05 per share on its $0.01 par value common stock. The quarterly cash dividend is payable January 31, 2020 to stockholders of record as of January 15, 2020.
ACA has traded in a range of $22.94 to $40.29 in the last 1 year. The stock closed Thursday's trading at $39.31, up 1.34%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Shares of Arcosa Inc. (ACA) are up 43 percent year-to-date. ACA has traded in a range of $22.94 to $40.29 in the last 1 year. Arcosa is a provider of infrastructure-related products and solutions catering to the construction, energy and transportation markets. | (RTTNews) - Shares of Arcosa Inc. (ACA) are up 43 percent year-to-date. ACA has traded in a range of $22.94 to $40.29 in the last 1 year. As of September 30, 2019, cash and cash equivalents totaled $127.5 million. | (RTTNews) - Shares of Arcosa Inc. (ACA) are up 43 percent year-to-date. ACA has traded in a range of $22.94 to $40.29 in the last 1 year. For the third quarter ended September 30, 2019, the results of which were announced in October, the adjusted net income increased to $33 million or $0.68 per share from $24.5 million or $0.51 per share in the year-ago quarter. | ACA has traded in a range of $22.94 to $40.29 in the last 1 year. (RTTNews) - Shares of Arcosa Inc. (ACA) are up 43 percent year-to-date. For the third quarter ended September 30, 2019, the results of which were announced in October, the adjusted net income increased to $33 million or $0.68 per share from $24.5 million or $0.51 per share in the year-ago quarter. |
35442.0 | 2019-10-09 00:00:00 UTC | Ex-Dividend Reminder: Arcosa, Watsco and Freeport-McMoran Copper & Gold | ACA | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-arcosa-watsco-and-freeport-mcmoran-copper-gold-2019-10-09 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 10/11/19, Arcosa Inc (Symbol: ACA), Watsco Inc. (Symbol: WSO), and Freeport-McMoran Copper & Gold (Symbol: FCX) will all trade ex-dividend for their respective upcoming dividends. Arcosa Inc will pay its quarterly dividend of $0.05 on 10/31/19, Watsco Inc. will pay its quarterly dividend of $1.60 on 10/31/19, and Freeport-McMoran Copper & Gold will pay its quarterly dividend of $0.05 on 11/1/19. As a percentage of ACA's recent stock price of $32.99, this dividend works out to approximately 0.15%, so look for shares of Arcosa Inc to trade 0.15% lower — all else being equal — when ACA shares open for trading on 10/11/19. Similarly, investors should look for WSO to open 0.96% lower in price and for FCX to open 0.58% lower, all else being equal.
Below are dividend history charts for ACA, WSO, and FCX, showing historical dividends prior to the most recent ones declared.
Arcosa Inc (Symbol: ACA): | Looking at the universe of stocks we cover at Dividend Channel, on 10/11/19, Arcosa Inc (Symbol: ACA), Watsco Inc. (Symbol: WSO), and Freeport-McMoran Copper & Gold (Symbol: FCX) will all trade ex-dividend for their respective upcoming dividends. As a percentage of ACA's recent stock price of $32.99, this dividend works out to approximately 0.15%, so look for shares of Arcosa Inc to trade 0.15% lower — all else being equal — when ACA shares open for trading on 10/11/19. Below are dividend history charts for ACA, WSO, and FCX, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 10/11/19, Arcosa Inc (Symbol: ACA), Watsco Inc. (Symbol: WSO), and Freeport-McMoran Copper & Gold (Symbol: FCX) will all trade ex-dividend for their respective upcoming dividends. As a percentage of ACA's recent stock price of $32.99, this dividend works out to approximately 0.15%, so look for shares of Arcosa Inc to trade 0.15% lower — all else being equal — when ACA shares open for trading on 10/11/19. Below are dividend history charts for ACA, WSO, and FCX, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 10/11/19, Arcosa Inc (Symbol: ACA), Watsco Inc. (Symbol: WSO), and Freeport-McMoran Copper & Gold (Symbol: FCX) will all trade ex-dividend for their respective upcoming dividends. As a percentage of ACA's recent stock price of $32.99, this dividend works out to approximately 0.15%, so look for shares of Arcosa Inc to trade 0.15% lower — all else being equal — when ACA shares open for trading on 10/11/19. Below are dividend history charts for ACA, WSO, and FCX, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 10/11/19, Arcosa Inc (Symbol: ACA), Watsco Inc. (Symbol: WSO), and Freeport-McMoran Copper & Gold (Symbol: FCX) will all trade ex-dividend for their respective upcoming dividends. As a percentage of ACA's recent stock price of $32.99, this dividend works out to approximately 0.15%, so look for shares of Arcosa Inc to trade 0.15% lower — all else being equal — when ACA shares open for trading on 10/11/19. Below are dividend history charts for ACA, WSO, and FCX, showing historical dividends prior to the most recent ones declared. |
35443.0 | 2019-10-08 00:00:00 UTC | Arcosa Breaks Below 200-Day Moving Average - Notable for ACA | ACA | https://www.nasdaq.com/articles/arcosa-breaks-below-200-day-moving-average-notable-for-aca-2019-10-08 | nan | nan | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $32.91, changing hands as low as $32.70 per share. Arcosa Inc shares are currently trading off about 1.6% on the day. The chart below shows the one year performance of ACA shares, versus its 200 day moving average:
Looking at the chart above, ACA's low point in its 52 week range is $21 per share, with $39.74 as the 52 week high point — that compares with a last trade of $32.80.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $32.91, changing hands as low as $32.70 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $21 per share, with $39.74 as the 52 week high point — that compares with a last trade of $32.80. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $32.91, changing hands as low as $32.70 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $21 per share, with $39.74 as the 52 week high point — that compares with a last trade of $32.80. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $32.91, changing hands as low as $32.70 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $21 per share, with $39.74 as the 52 week high point — that compares with a last trade of $32.80. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Arcosa Inc (Symbol: ACA) crossed below their 200 day moving average of $32.91, changing hands as low as $32.70 per share. The chart below shows the one year performance of ACA shares, versus its 200 day moving average: Looking at the chart above, ACA's low point in its 52 week range is $21 per share, with $39.74 as the 52 week high point — that compares with a last trade of $32.80. Arcosa Inc shares are currently trading off about 1.6% on the day. |
35444.0 | 2019-08-15 00:00:00 UTC | Arcosa, Inc (ACA) Q2 2019 Earnings Call Transcript | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-q2-2019-earnings-call-transcript-2019-08-15 | nan | nan | Image source: The Motley Fool.
Arcosa, Inc (NYSE: ACA)
Q2 2019 Earnings Call
Aug. 02, 2019, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen. And welcome to the Arcosa Inc. Second Quarter 2019 Earnings Conference Call. My name is Bree, and I'll be your conference coordinator today. As a reminder, today's call is being recorded.
I would now like to turn the call over to your host, Gail Peck, SVP Finance and Treasurer for Arcosa. Please go ahead.
Gail M. Peck -- Senior Vice President of Finance and Treasurer
Good morning, everyone. Thank you for joining our Second Quarter 2019 Earnings Call. With me today are Antonio Carrillo, President and CEO; and Scott Beasley, CFO. A question-and-answer session will follow their prepared remarks. A copy of the yesterday's press release and a slide presentation for this morning's call are posted at our website, www.arcosa.com. You can access the presentation by going to the Events tab under the Investors section of the website. A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website.
Today's comments and presentation slides contain financial measures that have not been prepared in accordance with generally accepted accounting principles. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation. Let me also remind you that today's conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the Company's SEC filings including its Form 10-K for more information on these risks and uncertainties.
I would now like to turn the call over to Antonio.
Antonio Carrillo -- President, Chief Executive Officer and Director
Thank you, Gail. Good morning, and thank you for joining today's call to discuss Arcosa's second quarter results and our business outlook. We are pleased to report our strong second quarter and first half results, which exceeded our initial financial forecasts and have positioned us to raise our guidance for full year 2019. The overall business climate has remained positive for our three business segments, which serve diversified end markets within the infrastructure sector. Our business model provides us with significant growth opportunities as well as the resiliency associated with our broad portfolio of products and solutions.
Please turn to slide 4. We had a number of successes in the second quarter advancing on both our Stage 1 priorities and other key operational initiatives. First and foremost, we posted 38% adjusted EBITDA growth on a 23% revenue increase. With all three business segments contributing to this strong performance. While there were some core specific factors, such as wet weather on the negative side and increased throughput allowing for additional orders to be produced in Energy Equipment on the positive side, on balance our results reflected organic growth, the benefit of our December 2018 acquisition of ACG Materials and operating margin improvements in several key areas of the business. Based on first half results and our current visibility, as outlined in the press release, we are raising our 2019 adjusted EBITDA guidance 7% at the midpoint.
In the second quarter, we completed two bolt-on acquisitions that are aligned with our stated objectives. One in the Aggregate business and one in the Marine Components business. Both transactions are good examples of what we're looking for. The acquisitions fit well into the existing portfolio. They bring immediate synergies while broadening our geographic footprint. They add complementary product lines. They reduce the overall cyclicality and they were completed for attractive price. While these two acquisitions were small, representing an aggregate cash consideration of roughly $23 million, our pipeline remains robust.
We expect to complete one or more deals between now and the end of the year, taking advantage of the growth platform we can offer smaller producers of aggregates on specialty products. Importantly, we remain disciplined in our M&A approach. We will continue to look for small bolt-on acquisitions, but will also pursue larger opportunities when available at reasonable prices to advance our long-term strategy. Finally, we continue to work hard on ESG, which is top of mind for Arcosa. We completed an important materiality assessment in the second quarter to identify the ESG topics that will be integrated into the long-term strategy. I will provide additional color on this at the end of the call.
To sum up, we have been actively addressing the near-term strategic priorities that we have reiterated in all investor meetings. Namely, growing the Construction Products business, improving margins in Energy Equipment and capitalizing on the cyclical recovery in our Transportation group. Supporting those operational objectives have been our commitment to operate a lean, flat organization.
Please turn to slide 5. Here we have an overview of second quarter results. As I mentioned earlier, revenues increased 23% companywide. We also benefit from margin improvement and operating leverage as evidenced by adjusted EBITDA growth of 38% and net income growth of 41%, both significantly outpacing revenue growth.
I will now turn the call over to Scott Beasley, our CFO, to provide the second quarter financial review. Scott?
Scott C. Beasley -- Chief Financial Officer
Thank you, Antonio, and good morning, everyone. Starting on page 6, I'll walk through the second quarter results for each segment, and then give additional color on our increased guidance. Construction Products performed well, despite challenging weather conditions in Texas, Oklahoma and California. Revenues increased 38% to $115.6 million. Segment EBITDA of $26.5 million was $3.8 million higher than last year. This segment EBITDA margin of 23% reflects the strong geographic and competitive advantages of our Construction Products businesses.
As expected, our second quarter margin was lower than last year. Two main factors contributed to the decline. First, as we have discussed on the last several calls, while ACG margins are accretive to our overall business, they are lower than our legacy segment margins. Additionally, ACG's operations in Oklahoma were negatively impacted by heavy rainfall, which lowered their margins from historical levels. Second, volumes in our legacy aggregates business were lower as the Dallas-Fort Worth market lost a higher number of days to weather than normal.
When weather has been clear, customers have been purchasing at more normalized levels. So we're confident that the fundamentals of the market remained strong. Pricing was modestly lower, but volume was the bigger driver. In our other two businesses, Specialty Lightweight Aggregates and Construction Site Support, EBITDA improved slightly in each business, demonstrating the strength of our broad-based exposure to infrastructure end markets. Overall, we continue to be pleased with our performance at Construction Products and are actively looking for additional ways to grow the business organically and through disciplined acquisitions.
Please turn to slide 7. Energy Equipment had another very strong quarter of performance, where our team drove organic revenue growth and operating margin improvements. Revenue increased 15% to $204.3 million from a combination of factors. First, unit volumes were higher in our wind towers business as the team did an excellent job ramping up to a higher level of production. Additionally, pricing improved in both our utility structures and storage tank businesses, reflecting healthy demand in these markets.
Utility structures has benefited from increased spending on grid hardening and reliability initiatives across North America. Adjusted EBITDA for this segment was $32.3 million, more than doubling from last year's second quarter. Similar to the revenue growth in this segment, this was driven by a broad base of margin improvement across wind towers, utility structures and storage tanks, our energy equipment team is doing an outstanding job executing on our Stage 1 priority of improving energy equipment margins. Please turn to slide 8. Moving to transportation, revenue increased 26% to $115.3 million as our barge business continues to ramp up to meet increased tank barge demand. Components revenue was roughly flat as higher unit volumes were offset by lower contractual pricing than 2018. Adjusted EBITDA margin of 14.5% improved sequentially from the first quarter's 12.4% but were still lower than last year's margin.
During the quarter, we had $1.3 million of start-up expenses from the reopening of our Louisiana barge facility. Margin was also hampered by the delivery of barges taken in a weak pricing environment in the first half of 2018, which should improve in future quarters. Please turn to slide 9. Given the strength of our first half performance and our continued confidence in our second half outlook, we are raising our adjusted EBITDA guidance by $15 million to $230 million to $240 million. The increase in our guidance is the result of several factors, including faster-than-expected improvement in our Energy Equipment margins, continued confidence in the health of Construction Products markets, including from the ACG acquisition, and a barge ramp up that is progressing well, evidenced by our first barge delivery from Madisonville last week.
The midpoint of our guidance range is 26% above 2018's adjusted EBITDA, and our higher estimate includes a healthy mix of organic growth, the impact of the ACG acquisition and sustained operating margin improvements. Moving to slide 10, I'll recap a few other numbers from the quarter and discuss our expectations for the full year. Capital expenditures were $39 million in the first half, and we reiterate our expectation of $70 million to $80 million for the year, which is a combination of maintenance capex as well as some high-return growth projects to expand capacity at a number of our businesses.
We generated $23 million of cash from working capital in the first half and expect to be roughly working capital neutral for the year. The barge business, in particular, will continue to consume working capital as it ramps up production, but we are working hard to reduce working capital and have incorporated it as an incentive metric for a number of our businesses. Corporate costs were $23.3 million in the first half and we continue to expect roughly $50 million for the full year. Finally, we've raised our cash tax projection slightly on new hire guidance.
Putting those pieces together, you can see the very healthy cash generation from our business, likely in excess of $120 million to $130 million this year. As an update on our balanced capital allocation strategy, we paid a dividend of $0.05 per share in the quarter and allocated $23 million of capital to the growth-focused acquisitions that we discussed. We have $39 million remaining under our $50 million share repurchase program.
I'll now turn the call back over to Antonio.
Antonio Carrillo -- President, Chief Executive Officer and Director
Thank you, Scott. Now I will share with you our outlook on the business conditions in our key markets. Starting with Construction Products, please turn to slide 11. We continue to see strong underlying factors driving growth for the Construction Products segment as the private and public sector spending trends are favorable in our markets. While wet weather constrained our first half results, assuming normal weather conditions prevail, we expect a stronger second half of the year for the Construction segment.
Weather conditions through the end of the second quarter have normalized, and we have seen an increase in volume when weather has been dry, which suggests continuing strong fundamentals. Pricing is another sign of market strength. During the second quarter, even as volumes dropped due to bad weather, pricing remained at healthy levels. As we discussed at the time of the ACG acquisition, in addition to fitting nicely, the business brought along a pipeline of small acquisition candidates that could be bolted on at attractive pricing. We completed one Aggregates acquisition during the quarter of mid-single-digit EBITDA multiple, and we continued to advance a pipeline of attractively priced deals.
So we remain optimistic that we can expand our Construction segment to a healthy combination of organic and inorganic growth while maintaining price discipline. Please turn to slide 12. Moving to Energy Equipment, we continue to make good progress on lean manufacturing initiatives, which have significantly increased our throughput in utility structures business. Bidding activity for utility structures remains healthy and we have seen an increase in grid hardening and reliability spending across the country.
This improvement in activity should provide our business with increased visibility on projects and allow it to continue building momentum in the implementation of the lean programs. In addition to organic growth in our traditional product lines, we see opportunities to expand our portfolio of products organically and through acquisitions into markets that require similar core competencies. Shifting to wind towers, we booked $36 million of new orders in the quarter and now have three different customers in our backlog. These new orders are a good reflection of the new market dynamic we expect after the PTC expires. Smaller, project-driven orders and pricing set by supply demand factors rather than tax incentives just like we experience in every other business.
From the second half of this year, we will have two margin headwinds that we did not have in the first half. First, pricing on the towers we'll produce in the second half will be lower. Additionally, we will have a line change over costs related to the building of different tower types for multiple customers. Together, these headwinds will likely create 200 basis points to 300 basis points of margin headwinds for the segment overall, compared to our normalized margin in the first half of the year. We continue to see strong backlogs in our storage tank business that serves the US and Mexico. We see healthy demand for replacement in the US and continue to actively bid on a number of oil and gas related infrastructure projects in Mexico.
Please turn to slide 13. Our Transportation Products business continues to be a story of ongoing recovery, and we are pleased to announce the delivery of our first barge from our reopened Madisonville facility. I'm extremely proud of our team who was able to turn a building which was empty eight months ago into a vibrant manufacturing plant, which delivered a beautiful barge last week. This type of fast response to cycle is what makes our team special. On the sales side, we booked $32 million of orders during the quarter, and now have a backlog of $350 million.
Roughly, half of that to be delivered in 2020. As a reminder, we'll receive an exceptionally high number of orders for $203 million in the first quarter of this year. While flooding along the Mississippi River contributed to a temporary slowdown in orders, since the start of the third quarter inquiry activity has picked up nicely. We also expect lower steel prices to drive additional dry barge replacement demand. Continued improvement in barge transportation fundamentals, together with barge replacement cycles should drive additional demand for our products.
Also of note, margins on the orders we received in the quarter are higher than those delivered, setting the stage for margin improvement over the next several quarters. As for rail components, while our volumes have held steady, there is potential for a slowdown in volumes in the fourth quarter if the industry backlog for new rail-cars continues to shrink. We will know more about these volume trends in the coming months. Please turn to slide 14. As I mentioned earlier, I would like to update you on an important action under way at Arcosa, progress on our ESG initiatives.
As we mentioned last quarter, we have begun the process of ensuring that we advance environmental, social and governance practices across the organization. We recently completed the first step, a materiality assessment where we identified a set of ESG initiatives that will be integrated into our closest long-term strategy. The second step of this process is to start measuring performance in several of these initiatives in order to set a baseline and internal goals. So this is a long-term project we are committed to. But I'm happy to report that we have started the process and should be able to build forward momentum.
We look forward to discussing our progress on these initiatives in the coming quarters. Please turn to slide 15. I would like to close with a reminder of the long-term plan for Arcosa, which remains unchanged. To grow our business in attractive markets where we can achieve sustainable competitive advantages, to reduce the complexity and cyclicality of the entire portfolio, to improve long-term returns on invested capital and to integrate ESG initiatives into our long-term strategy. The second quarter was an excellent example of making progress in each of these areas toward our long-term goals. We're optimistic about our portfolio, market demand and continued operating improvements.
Operator, I would like to open the call for questions.
Questions and Answers:
Operator
[Operator Instructions] We'll take our first question from Bascome Majors from Susquehanna. Please go ahead.
Bascome Majors -- Susquehanna -- Analyst
Yes, thanks for the update, and congratulations on the results here. Can you guys, first of all, kind of directionally break down the EBITDA increase to 2019 between how much the acquisitions may have added? And what's more organic based on the performance you've had this year?
Scott C. Beasley -- Chief Financial Officer
Sure, Bascome. This is Scott. So the acquisitions really won't have a big impact in 2019. We've talked about $23 million purchase price mid-single-digit multiples, so you're talking about annualized maybe $4 billion to $5 billion of EBITDA contribution, make that a 0.5 year and you're kind of at $2 billion, but in the first year, we've got integration costs and some ramp-up costs. So really not much from the acquisitions this year. The primary increase was both our outperformance in the second quarter and some continued confidence in the second half from where we were a quarter ago.
Bascome Majors -- Susquehanna -- Analyst
That's great news. You -- on the share repurchase plan, you weren't particularly active in the second quarter. Can you talk a little bit about that as a use of capital as you look out versus the big M&A opportunities that you talked about earlier?
Scott C. Beasley -- Chief Financial Officer
Sure. So we've talked about our balanced capital allocation strategy across organic opportunities, acquisitions and return of capital to shareholders. And so if you look in the first half of the year, we spent about $40 million on capex, the $23 million on acquisitions and then for return of capital to shareholders paid $5 million in dividends and then repurchased about $11 million since the authorization of the program in December. So I think we'll continue to try to be balanced. We're really excited this quarter to have been able to deploy capital into the growth acquisitions. But we still have $39 million in the share repurchase program and we'll deploy that when it makes sense.
Bascome Majors -- Susquehanna -- Analyst
Okay. And as we look forward, I mean you gave a lot of comments on the second half, you talked a little bit about the barge backlog and sequential improvement and the profitability of that business as the ramp completes and better pricing rolls through. Any high-level thoughts you can give us on the business as you get out of this year and into next year? You mentioned some potential headwinds in rail related to what's the declining backlog in the industry there for rail-cars. But anything else that we should think about, kind of puts or takes directionally as we think about your business transitioning into next year? Thank you.
Antonio Carrillo -- President, Chief Executive Officer and Director
Sure. This is Antonio, Bascome. So let me give you some thoughts. I mentioned that about half of the backlog we have in barges will be delivered in 2020, and we had a slower order this quarter in barges than the first quarter. The first quarter was incredibly high but -- and this quarter was very complicated for customers. The river system was flooded, and they were basically trying to keep their business going with all those variables moving around them. Since the end of the quarter, I mentioned we continued to see good inquiries for barges, both on the liquid and the dry side, more on the liquid side.
So we are -- and if you look at the barge replacement cycle, both on the dry side and the liquid side, there is -- on the liquid side about 25% of the barges in the fleet are over 20 years old, and we've seen a trend in barges being built -- being, let's say, replaced with shorter periods. So some of the larger companies are replacing their barges at 20 years, rather than 30 years. So you see the fleet, there is, I think, a very, very good indication that the demand for tank barges is going to be good over the next few years.
On the dry cargo side, of course, we know the decline in coal, but also the fleet size and the fleet replacement cycle seems to be a good indicator that there is going to be -- we should expect some additional demand in the future. Also steel prices, I mentioned, should help that demand come through as steel prices peaked a few months ago, close to $1,000, now they're close to $700. So there's, I think, good economic factors that should also help drive the demand for barges. On the rail component side, our -- let me just continue on the barge, also the dynamics in the fundamentals of the shipping industry in the barge, rates have become better. The river system is becoming more efficient as the water recedes. So things are looking better.
On the component side, I mentioned the battles for the rail OEMs have continued to go down. So as those volumes come down, we'll know more in the next few months. Volumes could be -- for our components could be lower. I think the pricing we already -- are having some impact this year and we'll see depending on how those volumes look, how pricing looks for the following years. But overall, we're happy with the way the ramp-up is going on our barge -- in our barge group. We've been able to get the people, we launched our first barge. We are really optimistic of how things are going.
Bascome Majors -- Susquehanna -- Analyst
And could you give us some high-level thoughts on energy? I mean you had a very good margin outcome in the first half of the year, but we're pretty transparent that, that won't be sustainable as you make some changeovers and get into tougher price backlog in the second half. Any high-level thoughts on the trend in the energy business overall as we get into 2020? Thank you.
Antonio Carrillo -- President, Chief Executive Officer and Director
Sure. In my first quarter conference call, I mentioned that the lean implementation had increased our throughput significantly. And one of the reasons we thought we were going to have a lower margin in the second quarter was -- the increased throughput had created some holes in our production schedules in second quarter. So we went out into the bid market. As I mentioned, also there is -- there has been a very good bidding activity in the transmission business, so we were able to fill those holes with good margin orders, and our team has done an incredible job in working through the throughput in those orders. So we were very happy with what's going on in our transmission business.
The headwind comes really on the wind tower side. In the second half of the year, we have some lower pricing coming through our business, and we also sold some additional orders, which are good orders, relatively good margins, but lower margins than the average we have. As I mentioned, we believe that's going to be the market of the future in terms of smaller orders and we have to become good at it. So the second half is going to be kind of our entry into this new market. And it's counterintuitive because we are going into 2020 and -- a strong 2019 to strong 2020 in terms of orders, the wind industry is going install a record amount in 2020. And I'm lowering my forecast for margins.
And that's the reason we launched our antidumping case a few weeks ago against several countries, Canada, Vietnam, Korea, because we believe in fair trade, but we believe in fair competition and that's why, I think, a lot of the margins in the future will depend on not only the demand factor, which seems to be better, if you look at all the forecast in the wind industry they are getting better. But we also need to have a fair competition from the supplier side. So that's one of the things that we are going to be watching how the ITC and the Commerce Department responds to our antidumping case.
Bascome Majors -- Susquehanna -- Analyst
Okay. Last one, is the revenue split between wind towers and utility still fairly even? Or has that started to break in one way or the other? Thank you.
Scott C. Beasley -- Chief Financial Officer
Sure. This is Scott. Yes. It's still roughly even, yes. Depends a bit on the quarter, but still about the same size.
Operator
And our next question will come from Ian Zaffino with Oppenheimer. Please go ahead.
Ian Zaffino -- Oppenheimer -- Analyst
Hi, great quarter. A question would be on the barge side, the pricing. What's the actual real pricing that you're seeing over material costs? Thanks.
Scott C. Beasley -- Chief Financial Officer
Sure. This is Scott. So we're -- we don't disclose direct gross margin. I'd say if you look at the history of the barge business, peak cycle EBITDA margins were roughly in the 20% range. If you look at the bottom of the cycle, the past few years, they were kind of high single-digits, 5% to 7%. So we would expect to see in the third, fourth quarter and then into next year, EBITDA margins come off of that bottom, back up toward higher margins, still not at a peak yet. Peak margins occurred when the business was doing probably $650 million of revenue, with all the plants very full. We're not even back close to a peak-type level. So you're talking about coming off the lower margins headed toward a higher one but still not there.
Ian Zaffino -- Oppenheimer -- Analyst
Okay. And then on the dry side, is there a particular price level for steel where the customers will kind of hit the bid? And also maybe give us an idea of what the sensitivity is of every $100 per ton change. What is that change kind of the selling price of the barge? I'm trying to understand what the impact would be to the customer as they decide whether or not to purchase a new barge? Thanks.
Antonio Carrillo -- President, Chief Executive Officer and Director
Ian, this is Antonio. I think it's a combination of two things. Like every customer, it makes -- their numbers and the combination is both the rates and the cost of the barge and make a decent return on their investment. If you look at the rates, they have been very, very low, and they've been coming up. So it's a combination of the cost of the barge and the rates. And that's why I said, I think the fundamentals are moving in the right direction, both of them. And it will depend also on the type of commodity they are moving. I will tell you that the steel price, where it is right now, it's -- I would consider it a good-level steel pricing, if you look at the history for plate.
So and we've seen inquiries pick up in the dry side. If you look at the amount of barges that need to be replaced, there are very high number of barges. If you just make the numbers on our production for -- just our closest production for the last 20 years, we produced probably an average 400 barges a year. Over the last three years, we haven't produced a 100. So also, it's -- this year we're producing very few barges. So I think there is a good case for both sides. On one side, the fundamentals are getting better, on the other side, at some point, someone needs to replace their barges.
Ian Zaffino -- Oppenheimer -- Analyst
Okay, thanks. And then one final question. Scott, how much did ACG add in the quarter?
Scott C. Beasley -- Chief Financial Officer
So we combine that with our legacy businesses, I'd say. We said ACG performed roughly in line with our expectations minus a delta for weather. So if you look at kind of historical $32 million of EBITDA that they did when we bought them, roughly in line with that by quarter minus some weather.
Ian Zaffino -- Oppenheimer -- Analyst
Okay, perfect. Thanks guys. Good quarter.
Operator
Our next question will come from Brent Thielman with D.A. Davidson. Please go ahead.
Brent Thielman -- D.A. Davidson -- Analyst
Great, thanks. Good morning, and great quarter.
Antonio Carrillo -- President, Chief Executive Officer and Director
Thank you.
Scott C. Beasley -- Chief Financial Officer
Thanks Brent.
Brent Thielman -- D.A. Davidson -- Analyst
On the energy business, I want to ask about the pickup and kind of grid hardening, fire restoration activity, I guess. And whether or not that's driving a pickup in pricing in that business. Are you seeing more appealing bid margins, I guess. Are you factoring in some offset to the, obviously, the issues in the wind business from that?
Antonio Carrillo -- President, Chief Executive Officer and Director
Yes. Brent, this is Antonio. And as I said in the second half, where the headwinds we see are really on the wind tower side. If you look at the numbers and the results for transmission business, they're doing really well. As Scott mentioned in his remarks, they're exceeding our expectation for margin improvement that we had last year. Last year, this was a business that was severely underperforming our competitors, and now it's doing much better. We are seeing some increase in the grid, both from, our traditional customers, but also from the bid market, which is where we have not been playing.
So if you look at one of the issues we had in the past, we were basically concentrated on our traditional customers, we were not playing in the market and we were kind of full. As we've increased our throughput, we become more active in -- with new customers, we become more active in the bid market and we see opportunities, as I mentioned, to expand our product line. So I think it's a combination of a good market and the dynamics of the lean implementation we're doing. And the team that we put together, that's doing a great job.
Brent Thielman -- D.A. Davidson -- Analyst
Okay. And then on the construction business. We often hear from the other public participants about sort of the traditional aggregates market. I'd love to get your views in terms of the varying demand pieces on the specialty business, what you're seeing there? And I guess if you can comment on just pricing in general within the business?
Antonio Carrillo -- President, Chief Executive Officer and Director
Yes. So overall I think we share the view of the other participants that the residential market building continues to be strong, the nonresidential continues to be particularly strong. We have a disadvantage that we are more concentrated in certain markets, and we were probably the hardest hit in terms of weather because we have so much of our assets here in Texas and Oklahoma. But at the same time, we're also fortunate that we are in a strong market, this Texas market continues to see strength.
We -- both in terms of public and private spending, but also we have a great position here. And as we -- I said in my remarks, as soon as the dry weather came back, we continued to see strong volumes. On the specialty side, we're really happy to -- what we're seeing in ACG. Scott mentioned we had weather impacts, yes, that was from our traditional aggregates business. But also there is some -- on the specialty products, we have some plasters and some specialty things coming from our gypsum plants that have done extremely well.
We're expanding capacity in ACG, we're doing quite -- capex going on into ACG going forward both in our Western facilities and also in Oklahoma to expand because we are running at capacity some of our plants. Probably the only side that we've seen some volatility in the energy sector, we have some exposure to the Permian and to the Oklahoma basin in terms of energy, that's a little more volatile. But for the rest, we see strength in all of our markets.
Brent Thielman -- D.A. Davidson -- Analyst
It sounds fairly balanced. It's good. I guess my last question. Obviously, you've done a couple of transactions this year, maybe if you could just talk little more broadly about the M&A pipeline? Is it still your expectation to focus on maybe sort of smaller bolt-on transactions or anything potentially larger in that pipeline?
Antonio Carrillo -- President, Chief Executive Officer and Director
Yes. So yes, we see -- we have quite a bit of smaller transactions coming in through our pipeline, and we are disciplined about how we approach them. We are looking at it, some of them fit better than others, and as I've said before, M&A has its own, once you started with it, it takes a life of its own, each one of the transactions, it's unique. But we are also looking at some larger transactions. We've looked at some in the last few quarters. We've been disciplined of our pricing. We're not going to be paying absurd multiples.
If you remember, one of our long-term strategy is to increase our return invested capital. So it's a balance of what's available and what we can buy. We do believe that because of our size still, we can still access some of the smaller acquisitions that move our needle. But there is some potential larger acquisitions, more specifically, in the Specialty Materials side.
Brent Thielman -- D.A. Davidson -- Analyst
Yes, interesting. Thank you for the time.
Antonio Carrillo -- President, Chief Executive Officer and Director
And just to finish up. I also mentioned opportunities on the energy side on expanding our product line, so that's another area we're looking. Those are the two big focus areas, construction and on the transmission expanding our product line.
Brent Thielman -- D.A. Davidson -- Analyst
Thank you.
Operator
Our next question will come from Stefanos Crist with CJS Securities. Please go ahead.
Stefanos Crist -- CJS Securities -- Analyst
Hey guys, congrats on the quarter.
Antonio Carrillo -- President, Chief Executive Officer and Director
Thank you.
Scott C. Beasley -- Chief Financial Officer
Thanks.
Stefanos Crist -- CJS Securities -- Analyst
I want to focus on the third barge plant opening up last week. Do you have a timeline, an expectation for when that should be margin accretive to the segment?
Antonio Carrillo -- President, Chief Executive Officer and Director
Yes. So we launched the first barge last Thursday. There's two barges behind it. We expect it to start becoming accretive probably in the fourth quarter.
Stefanos Crist -- CJS Securities -- Analyst
Okay. Great. And how does this affect capacity? Do you have a ballpark range now at the third plant?
Antonio Carrillo -- President, Chief Executive Officer and Director
Sure. So capacity for barge fabrication. As you know, one of the big competitors shut down last year. So that's why it was important to have this capacity available to be able to show the customers. Capacity for building barges is driven by two things, of course, the facilities, but also labor. And I think our capacity at the moment, even though we're open -- we have the third facility open, we still have capacity and we've been able to hire people. And labor has not been a big issue for us. We've been able to hire the amount of people we need.
So we have, I would say, as Scott mentioned, we are focusing right now, mainly on tank barges, that's what we're building a few hopper barges. But there is still significant amount of capacity that we could increase if needed. What's nice about our position at the moment based on the mix we have is that each one of the three facilities we have is being set up to fabricate the barges that they are very good at making. So we won't be able to -- we won't have to be making different types of barges in each facility. So the setup is nice and the capacity can be expanded relatively easy.
Stefanos Crist -- CJS Securities -- Analyst
All right, Thank you. And just one more quick one. Can you talk about cash flow in the second half? It was very strong in the first half. Maybe quarter-by-quarter.
Scott C. Beasley -- Chief Financial Officer
Sure. Stefanos, this is Scott. So we generated about $75 million of working capital in the first quarter, and then used a portion of that, about $50 million, in the second quarter. Particularly in the barge businesses, we ramp up and build inventory in the third plant. So we've said, we'd expect to use a portion of that working capital and end up kind of roughly working capital neutral for the year. So you take kind of working capital neutral, add our EBITDA, we've talked about our capex and our cash taxes. We should have very healthy free cash flow for the full year and that includes the second half.
Stefanos Crist -- CJS Securities -- Analyst
Thanks guys.
Antonio Carrillo -- President, Chief Executive Officer and Director
Thank you.
Operator
Our next question will come from Blake Hirschman with Stephens. Please go ahead.
Blake Hirschman -- Stephens Inc -- Analyst
Yeah, good morning guys.
Antonio Carrillo -- President, Chief Executive Officer and Director
Good Morning.
Blake Hirschman -- Stephens Inc -- Analyst
I'm not sure some of these might have already been asked, so I'll go ahead and apologize ahead of time. But on the barges piece, I think the previous expectation was that the revenue there would kind of ramp sequentially throughout the year with a more impactful move kind of from 2Q to 3Q versus what was expected at least at the time from 1Q to 2Q. Is that still a fair way to couch your outlook?
Scott C. Beasley -- Chief Financial Officer
Correct, Blake. The revenue will ramp most significantly from two to three because now we have the third plant opening, should ramp a bit from three to four, but the bigger step will be two to three. Margin though, as we said, the third plant will still be kind of EBITDA neutral and Q3 won't be as accretive until Q4. So you may see a bigger margin bump in Q4.
Blake Hirschman -- Stephens Inc -- Analyst
Got it. And I know a lot of these points in time, backlog, book-to-bill, that kind of things can move around a lot quarter-to-quarter, but it looks like backlog and barges slid a little bit quarter-over-quarter for the first time. And over a year, book-to-bill was a little choppy and new awards were a little bit slow. So kind of with all that put together, I mean, is this mainly due to weather? Is it timing-related stuff? Distractions with the new capacity adds? Just trying to kind of connect the dots with the early cycle outlook? And kind of what these metrics are saying, at least as of right now?
Antonio Carrillo -- President, Chief Executive Officer and Director
Yes. If you look historically, the way the orders are, they're normally choppy. So it's -- and we had an incredibly high number of orders in the first quarter. And these things, these barges, especially, the tank barges are a complicated piece of equipment. So there are negotiations, and there's design issues. And so it takes time. Every order takes time to be processed through. I also mentioned the river system have been very complex during these last few quarters in terms of flooding, etc. So customers were focused on just running the business. I mentioned since the close of the second quarter, we have seen activity, let's say, pick up in terms of bidding. When you sit down with our sales team, I think they are pretty confident with what they are seeing in the market in terms of orders out there and the inquiry. So I would say it's a normal market. And we still have $160 million in place for a backlog for 2020. So about half of our backlog is to be delivered in 2020.
Blake Hirschman -- Stephens Inc -- Analyst
Got it. Makes sense. And lastly for me, just a quick clarification on the back half margin headwind commentary. I think you said it was 200 bps to 300 bps or so. Part A being, is that year-over-year? Or is that a headwind first half versus second half? And Part B being, was that across the whole energy segment? Or was that specific to like wind towers or one of the pieces within?
Scott C. Beasley -- Chief Financial Officer
Sure. This is Scott, Blake. The 200 to 300 basis points is really off the normalized first half. So we had the bad debt recovery in the first half that made it a little higher than it would have been otherwise. And we said it's kind of 200 to 300 off the normalization. That's still a good improvement from last year's full year average. If you remember, last year's EBITDA margin in this segment was about 10%. And so even with the headwind of lower pricing and inefficiencies in the second half, we still expect the second half to be better than last year's average. Your second question about where is that headwind coming from? It is primarily the wind towers.
The other businesses seem strong. The markets are strong. Our operational improvement initiatives are going well. So the primary headwind should be in wind towers, although I'll still say it's a good improvement from last year.
Blake Hirschman -- Stephens Inc -- Analyst
I got it. Some what clear. I appreciate it, I'll hop back in queue. Thanks guys.
Antonio Carrillo -- President, Chief Executive Officer and Director
Thanks Blake.
Scott C. Beasley -- Chief Financial Officer
Thank you.
Operator
Our next question will come from Justin Bergner with G. Research. Please go ahead.
Justin Bergner -- G. Research -- Analyst
Good morning Antonio, good morning Scott.
Antonio Carrillo -- President, Chief Executive Officer and Director
Good morning.
Scott C. Beasley -- Chief Financial Officer
Good morning.
Justin Bergner -- G. Research -- Analyst
A very nice quarter.
Antonio Carrillo -- President, Chief Executive Officer and Director
Thank you.
Justin Bergner -- G. Research -- Analyst
A couple of questions here. First off, for the energy margins, I guess, coming out of the first quarter, you said that you expected them to be modestly better than the 10% from last year in the second quarter to the fourth quarter. Obviously, you did something in the order of 15% in the second quarter and are guiding something in the 12% to 13% range for the second half. So I was wondering if all of the strength was being driven by this bid activity. I guess it seems like kind of more of a spot market for you? Or if there are other factors as well that are contributing to that step up?
Antonio Carrillo -- President, Chief Executive Officer and Director
I think it is a -- sometimes these calls and everything is -- they're short to talk about things we're doing, but it's a combination, I would say, of four things. So let me start with wind towers. Wind towers, even though the market environment is uncertain and we have inputs, etc, all those things I already mentioned. The team is doing an incredible job and they have a very mature lean system, but they've been just simply outstanding in the way they have been performing. Every one of our plants is doing an incredible job in throughput, in cost reductions, in running their business and that's why I'm very certain that in normal conditions, we can go head-to-head with any company in the world and be the best-in-class in wind towers.
So very happy with what's going on there. On the transmission side, I mentioned already that the throughput is increasing and that's allowing us to penetrate markets we were not playing at. So it's a combination of volume and new markets. And then we have two businesses we don't talk much about, which is the power business, both in the US and Mexico. I think part of the margins are coming from almost turnaround type businesses. Our Mexico business was losing money last year. It's making money this year and every quarter is looking better. They are doing a great job. They are cutting costs. They are increasing their production.
They are focusing on their market. And the tank business in the US is also healthy and they're doing a very nice job. So I would say the four businesses that we have in this segment are doing really well. The margin headwind we see in the second half is really coming from the wind towers, as I mentioned, because of pricing and some of the learning curve we're going to go through as we build towers for three customers.
Justin Bergner -- G. Research -- Analyst
Thank you, that's very helpful. Shifting to the barge business, two quick ones there. Why are barges beginning to be replaced sooner? And was the pricing on the orders, did that step up occur in the second quarter? Or did you enjoy that as well in the first quarter when you had the large amount of orders?
Antonio Carrillo -- President, Chief Executive Officer and Director
We've been -- with the gradually rising prices, we have seen demand going up. So we started since early in the year and we've been little by little gaining momentum on that. On the tank barges that I mentioned, they're being replaced shorter times. These are some of the larger companies we have been dealing with, barges are very different than rail or some other -- tanks, let's say, where you keep oil. When you have oil being -- oil or other chemicals being moved through the river, if there's a spill or something, there's a bigger environmental impact. And we are seeing from some of our customers a significant focus on safety and improvements being made on the barge design to increase safety, increase the amount of safety features to avoid leakage, etc. And I think that's one of the drivers that's happening in the tank barge. When you see the river system like you saw it in the first half with all the flooding and you see some of the videos of the barge sometimes getting loose, etc, you need a very, very robust safety -- safe barge to handle liquids. So I think that's one of the biggest things happening.
Justin Bergner -- G. Research -- Analyst
Okay. That's helpful. So I assume when they need to make the safety upgrades they replace the barge rather than try and refurbish it for the most part?
Antonio Carrillo -- President, Chief Executive Officer and Director
Yes. Those are the, let's say, anecdotally, the comments we're getting from our customers.
Justin Bergner -- G. Research -- Analyst
Okay. Lastly, I just wanted to clarify one or two numbers. You mentioned the start-up costs in the barge facility in the second quarter. I think that came at me a bit fast. And then the line change for the wind towers, is there sort of a dollar amount that that's going to be a headwind for the second half?
Scott C. Beasley -- Chief Financial Officer
Sure. This is Scott. So the second quarter ramp-up costs in Madisonville we said were $1.3 million. Those kind of lessened over time, even though we're producing revenue there by shipping barges. There's still lower margin as we're ramping up the learning curve. So that's the barge facility. On the wind tower margin headwind, we didn't break out the combination of the pricing, any inefficiencies, but said total would be about 200 basis points to 300 basis points of the margin headwind.
Justin Bergner -- G. Research -- Analyst
Okay. Great. And then the bad debt recovery of $3 million that's in your $230 million to $240 million now, the one -- the bad debt in the first quarter?
Scott C. Beasley -- Chief Financial Officer
Correct.
Justin Bergner -- G. Research -- Analyst
Okay. Thanks for taking my questions.
Antonio Carrillo -- President, Chief Executive Officer and Director
Thank you.
Scott C. Beasley -- Chief Financial Officer
Thanks Justin.
Operator
And there are no further questions at this time. So I'll turn it back to Gail Peck for closing remarks.
Gail M. Peck -- Senior Vice President of Finance and Treasurer
Thank you, Bree. Thank you, everyone, for joining us today. We look forward to speaking with you again next quarter.
Operator
[Operator Closing Remarks]
Duration: 49 minutes
Call participants:
Gail M. Peck -- Senior Vice President of Finance and Treasurer
Antonio Carrillo -- President, Chief Executive Officer and Director
Scott C. Beasley -- Chief Financial Officer
Bascome Majors -- Susquehanna -- Analyst
Ian Zaffino -- Oppenheimer -- Analyst
Brent Thielman -- D.A. Davidson -- Analyst
Stefanos Crist -- CJS Securities -- Analyst
Blake Hirschman -- Stephens Inc -- Analyst
Justin Bergner -- G. Research -- Analyst
More ACA analysis
Transcript powered by AlphaStreet
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, Inc (NYSE: ACA) Q2 2019 Earnings Call Aug. 02, 2019, 8:30 a.m. Davidson -- Analyst Stefanos Crist -- CJS Securities -- Analyst Blake Hirschman -- Stephens Inc -- Analyst Justin Bergner -- G. Research -- Analyst More ACA analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. The midpoint of our guidance range is 26% above 2018's adjusted EBITDA, and our higher estimate includes a healthy mix of organic growth, the impact of the ACG acquisition and sustained operating margin improvements. | Davidson -- Analyst Stefanos Crist -- CJS Securities -- Analyst Blake Hirschman -- Stephens Inc -- Analyst Justin Bergner -- G. Research -- Analyst More ACA analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Arcosa, Inc (NYSE: ACA) Q2 2019 Earnings Call Aug. 02, 2019, 8:30 a.m. While there were some core specific factors, such as wet weather on the negative side and increased throughput allowing for additional orders to be produced in Energy Equipment on the positive side, on balance our results reflected organic growth, the benefit of our December 2018 acquisition of ACG Materials and operating margin improvements in several key areas of the business. | Arcosa, Inc (NYSE: ACA) Q2 2019 Earnings Call Aug. 02, 2019, 8:30 a.m. Davidson -- Analyst Stefanos Crist -- CJS Securities -- Analyst Blake Hirschman -- Stephens Inc -- Analyst Justin Bergner -- G. Research -- Analyst More ACA analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. The increase in our guidance is the result of several factors, including faster-than-expected improvement in our Energy Equipment margins, continued confidence in the health of Construction Products markets, including from the ACG acquisition, and a barge ramp up that is progressing well, evidenced by our first barge delivery from Madisonville last week. | Davidson -- Analyst Stefanos Crist -- CJS Securities -- Analyst Blake Hirschman -- Stephens Inc -- Analyst Justin Bergner -- G. Research -- Analyst More ACA analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Arcosa, Inc (NYSE: ACA) Q2 2019 Earnings Call Aug. 02, 2019, 8:30 a.m. I mentioned that about half of the backlog we have in barges will be delivered in 2020, and we had a slower order this quarter in barges than the first quarter. |
35445.0 | 2019-08-14 00:00:00 UTC | Arcosa is Now Oversold (ACA) | ACA | https://www.nasdaq.com/articles/arcosa-is-now-oversold-aca-2019-08-14 | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 29.1, after changing hands as low as $31.6447 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 40.6. A bullish investor could look at ACA's 29.1 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares:
Looking at the chart above, ACA's low point in its 52 week range is $21 per share, with $39.74 as the 52 week high point — that compares with a last trade of $31.82.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 29.1, after changing hands as low as $31.6447 per share. A bullish investor could look at ACA's 29.1 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $21 per share, with $39.74 as the 52 week high point — that compares with a last trade of $31.82. | A bullish investor could look at ACA's 29.1 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $21 per share, with $39.74 as the 52 week high point — that compares with a last trade of $31.82. In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 29.1, after changing hands as low as $31.6447 per share. | In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 29.1, after changing hands as low as $31.6447 per share. A bullish investor could look at ACA's 29.1 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $21 per share, with $39.74 as the 52 week high point — that compares with a last trade of $31.82. | In trading on Wednesday, shares of Arcosa Inc (Symbol: ACA) entered into oversold territory, hitting an RSI reading of 29.1, after changing hands as low as $31.6447 per share. A bullish investor could look at ACA's 29.1 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACA shares: Looking at the chart above, ACA's low point in its 52 week range is $21 per share, with $39.74 as the 52 week high point — that compares with a last trade of $31.82. |
35446.0 | 2019-08-02 00:00:00 UTC | Analysts Expect AMCA To Hit $31 | ACA | https://www.nasdaq.com/articles/analysts-expect-amca-to-hit-%2431-2019-08-02-0 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Russell 1000 Pure U.S. Revenue ETF (Symbol: AMCA), we found that the implied analyst target price for the ETF based upon its underlying holdings is $31.18 per unit.
With AMCA trading at a recent price near $28.46 per unit, that means that analysts see 9.54% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of AMCA's underlying holdings with notable upside to their analyst target prices are Hilton Grand Vacations Inc (Symbol: HGV), Brighthouse Financial Inc (Symbol: BHF), and Arcosa Inc (Symbol: ACA). Although HGV has traded at a recent price of $28.14/share, the average analyst target is 30.60% higher at $36.75/share. Similarly, BHF has 19.51% upside from the recent share price of $35.77 if the average analyst target price of $42.75/share is reached, and analysts on average are expecting ACA to reach a target price of $42.80/share, which is 19.45% above the recent price of $35.83. Below is a twelve month price history chart comparing the stock performance of HGV, BHF, and ACA:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of HGV, BHF, and ACA: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of AMCA's underlying holdings with notable upside to their analyst target prices are Hilton Grand Vacations Inc (Symbol: HGV), Brighthouse Financial Inc (Symbol: BHF), and Arcosa Inc (Symbol: ACA). Similarly, BHF has 19.51% upside from the recent share price of $35.77 if the average analyst target price of $42.75/share is reached, and analysts on average are expecting ACA to reach a target price of $42.80/share, which is 19.45% above the recent price of $35.83. | Three of AMCA's underlying holdings with notable upside to their analyst target prices are Hilton Grand Vacations Inc (Symbol: HGV), Brighthouse Financial Inc (Symbol: BHF), and Arcosa Inc (Symbol: ACA). Similarly, BHF has 19.51% upside from the recent share price of $35.77 if the average analyst target price of $42.75/share is reached, and analysts on average are expecting ACA to reach a target price of $42.80/share, which is 19.45% above the recent price of $35.83. Below is a twelve month price history chart comparing the stock performance of HGV, BHF, and ACA: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, BHF has 19.51% upside from the recent share price of $35.77 if the average analyst target price of $42.75/share is reached, and analysts on average are expecting ACA to reach a target price of $42.80/share, which is 19.45% above the recent price of $35.83. Below is a twelve month price history chart comparing the stock performance of HGV, BHF, and ACA: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of AMCA's underlying holdings with notable upside to their analyst target prices are Hilton Grand Vacations Inc (Symbol: HGV), Brighthouse Financial Inc (Symbol: BHF), and Arcosa Inc (Symbol: ACA). | Three of AMCA's underlying holdings with notable upside to their analyst target prices are Hilton Grand Vacations Inc (Symbol: HGV), Brighthouse Financial Inc (Symbol: BHF), and Arcosa Inc (Symbol: ACA). Similarly, BHF has 19.51% upside from the recent share price of $35.77 if the average analyst target price of $42.75/share is reached, and analysts on average are expecting ACA to reach a target price of $42.80/share, which is 19.45% above the recent price of $35.83. Below is a twelve month price history chart comparing the stock performance of HGV, BHF, and ACA: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? |
35447.0 | 2019-08-02 00:00:00 UTC | Analysts Expect AMCA To Hit $31 | ACA | https://www.nasdaq.com/articles/analysts-expect-amca-to-hit-%2431-2019-08-02 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Russell 1000 Pure U.S. Revenue ETF (Symbol: AMCA), we found that the implied analyst target price for the ETF based upon its underlying holdings is $31.18 per unit.
With AMCA trading at a recent price near $28.46 per unit, that means that analysts see 9.54% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of AMCA's underlying holdings with notable upside to their analyst target prices are Hilton Grand Vacations Inc (Symbol: HGV), Brighthouse Financial Inc (Symbol: BHF), and Arcosa Inc (Symbol: ACA). Although HGV has traded at a recent price of $28.14/share, the average analyst target is 30.60% higher at $36.75/share. Similarly, BHF has 19.51% upside from the recent share price of $35.77 if the average analyst target price of $42.75/share is reached, and analysts on average are expecting ACA to reach a target price of $42.80/share, which is 19.45% above the recent price of $35.83. Below is a twelve month price history chart comparing the stock performance of HGV, BHF, and ACA:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of HGV, BHF, and ACA: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of AMCA's underlying holdings with notable upside to their analyst target prices are Hilton Grand Vacations Inc (Symbol: HGV), Brighthouse Financial Inc (Symbol: BHF), and Arcosa Inc (Symbol: ACA). Similarly, BHF has 19.51% upside from the recent share price of $35.77 if the average analyst target price of $42.75/share is reached, and analysts on average are expecting ACA to reach a target price of $42.80/share, which is 19.45% above the recent price of $35.83. | Three of AMCA's underlying holdings with notable upside to their analyst target prices are Hilton Grand Vacations Inc (Symbol: HGV), Brighthouse Financial Inc (Symbol: BHF), and Arcosa Inc (Symbol: ACA). Similarly, BHF has 19.51% upside from the recent share price of $35.77 if the average analyst target price of $42.75/share is reached, and analysts on average are expecting ACA to reach a target price of $42.80/share, which is 19.45% above the recent price of $35.83. Below is a twelve month price history chart comparing the stock performance of HGV, BHF, and ACA: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, BHF has 19.51% upside from the recent share price of $35.77 if the average analyst target price of $42.75/share is reached, and analysts on average are expecting ACA to reach a target price of $42.80/share, which is 19.45% above the recent price of $35.83. Below is a twelve month price history chart comparing the stock performance of HGV, BHF, and ACA: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of AMCA's underlying holdings with notable upside to their analyst target prices are Hilton Grand Vacations Inc (Symbol: HGV), Brighthouse Financial Inc (Symbol: BHF), and Arcosa Inc (Symbol: ACA). | Three of AMCA's underlying holdings with notable upside to their analyst target prices are Hilton Grand Vacations Inc (Symbol: HGV), Brighthouse Financial Inc (Symbol: BHF), and Arcosa Inc (Symbol: ACA). Similarly, BHF has 19.51% upside from the recent share price of $35.77 if the average analyst target price of $42.75/share is reached, and analysts on average are expecting ACA to reach a target price of $42.80/share, which is 19.45% above the recent price of $35.83. Below is a twelve month price history chart comparing the stock performance of HGV, BHF, and ACA: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? |
35448.0 | 2019-05-03 00:00:00 UTC | Arcosa, Inc (ACA) Q1 2019 Earnings Call Transcript | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-q1-2019-earnings-call-transcript-2019-05-03 | nan | nan | Image source: The Motley Fool.
Arcosa, Inc (NYSE: ACA)
Q1 2019 Earnings Call
May. 03, 2019, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen, and welcome to Arcosa's First Quarter 2019 Earnings Conference Call. My name is Ashley, and I'll be your conference call coordinator today. As a reminder today's call is being recorded.
Now I would like to turn the call over to your host, Gail Peck, Senior Vice President of Finance and Treasurer for Arcosa. Ms. Peck, you may begin.
Gail M. Peck -- Senior Vice President, Finance and Treasurer
Thank you, Ashley. Good morning, everyone. Thank you for joining our first quarter 2019earnings call With me today are Antonio Carrillo, President and CEO; and Scott Beasley, CFO. A question-and-answer session will follow their prepared remarks. A copy of yesterday's press release and a slide presentation for this morning's call are posted at our website, www.arcosa.com. You can access the presentation by going to the Events tab under the Investors section of the website. A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website.
Today's comments and presentation slides contain financial measures that have not been prepared in accordance with generally accepted accounting principles. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation. Let me also remind you that today's conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the company's SEC filings, including its Form 10-K for more information on these risks and uncertainties.
I would now like to turn the call over to Antonio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Gail. Good morning, everyone. Thank you for participating in today's call to review Arcosa's first quarter results and discuss our business outlook. We are pleased with the way the quarter evolved and see this as a strong start to a year of strong growth for our culture. As you know, our business model has been developed around three primary operating segments. Each comprised of several product lines serving different end markets within the infrastructure sector. This gives us multiple platforms for growth as well as significant resilience to other specific events such as weather, shipment timing, maintenance slowdowns, et cetera, that can impact any of our business lines. Our first quarter performance benefit from having this broad exposure to infrastructure end markets as well as from successful organic projects and the addition of ACG Materials which we acquired in December last year.
Please move to Slide 4, where we list what we consider to be the key strategic highlights for the first quarter. First, our results exceeded our regional expectations specifically on the Energy Equipment segment and provide a strong start to the year. Next, the ACG acquisition is performing to plan, integrating very well into our Construction Products segment and has brought with it potential bolt-on acquisitions that we are currently working on. Also the application of lean manufacturing process in the utility structures unit of our Energy Equipment segment that began late last year is starting to pay off. We saw increased throughput another operating efficiencies that contributed to first quarter EBTIDA growth. And in Transportation Products, we continue to see good demand for liquid barges and while we did see some orders for hopper barges demand remains soft. At the same time, the previously announced production ramp up at our facility is going as planned and position us well to meet customer demand.
To sum up this slide, each of these first quarter strategic highlights is aligned with the near-term priority that we have outlined and have continued to talk about since our Investor Day last October. There is still a lot of runway in each of our business units, but we are pleased with the progress so far and are looking forward to continued improvements in the periods ahead. The actions taken so far together with positive momentum in our markets allowed us to deliver a strong financial quarter which you can see on Slide 5. Our adjusted EBITDA and margin expansion outpaced our revenue growth.
Now I will provide additional operating color on each of our business segments starting with Construction Products Group, on Slide 6, where our priority has been to drive revenue growth at attractive margins. As we look at these segments results, it's important to remember that the ACG acquisition has margins that are higher than Arcosa's overall margin, but lower than the historical Construction Products segments margins contributing to an expected drop in segment margin after the acquisition.
In the first quarter, our legacy aggregates business saw very strong margin performance. On the demand side, activity continues to be healthy and customers remain positive on their outlook. Healthy demand in the Dallas/Fort Worth Area is helping us solve the additional supply that came into the market. In addition, despite the increased supply and high number of bad weather days in the DFW market, our margins have remained at attractive levels. This was also the first full quarter of contribution from our ACG Materials acquisition. We scaled up our Construction segment revenues by approximately 50% on an annualized basis and that is important geographic and then market diversification to the Group. ACG Materials also brought additional specialty materials expertise that we believe will be able to leverage over time to produce more products with elevated barriers to entry. In the first quarter, we continue to invest in organic opportunities to expand the production capacity and geographic reach of several ACG product lines serving the West Coast and Central US markets. This is indicative of the type of support that acquisition candidates can expect from Arcosa for projects that provide high returns on investment.
As we have mentioned before, ACG had developed a robust pipeline of acquisition opportunities prior to the acquisition by Arcosa, complementing the existing pipeline in our legacy businesses. We expect to complete two or three very small bolt-on acquisitions from our pipeline shortly. Given this size, we believe we can execute those transactions at reasonable multiples. Our Construction Site Support operations continue to perform well in the first quarter. Commercial construction activity is a key driver here as well as increasing regulations and they focus on workers' safety.
To sum up Construction, we are pleased with our first quarter performance and expect to see volume and margin improvement as we move into a seasonally stronger second and third quarters. I remain very optimistic about the segments long-term fundamentals and ability to serve as a platform for growth. There are many encouraging drivers that support our positive outlook. On the public side, state and federal funding for infrastructure products -- project in our market particularly highways is robust and demographic trends will continue to require both public and private infrastructure investment. Our positive market outlook is, while growing Construction segment is a priority for Arcosa.
On Slide 7, is a business review of our Energy Equipment Group, where our near-term priority has been margin expansion. This Group was a very strong performance in the first quarter for a number of reasons, but operationally we're starting to see some positive signs related to the rollout of our lean manufacturing process in our utility structure business. Throughput has started to increase as well as our own time delivery. As we continue to improve on our operations at the plants, we will have greater confidence and ability to increase our order intake in a market that's showing healthy demand. Overall, we're happy with the signs of improvement seen to date in our utility structure business and are looking forward to future progress. Our wind tower business will continues to maintain attractive margins and our backlog remains solid providing good visibility into 2020. While we did not book any new wind tower order during the first quarter we're currently quoting orders for 2020. Of course, the plan phased out of the production tax credit has caused uncertainty in the market. As market leaders, we are preparing to operate within an evolving business environment, but we still believe that the industry's long-term fundamentals are sound, even that wind is a competitive energy source on its own. Lastly, our storage tank backlog continued to increase in the first quarter driven by demand from residential, commercial and agricultural customers. Additionally, we are pleased with the progress on the turnaround of our Mexico business.
Finishing up on our Energy Equipment Group, we were pleased to see two actions in April supporting fair trade practices. In the US, the International Trade Commission upheld the anti-dumping and countervailing duties on imports of utility scale wind towers from China and Vietnam. And separately in Mexico, a new investigation against our fair trade practice was initiated against China. As a company, we will continue to vigorously support fair trade practice that discouraged the illegal dumping of products into the North American markets.
Slide 8, provides additional insights on the development of our Transportation Products Group, where our near-term priority has been to expand capacity to capture the emerging ongoing recovery in barges and to build our customer base for railcar components. Scott will touch on some specifics, however, more broadly we see positive trends in the business which are creating solid demand factors for tank barges. In the first quarter, our backlog increased substantially by over 65%. This was an exceptionally high quarter for orders with our book-to-bill to 4:1 that reflected solid demand and the finalization of several large orders that had been in the pipeline for months. The majority of these orders were for liquid barges, but this strong performance included some orders for dry barges as well.
The orders received in the first quarter come from a wide variety of customers and a diverse set of commodities which are signs of our healthy market. On the dry side, we still -- we're still seeing demand below replacement volumes and we still see high steel prices as being one of the limiting factors in this market. The orders received have filled our production schedule for 2019 and we are starting to build our production schedule for 2020. And in railcar components, we continue to get orders and build a relationship with new customers.
At this point, I would like to turn over to our CFO, Scott Beasley, who will provide first quarter financial review.
Scott Beasley -- Chief Financial Officer
Thank you, Antonio, and good morning, everyone. Our first full quarter as a public company served as a strong start to 2019. While it is early in the year, we feel good about our first quarter success and our positioning for the rest of the year. I'll give more color on each segments financial results during the quarter starting with Slide 9. Construction Products performed roughly in line with our expectations. Revenues increased 51% to $106 million. Adjusted EBITDA of $21.5 million was $4 million higher than last year, reflecting a 20.3% margin. Three main factors contributed to the year-over-year margin decline: first, as Antonio discussed annual ACG margins are closer to 20%, which lowered our segment margins but were accretive to our overall Arcosa margins; second, volumes and margins in our legacy aggregates business are still at healthy levels, but we faced some expected volume and pricing headwinds in our DFW market as well as a tough comp from last year; third, product mix and planned maintenance shutdowns in our specialty lightweight aggregates business impacted margins. Volumes improved but the mix shifted to lower margin products. Putting it all together, we are pleased with our first quarter Construction segment margins and expect margins to improve in the seasonally stronger second and third quarters of this year. We see solid progress on our stage one priority of growing construction products in a disciplined way.
Please turn to Slide 10. Energy Equipment had a terrific first quarter, which was a combination of operational improvements and a few special items that we want to point out. Revenues increased 7% to $209 million. Adjusted EBITDA of $35 million was up 39% from last year. The adjusted EBITDA margin of 16.8% was driven by four main factors: continued strong operating performance in our wind terrorist business; early operating improvements in our utility structures business; the divestment of our cryogenic tank and oilfield equipment businesses in the fourth quarter of 2018; and the recovery of $2.9 million and accounts receivable from a canceled utility structures project in Mexico, that was previously written off. Looking forward into Q2 and the rest of the year we're confident in the continued traction of our operating improvements, but the 16.8% margin is unlikely to be repeated as we had the one-time impact on bad debt recovery as well as favorable product mix in our utility structures business. We expect each remaining quarter to be better than last year's full year adjusted EBITDA margin of 10%, but we expect to see more of a small incremental improvement from 10% versus the large step up we had in Q1.
Please turn to Slide 11. Shifting to Transportation, revenue increased 9% year-over-year with adjusted EBITDA of $12.1 million. Adjusted EBITDA margins of 12.4% were lower than the first quarter of 2018, primarily due to the ramp up of our barge business and lower year-over-year pricing in our components business. During the quarter, we had approximately $1.8 million of start-up expenses associated with the reopening of our Madisonville Barge facility as well as roughly two weeks of lost production due to a flood at our Caruthersville, Missouri barge facility. Caruthersville is now fully up and running, and Madisonville is progressing nicely. We plan to deliver our first barge from Madisonville in early Q3. We expect to continue to have production inefficiencies at all three plants as we ramp up production to meet this year's significantly higher level of demand. On the last call, I noted that we expected the barge business to grow 70% to 80% from 2018's revenue of $170 million and we still expect that to be the case. Our Q1 orders solidify our production schedule for 2019 and give us a nice backlog of roughly $120 million in 2020, which is a good start to that year.
Moving to components, the business continues to operate efficiently and make progress on its lean initiatives. We continue to see higher volume from rail products offset by lower margins from our major long-term sales agreement. We booked a number of smaller orders from new customers and continue to make progress on diversifying our customer base in the components business. Finally, corporate costs were $10.5 million for the quarter as we managed expenses tightly. We continue to expect corporate cost to be in the $12 million to $13 million range per quarter for 2019 given new independent public company costs and additional spending as we move away from transition service agreements over the course of 2019.
Shifting to Slide 12, we had a very strong quarter of cash generation. We generated $125 million of operating cash flow during the first quarter with $72 million from a reduction in working capital. You may recall that we had an elevated level of working capital at year-end 2018, due to a mix of factors and we successfully returned to a more normalized level during Q1. As a result. we repaid $80 million on our revolver and ended March with $118 million in cash and $371 million of liquidity between our revolver and cash on hand. We now have net debt of roughly 0, which positions us well to continue growing organically and through disciplined acquisitions.
Turning to guidance on Slide 13, we are reaffirming our revenue guidance of $1.7 billion to $1.8 billion in our adjusted EBITDA guidance of $215 million to $225 million. We also continue to expect a very healthy level of free cash flow in 2019. We continue to expect $70 million to $80 million of CapEx this year. We also expect working capital to be roughly neutral. We had strong working capital generation in the first quarter, but we'll consume a portion of that in our barge ramp up. Finally, we continue to project cash taxes of $15 million to $20 million for the year.
I'll close by covering our capital allocation strategy on Slide 14, where we have three areas of focus; organic investments, disciplined acquisitions and return of capital to our shareholders. On the organic side, we are constantly evaluating growth projects where we can earn an attractive return on investment. As an example we approved and started an expansion at one of ACG's Western plants to enhance capacity and better serve our customers. This CapEx project is an example of the high return organic opportunities that we will continue to pursue with ACG and across all of our businesses. While we did not complete any acquisitions during the quarter, we continue to have an active pipeline and are encouraged by our progress. We repurchased $8 million worth of shares during the first quarter and have $39 million remaining on our authorization. We also used $2.5 million to fund our quarterly dividend in January. We continue to balance capital allocation across these three categories to improve our returns on capital. We are working to improve returns by enhancing cash flow, reducing working capital, making disciplined decisions about CapEx and taking a hard look at underutilized assets.
I will now turn the call back to Antonio for closing remarks.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Scott. In closing, I think there are three takeaways from our first quarter performance. First, we're executing well on the near-term priorities that we said last year as we prepared to enter the public markets. Second, our first quarter results have put us firmly on track to achieve the guidance we provided earlier this year, which represents strong year-over-year growth and substantial operating leverage. And third, we continue to be optimistic about the fundamentals of the general infrastructure markets to which we are broadly exposed. Given our mix of business you may not see a straight line up across each one of our segments and product lines every quarter, but you should see our positive trends that will lead to long-term sustainable growth.
And as we noted on Slide 15, we have a vision for the future that has not changed. It involves growing our businesses in attractive markets where Arcosa can achieve sustainable competitive advantages. Reducing the complexity and cyclicality of the business as a whole, improving the long-term returns on invested capital and integrating ESG initiatives into our long-term strategy and our DNA.
Operator, I would now like to open the call to questions.
Questions and Answers:
Operator
(Operator Instructions) And we'll take our first question from Justin Bergner. Your line is open. Please go ahead.
Justin Bergner -- G. Research -- Analyst
Good morning, Antonio, and good morning, Scott. Congratulations on the start of the year.
Antonio Carrillo -- President and Chief Executive Officer
Thank you.
Justin Bergner -- G. Research -- Analyst
I guess, where I'd like to start is, you know a lot of the strength in the quarter was driven by utility structures. And while you highlighted the margin improvement on the call and that's very good. In the press release I guess, you know, you highlighted the revenue growth and order growth for utility structures. Maybe you could just provide a little bit more detail there and how sort of -- how much visibility do you have in terms of the sustainability of that strength on the demand side?
Antonio Carrillo -- President and Chief Executive Officer
Yeah. So, this is Antonio, Justin. Let me give you a little sense of the markets. I think -- I'm going to be a little broader than just utilities because the quarter was a good quarter, I would say, across-the-board in the Energy group. So on the wind tower side, we mentioned the margins continued to be good. Our business is performing really well. Our lean initiatives have been tremendous and the team is doing a very, very nice job. On the utility structures, we saw a significant progress during the quarter in terms of the lean throughput that we were expecting. I also mentioned in my remarks that, that's helping our on time delivery. So we have significant operational issues in the business that we have to fix. And as I mentioned in my script also, as we fix those things, I'm very confident that the market is showing good signs of -- let's say, of demand. And as we increase our throughput and we'll be able to capture more of those orders. So we have things to do inside before we can expect those, and I think we're on track for that. But when we increase our throughput what happens is, you can wait on your backlog and now we have to go out and sell more. So it's a balancing act as we improve our operations to go into the future and start selling more with more confidence. So, I think we're on the right track and that's why Scott said look I think over the next few quarters our margins will be a little lower than what we did in the first quarter. But we are on the right track and we expect our margins to continue to improve sequentially compared to last year. And the orders were and bidding activity were up compared to last year. So I think the market is healthy and we have work to do internally to be able to perform well. We also mentioned our storage tank and Mexico business both are turning around well and performing better, and we divested two businesses that were not performing last year and were dragging our results down. So, all that combination is what drove the margins up.
Justin Bergner -- G. Research -- Analyst
Okay, great. That's good to hear the full view on the segment. In the barge business, I guess in order to get to 70% revenue growth, I guess the next couple of quarters have to average at least $80 million of revenue per quarter. What's going to sort of drive that ramp just the new plant in part, or are there any -- I guess capacity constraints internal operating constraints to get to that 70% to 80% growth?
Antonio Carrillo -- President and Chief Executive Officer
Yeah, it's -- the new barge plant, as Scott mentioned we plan to launch our first barge early third quarter. So really -- and it's not going to be the main driver. It's the smallest in terms of production from the three plants. So really what we're doing and that's you know one of the reasons why we are focusing a lot on this business is, we have significant ramp ups going on in our other two facilities. We are investing -- and you -- and part of the organic CapEx that you see this quarter being spent, we're spending on a new building in one of the plants. We're also building some new launch ways in that same plant. So what we are trying to do is to increase the throughput in the two facilities, the two large facilities that we have. And at the same time, let's say, invest in our processes so that at the same time while we ramp up we increase our efficiencies. So that's where we're focused. We're confident in our team. They know how to do it. We're not seeing any bottlenecks. The first quarter was kind of special with all this, the flooding of the facility. The river overall had a significant amount of problems in terms of -- that the currents were very hard on and we couldn't launch barges for a few days et cetera. But we're confident that the facilities are performing well and should deliver the production that our customers expect.
Justin Bergner -- G. Research -- Analyst
Great. Thanks for taking my questions.
Operator
We'll take our next question from Craig Bibb with CJS securities. Your line is open.
Stefanos Crist -- CJS Securities -- Analyst
Hey, this is Stefanos Crist calling for Craig. Congrats on the quarter. Could you talk about the improvements in the Energy Equipment margins and just difference between the efficiency gains versus the sale of the low margin businesses?
Scott Beasley -- Chief Financial Officer
Sure. This is Scott, Stefanos. Good to talk to you. So, you know the margin improvement was really a mix of all the four factors that Antonio mentioned; wind towers, utility structures, the divestment of cryogenics and oilfield equipment and then the piece we haven't talked about, talked in the script, was the $2.9 million bad debt recovery from a utility structures project. So, the bad debt recovery was the biggest piece and that's you know a one-time item that we wouldn't anticipate going forward. The other pieces were kind of relatively in line driving margins up. And then the other piece that I talked about in my script that is not necessarily going to be repeated was the favorable product mix and utility structures that you know as we work through our production schedule maybe less favorable in Qs 2 and 3, but those were the four big drivers of the margin improvement.
Stefanos Crist -- CJS Securities -- Analyst
Got it. Thanks. And then just one more quick one. You were clear that most of the backlog for barge was liquid, but can you tell us a little bit more about the dry barge demand?
Antonio Carrillo -- President and Chief Executive Officer
Yes. This is Antonio, Stefanos. Good morning. So, as we said, we do have some orders. There's not a large number. We are seeing improved activity in terms of bidding. There is more customer interest. I think on the dry cargo side I mentioned in my script that there is a high degree of awareness of the steel prices to put it in a way. Our customers are trying to figure out that's what we perceive -- trying to figure out where steel prices are going because it's such a big portion of the cost of a barge. And I think steel prices are still high. It come down some, but it's one of the limiting factors in new barge orders. But we are optimistic that we are seeing some more inquiry, some more bidding activity. As I mentioned in the script, the market is not a building even after replacement volumes that should be happening. So, it's not very robust, but we see some signs on the improvement.
Stefanos Crist -- CJS Securities -- Analyst
All right. That sounds good. Thank you guys and congrats again.
Antonio Carrillo -- President and Chief Executive Officer
Thank you.
Operator
And we'll take our next question from Ian Zaffino with Oppenheimer. Your line is open.
Ian Zaffino -- Oppenheimer -- Analyst
Hi, great. Thank you very much. You know, just turning to the balance sheet obviously net debt is near 0. And you know you gave a good slide about what you want to do with your capital. What I'm kind of looking at here now is, you know the mention that you're going to do more bolt-ons in the business. You know how big are those bolt-ons going to be? I mean, is there an appetite or is there availability to do anything larger than that? I know, that's been something that you've talked about, maybe doing something larger, maybe adding a little debt. So has anything changed as far as that outlook, or you know just give us an idea of what's been going on in the M&A side. Thanks.
Antonio Carrillo -- President and Chief Executive Officer
Yeah. Good morning, Ian. This is Antonio. So -- no, I think nothing has changed. You know, the bolt-ons are relatively small at the moment, and I mentioned what we're looking for and we think that's how ACG was built with small bolt-ons and a good capacity to integrate them and to buy them at reasonable multiples well below when we bought ACG with the idea that we integrate them and we start generating both synergies, but also new products et cetera. So we are excited with the list of companies we're looking at. I think it's a -- it also provides us additional geographic and broad diversity. Before we bought ACG, we were very, very concentrated in the DFW area. We needed some diversification. So nothing has changed. We continue to believe that Construction segment will be the main focus of our M&A. On the larger side, we are open to larger opportunities if we find them. We should not forget that ACG was a large acquisition for us. It was --it grew our revenues by almost 50% on a yearly basis. It has over 20 mines. So it's a significant bite for us. It's integrating very well. It's performing very well. I just need to give our team some time to digest and to do the right thing, but we are open. If we find the right opportunities, we'll -- I think we have the bandwidth and the team to be able to do it.
Stefanos Crist -- CJS Securities -- Analyst
Okay. Thank you very much.
Operator
And we'll take our next question from Bascome Majors with Susquehanna. Your line is open.
Bascome Majors -- Susquehanna -- Analyst
Yeah, thank you. I want to follow up on an earlier question about the cadence of the ramp in your barge business. Directionally speaking, can you give us any sense of the magnitude between 1Q, 2Q, 3Q and 4Q from a revenue perspective?
Scott Beasley -- Chief Financial Officer
Sure, Bascome. This is Scott. Good to talk to you. The ramp up is relatively stable kind of -- well, throughout the rest of the year ramps up each sequential quarter. Q2 will be above Q1. Q3 will probably have a bit bigger bump from Q2, because that's when Madisonville will be producing. And then Q4 probably not as big of a step-change from -- as the previous quarter, because all three will be running, but they'll be running at a higher capacity. So that's a rough magnitude of the way to think of it, but it should increase sequentially each quarter.
Bascome Majors -- Susquehanna -- Analyst
And where you land in 4Q, should we consider that a run rate, or is there still your more capacity in that existing footprint continue to push that higher in the 2020, you know, if demand warrants?
Scott Beasley -- Chief Financial Officer
Sure. There's definitely will be existing capacity in the manufacturing footprint. So, you know, if you think back to peak barge levels that was $650 million of revenue, that was four operating plants, but our goal is to be able to operate potentially the three plants as efficiently as we did four originally. So we definitely have the bandwidth within three plants to ramp up beyond where we'll be in Q4, and then if we need to we can open up our fourth plant. I'll say, you know one of the -- it's still a significant ramp up this year. We're talking 70% to 80%. So our team is doing a great job at the local level hiring with partnerships, with technical colleges and relationships in the community, but you know the 70% to 80% ramp up this year is pretty significant. And then when you look into 2020, we already have $120 million of backlog which is a very good spot to be in, sitting in May right now
Bascome Majors -- Susquehanna -- Analyst
Thank you. And last one on barge. Clearly the margins typically follow the revenue ramp in this type of business as you're adding capacity. Will we start to see a peak of what a more normalized margin should look like in 4Q? Is that really a 2020 kind of event?
Scott Beasley -- Chief Financial Officer
If you're talking about peak margins, you know the peak margins in the marine business were kind of in the 20% range, but that was when the dry and liquid barges were both very strong and all four plants were running at it almost near capacity. So in -- we're not going to be there given where we are now and the dry markets still being soft. So we're not going to be at a peak margin even by Q4 or early in 2020, unless the dry market picks up significantly.
Bascome Majors -- Susquehanna -- Analyst
And you know realizing -- last one for me. Realizing it's May 3rd, 2019, I think it was a great time to ask about 2020. But any, any visibility you have and that any certain items that you'd be willing to talk about for next year as we kind of think about the trajectory of the business mid-term you know whether it -- and clearly barge backlog is one thing that we've already discussed, be it corporate expenses or anything on those lines. Just any high-level thoughts we can think about your business that you're willing to share going out a year?Thank you.
Antonio Carrillo -- President and Chief Executive Officer
Bascome, this is Antonio. Let me give you a little sense of what we are seeing and our expectations, but more importantly, if you look at our exposure to the infrastructure market we're very optimistic about the fundamentals of the markets where we are on the general view of where things are. Starting with construction materials, I think there is -- I mentioned significant public and private spending in our regions. So I think the markets are healthy. So overall we're optimistic about where that's going. On the energy side, we see good demand on transmission. I think all this electrification that's coming around is -- should have positive fundamentals for the transmission business. The wind tower business we are starting to quote some additional things for 2020 and we have a very strong backlog in wind and in barge to start 2020. On the liquid side of the barges, there is a significant amount of petrochemical activity still happening in the Gulf, and a lot of those plants are coming online as we speak. So the fundamentals are there for the liquid barges to continue to move. The oil prices continue to be relatively healthy. And -- so overall, I would say signs are good for our businesses to -- maybe we don't have the backlog for, as you say, the second part of 2020 and we don't have enough visibility. But that's the case, I would say with most of our businesses. We don't live the exception of the wind power for a very long period. We also have the infrastructure build, which we don't know what's going to happen, but we're optimistic that the infrastructure is going to be a priority for this country. So, overall we're optimistic.
Bascome Majors -- Susquehanna -- Analyst
Thank you.
Operator
And we'll take our next question from Zane Karimi with D.A. Davidson. Your line is open.
Zane Karimi -- D.A. Davidson -- Analyst
Good morning. This is Zane in on for Brent. First one, I was kind of hoping for more color on the wind tower markets. Particularly in 2019, and what kind of momentum and activity you're seeing there? And then with regard to the Energy Equipment, kind of just understanding the investments going into improved productivity? And are these areas you will need to invest in to improve the competitiveness of that business or more so to expand your current market share?
Antonio Carrillo -- President and Chief Executive Officer
Yeah, Zane, this is Antonio. Starting with the wind tower question, in the last call and this is something that is evolving and I mentioned it today again. You know this market without the PTC as it ramps down. I think as a company we were very, very -- we're very good at making wind tower. That's first of all one of the things I believe that this company is really good at making these wind towers, which are very complex pieces of equipment that people believe it's only a piece of pipe, but it's a very complex piece of equipment with high tolerances and difficult to make. But overall I would say because we will not have a PTC, we got -- the industry got used to very long-term orders. Now we would get these orders for four years or five years of $1 billion or $600 million. And I think that the industry is changing. It's going to be a much more project oriented industry, similar to most of the industries around. So I think if there is a big project in the Midwest, we'll have to bid for that big project in the West, and if it's in Texas, we'll bid for that. And our plans are very well positioned to take advantage of the high wind areas in the US. So what I'm trying to say, I think, I'm not scared that we don't have the backlog for 2021. I'm very optimistic about the long-term fundamental of the industry. I think that with the change in the way business is going to work without the PTC, we will probably, we some slowdown. But overall, I believe in the fundamentals of wind and the fundamentals of clean energy. I think this world is not going back from that -- those trends. So I'm optimistic about the future of wind. Will we get to more orders? I'm convinced we will get orders for 2020 and 2021 and we'll continue to be a strong player here. On the transmission side, the first thing we have to do to improve our -- let's say numbers is work on our processes rather than investing a lot of money is basically working on our lean process which is more process than any new equipment. As we extract more and more let's say efficiencies from our current equipment and processes probably we'll have to invest, but we don't foresee anything that's a major investment that we need to do in the near future to improve our margins and our throughput. Once we get to a certain capacity then of course we'll think about bigger investments. For the moment, we don't see that happen.
Zane Karimi -- D.A. Davidson -- Analyst
Thank you for that. And then transitioning over to Construction Products there. Can you talk about your strongest markets or regions for construction products where you see the most demand pull from today? And then also your thoughts on a potential diversification from construction products out of the Texas?
Antonio Carrillo -- President and Chief Executive Officer
Yes. So, this Antonio again. Our biggest market continues to be Texas, and we are very strong in the DFW area. We have a good presence in Central Texas and in the Gulf Coast area. Those are the three main regions. With ACG we also got a significant exposure to the construction infrastructure around the Permian Basin. So we also have a presence in West Texas in the Permian Basin. With ACG we got a significant exposure to Oklahoma. We have a small exposure to Louisiana. And then we have a Nevada something in the Midwest and the north west of the US that came with ACG. That's from the -- let's say on the pure aggregate side. On the specialty materials we've mentioned that this material is a little different. It's a material that travels much further than the aggregates. So we have plants around the country and we serve a national market. So it's a more product-oriented than geographic-oriented market. And with ACG, we also got some specialty materials. So I'm not sure I answered your question, but those are the two main areas where we are very strong. Going forward, where we want to grow I think we see ACG's acquisition as a platform and we will be able to evaluate potential acquisitions based on their own merits once we see them.
Zane Karimi -- D.A. Davidson -- Analyst
Perfect. And then one quick follow up there. I know you guys dont reportaverage selling prices. But could you speak qualitatively at least about your own pricing initiatives and plans for 2019 for these products?
Scott Beasley -- Chief Financial Officer
Sure. This is Scott. So you know, it obviously varies market by market and we've talked about in DFW there have been some pricing headwinds as additional suppliers come into the market. But in other geographies we've been able to -- ASP has increased and across ACG's footprint in general, which is not DFW-centric, ASP's have increased kind of roughly in line with industry numbers. So it's market by market, but healthy across the board.
Zane Karimi -- D.A. Davidson -- Analyst
Thank you.
Operator
And we'll take our next question from Blake with Stephens Incorporated. Your line is open.
Blake -- Stephens Incorporated -- Analyst
Yeah, thanks. Good morning, guys. Congrats on a good quarter.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Blake.
Scott Beasley -- Chief Financial Officer
Thank you, Blake.
Blake -- Stephens Incorporated -- Analyst
First off, I could have missed it, but could you unpack what ACG versus organic growth was in the Construction Products piece of business this quarter?
Scott Beasley -- Chief Financial Officer
Sure. This is Scott. We don't break it out separately, but what we said was ACG was roughly in line with our expectations at the time of acquisition. So that did well and then organically driven by the pricing and volume headwinds that we talked about in DFW. The legacy businesses shrunk a little bit, but again that was expected and part of the trend that we had talked about with very healthy margins compared to the industry, but some additional supply coming into the market that hurt pricing.
Blake -- Stephens Incorporated -- Analyst
And on components is there any update there or anything kind of notable to call out in your first few months of operating as a stand-alone and kind of with the Trinity agreements in place. Just curious, if there's any color to add there.
Scott Beasley -- Chief Financial Officer
Sure. I think, you know it's a -- we've talked about the diversification strategy that our former parent is obviously a big customer and over time we want to grow and diversify the customer base. We're making early progress on that strategy. We've received some nice new orders from customers both on the railcar builder side, but also maintenance services, railroads. It's a broader market than just railcar builders. So, I'd say it's early, but the signs are positive commercially. And then operationally we're very focused on being as competitive as possible reducing waste in the system and the team's done a really good job with their own set of clean initiatives.
Blake -- Stephens Incorporated -- Analyst
Got it. And then just lastly cash flow generation was nice in the quarter. Can you kind of remind us how you guys think about it from a conversion standpoint. I mean, I got the guidance for this year, but kind of longer term whether you guys comp into net income or EBITDA and kind of what the conversion rates that you're typically looking for are? Thanks.
Scott Beasley -- Chief Financial Officer
Sure, So we talked about the goal at Investor Day was have working capital as a lower percentage of sales as we go forward. We know that it was elevated going into this year for a few different reasons. We had some customer terms on a few large contracts that extended into Q1. And then we had some spin-related items and ACG-related increases. The team did a really good job resolving a lot of those generating $75 million of working capital on the quarter. And we would expect to consume a portion of that in the barge business this year, but still end up the year with working capital as a smaller percentage of sales than we did at the end of last year.
Blake -- Stephens Incorporated -- Analyst
Thanks guys.
Operator
And at this time we have no further questions, I'll turn the call back over to Gail Peck for any closing remarks.
Gail M. Peck -- Senior Vice President, Finance and Treasurer
Thank you, Ashley. Thank you everyone for joining us today. We look forward to speaking with you again next quarter.
Operator
And this does conclude today's program. You may disconnect at any time.
Duration: 46 minutes
Call participants:
Gail M. Peck -- Senior Vice President, Finance and Treasurer
Antonio Carrillo -- President and Chief Executive Officer
Scott Beasley -- Chief Financial Officer
Justin Bergner -- G. Research -- Analyst
Stefanos Crist -- CJS Securities -- Analyst
Ian Zaffino -- Oppenheimer -- Analyst
Bascome Majors -- Susquehanna -- Analyst
Zane Karimi -- D.A. Davidson -- Analyst
Blake -- Stephens Incorporated -- Analyst
More ACA analysis
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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, Inc (NYSE: ACA) Q1 2019 Earnings Call May. Davidson -- Analyst Blake -- Stephens Incorporated -- Analyst More ACA analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Slide 8, provides additional insights on the development of our Transportation Products Group, where our near-term priority has been to expand capacity to capture the emerging ongoing recovery in barges and to build our customer base for railcar components. | Arcosa, Inc (NYSE: ACA) Q1 2019 Earnings Call May. Davidson -- Analyst Blake -- Stephens Incorporated -- Analyst More ACA analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. The adjusted EBITDA margin of 16.8% was driven by four main factors: continued strong operating performance in our wind terrorist business; early operating improvements in our utility structures business; the divestment of our cryogenic tank and oilfield equipment businesses in the fourth quarter of 2018; and the recovery of $2.9 million and accounts receivable from a canceled utility structures project in Mexico, that was previously written off. | Arcosa, Inc (NYSE: ACA) Q1 2019 Earnings Call May. Davidson -- Analyst Blake -- Stephens Incorporated -- Analyst More ACA analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Three main factors contributed to the year-over-year margin decline: first, as Antonio discussed annual ACG margins are closer to 20%, which lowered our segment margins but were accretive to our overall Arcosa margins; second, volumes and margins in our legacy aggregates business are still at healthy levels, but we faced some expected volume and pricing headwinds in our DFW market as well as a tough comp from last year; third, product mix and planned maintenance shutdowns in our specialty lightweight aggregates business impacted margins. | Arcosa, Inc (NYSE: ACA) Q1 2019 Earnings Call May. Davidson -- Analyst Blake -- Stephens Incorporated -- Analyst More ACA analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. I'll give more color on each segments financial results during the quarter starting with Slide 9. |
35449.0 | 2019-04-11 00:00:00 UTC | Arcosa, Inc. (ACA) Ex-Dividend Date Scheduled for April 12, 2019 | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-ex-dividend-date-scheduled-april-12-2019-2019-04-11 | nan | nan | Arcosa, Inc. ( ACA ) will begin trading ex-dividend on April 12, 2019. A cash dividend payment of $0.05 per share is scheduled to be paid on April 30, 2019. Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. At the current stock price of $30.87, the dividend yield is .65%.
The previous trading day's last sale of ACA was $30.87, representing a -12.18% decrease from the 52 week high of $35.15 and a 47% increase over the 52 week low of $21.
ACA is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc ( TMO ) and Danaher Corporation ( DHR ). Zacks Investment Research reports ACA's forecasted earnings growth in 2019 as 2.88%, compared to an industry average of 8.2%.
For more information on the declaration, record and payment dates, visit the ACA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. ACA is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc ( TMO ) and Danaher Corporation ( DHR ). Zacks Investment Research reports ACA's forecasted earnings growth in 2019 as 2.88%, compared to an industry average of 8.2%. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Arcosa, Inc. ( ACA ) will begin trading ex-dividend on April 12, 2019. Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of ACA was $30.87, representing a -12.18% decrease from the 52 week high of $35.15 and a 47% increase over the 52 week low of $21. For more information on the declaration, record and payment dates, visit the ACA Dividend History page. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. Arcosa, Inc. ( ACA ) will begin trading ex-dividend on April 12, 2019. The previous trading day's last sale of ACA was $30.87, representing a -12.18% decrease from the 52 week high of $35.15 and a 47% increase over the 52 week low of $21. |
35450.0 | 2019-03-27 00:00:00 UTC | Why Exact Sciences Stock Sank Today | ACA | https://www.nasdaq.com/articles/why-exact-sciences-stock-sank-today-2019-03-27 | nan | nan | What happened
Shares of Exact Sciences Corporation (NASDAQ: EXAS) were sinking by 10.2% as of 3:02 p.m. EDT on Wednesday. The stock appeared to be hit hard by news that the Trump administration is attempting to have the Affordable Care Act (ACA), also known as Obamacare, struck down in its entirety by a federal court.
So what
Healthcare stocks, in general, dropped on the news that the White House is now seeking to completely invalidate the ACA. The concern for investors is that if the ACA were struck down, millions of Americans would no longer have health insurance. If these individuals no longer were covered by insurers, they'd be less likely to obtain healthcare services and use products such as Exact Sciences' Cologuard DNA test for colorectal cancer screening.
Exact Sciences was probably impacted more than many healthcare stocks because of its steep valuation. The company's market cap tops $10 billion although it remains unprofitable.
However, it's way too early for investors to be overly worried. The U.S. Supreme Court has upheld key provisions of the ACA before. Nothing in today's news will impact Exact Sciences' business for now, and perhaps nothing will.
Now what
The next step in the battle over Obamacare is for a federal appeals court to decide whether to uphold a ruling by a Texas district court judge to invalidate the ACA. Regardless of the decision, though, it seems likely that the U.S. Supreme Court could again become involved in determining what happens to the healthcare law.
Meanwhile, Exact Sciences' revenue continues to soar and should keep doing so. The company's partnership with Pfizer is likely to create more opportunities for Cologuard. Exact Sciences also hopes to win an expanded label for the DNA test, to lower the minimum age for which it can be used from 50 to 45. Despite concerns about uncertainty over Obamacare, Exact Sciences' long-term prospects still appear bright.
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Keith Speights owns shares of Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock appeared to be hit hard by news that the Trump administration is attempting to have the Affordable Care Act (ACA), also known as Obamacare, struck down in its entirety by a federal court. So what Healthcare stocks, in general, dropped on the news that the White House is now seeking to completely invalidate the ACA. The concern for investors is that if the ACA were struck down, millions of Americans would no longer have health insurance. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The stock appeared to be hit hard by news that the Trump administration is attempting to have the Affordable Care Act (ACA), also known as Obamacare, struck down in its entirety by a federal court. So what Healthcare stocks, in general, dropped on the news that the White House is now seeking to completely invalidate the ACA. | The stock appeared to be hit hard by news that the Trump administration is attempting to have the Affordable Care Act (ACA), also known as Obamacare, struck down in its entirety by a federal court. So what Healthcare stocks, in general, dropped on the news that the White House is now seeking to completely invalidate the ACA. The concern for investors is that if the ACA were struck down, millions of Americans would no longer have health insurance. | The concern for investors is that if the ACA were struck down, millions of Americans would no longer have health insurance. The stock appeared to be hit hard by news that the Trump administration is attempting to have the Affordable Care Act (ACA), also known as Obamacare, struck down in its entirety by a federal court. So what Healthcare stocks, in general, dropped on the news that the White House is now seeking to completely invalidate the ACA. |
35451.0 | 2019-03-26 00:00:00 UTC | How to Shop for Health Insurance | ACA | https://www.nasdaq.com/articles/how-shop-health-insurance-2019-03-26 | nan | nan | Healthcare is very expensive, so you need to have health insurance in case you get sick. Without health insurance, a simple broken bone or even a minor illness could put you thousands of dollars in debt -- or even lead to medical bankruptcy.
Unfortunately, figuring out how to buy health insurance is much more complicated than most purchases you make. There's a wealth of jargon to learn, it's hard to estimate which plan is the best deal for your situation, and the price of a policy can be painfully high.
There's good news, though: This guide will give you details about everything you need to know, so you can shop for health insurance and find a policy that works for you.
How to shop for health insurance
When you're shopping for health insurance, there are a few key steps to take, including:
Learning the lingo
Determining what kind of policy you want
Deciding where to shop for a policy
Shopping for coverage at the right time
Comparing coverage and benefits
Evaluating the network of providers
Learning the lingo
As you compare policies, you'll come across industry-specific language that may be unfamiliar. Some of the key terms to know include:
Covered service: A covered service is a service included in your policy. For example, a doctor's visit to treat illness would usually be a covered service, but elective cosmetic surgery wouldn't be. Just because a service is covered doesn't mean your insurer pays for 100%. If you haven't met your deductible, you may have to pay out of pocket -- but the payments would count toward meeting your deductible. Services that aren't covered don't count toward your deductible.
Copay: Copays are money you pay when you get a covered service. If you have a $10 copay for doctor visits and a $5 copay for prescriptions, you'll pay $10 each time you visit your doctor's office and $5 for each prescription you fill. Many policies have different copays for different services.
Coinsurance: Coinsurance is the part of your medical bills you're obligated to pay. Your policy may pick up 80% of covered services, meaning you'd be responsible for the remaining 20%.
Deductible: This is the amount you pay out of pocket each year before the insurer begins to pay for care. If you have a $2,000 deductible, you'd pay $2,000 for covered services before your insurer paid anything. However, many policies cover preventive care before you meet your deductible -- so you might be able to get a physical without paying, but you would need to pay for treatment the doctor recommended after the physical if you hadn't met your deductible.
Preventive care: This is care you need to stay healthy, rather than treatment for disease. It includes cancer screenings, an annual physical, and vaccinations.
Premiums: Premiums are the monthly fees you pay for an insurance policy. They can go up or down each year when you renew your policy, but they're the same each month from the time you sign up for coverage until the renewal period.
Out-of-pocket limit: The out-of-pocket limit is the maximum you'll pay for covered healthcare services over the course of the year. If you have a $5,000 out-of-pocket limit, once you've paid $5,000 -- including your deductible and co-insurance costs, but not including insurance premiums -- you don't have to pay any more. Some policies have different out-of-pocket limits for in-network care versus out-of-network care.
In-network care: In-network care is care provided by a medical service provider that participates with your insurer. When a caregiver is in-network, the caregiver agrees upon rates with your insurer. You can't be charged more than those agreed-upon rates. And if you pay for a covered service from an in-network provider, the entire amount you pay counts toward meeting your deductible.
Out-of-network care: Out-of-network care is provided by a medical service provider that doesn't participate with your insurer. The provider doesn't have negotiated rates with your insurer and thus may charge more than your insurance company pays for a particular service. If the out-of-network provider charges more, you'll have to pay the rest of the cost -- and only a portion of what you pay might count toward meeting your deductible.
You'll need to know what these terms mean as you decide what kind of policy you want and comparison-shop among different plans.
Decide what kind of policy you want
Not all insurance policies are created equal. Some policies provide much more coverage, with lower deductibles, lower copays, lower out-of-pocket limits, and low or no coinsurance costs. Those policies usually have higher premiums. Other policies provide much less coverage but charge lower premiums.
Policies also differ regarding when you can receive services and what you must do to get those services covered. For example, with some insurance policies, you can only see a specialist if you've received a referral from another doctor.
The different types of policies that you can choose from include:
High-deductible health plans (HDHPs): Also called catastrophic health plans, these policies have the lowest premiums, but their deductibles and out-of-pocket limits are extremely high. You'll be responsible for covering essentially all routine care if you opt for an HDHP. However, you may be able to pair these plans with a health savings account (HSA), healthcare reimbursement account (HRA) or flexible spending account (FSA) so care can be paid for with pre-tax funds. We'll talk more about HRAs, HSAs, and FSAs later.
Health maintenance organizations (HMOs): HMOs typically cover only in-network care and require you to get referrals from a primary care doctor to see specialists. HMOs can be cheaper than other policies, but they limit where you can get care and require you to jump through hoops to get services. Typically, if you see in-network doctors, there's no deductible or a small deductible, and routine care is 100% covered after you pay a copay.
Exclusive provider organizations (EPOs): These are essentially the same as HMOs, but you can get care from a national network of providers, instead of only caregivers in your geographic area.
Point of service plans (POS): These are a form of HMO that allows some coverage for out-of-network doctors if your in-network primary care doctor provides a referral.
Preferred provider organizations (PPOs): These plans give you the most flexibility, but they often come at a higher cost. You don't need referrals from a primary care doctor, and you can see any physician at any time. PPOs usually participate with a network or providers. If you see them, your coinsurance costs, deductible, and out-of-pocket limit are lower. However, you can opt to see out-of-network doctors and still get most costs covered.
Different plans work best for different people. If you have extensive healthcare needs, you may be better off buying the most comprehensive PPO plan you can find with the lowest deductible and out-of-pocket limit. You'll pay a lot more in premiums, but you would know your costs up front, because most services would be covered. But if you're healthy and would only get care in emergency situations, an HDHP may be your best option.
How to decide what type of policy is best
The best way to determine what policy make sense is to estimate your family's healthcare needs and determine what option provides the lowest overall cost, factoring in both premiums and the costs of services.
Some things to think about include:
Will you require a significant amount of covered services? If you're planning to have a baby or managing a chronic disease such as diabetes, you can expect to have more ongoing health expenditures during the year. You may want a policy that costs more up front but provides coverage for care you'll need so you don't have to worry about big unpredictable expenses.
Do you need to see out-of-network providers? If you see specialists that don't participate with most insurance networks, you may want a PPO that provides the most coverage for out-of-network care.
Do you have money to cover care if you need it? If you have a high-deductible health plan, you may need to come up with several thousand dollars if you experience a health issue. For some people, the threat of a big expense suddenly cropping up is harder to budget for than paying higher premiums on a steady basis.
Remember, there's always a trade-off: The more covered services, the higher the premiums. If you want to protect yourself from unexpectedly high medical expenses, it's best to buy a more comprehensive policy, even if higher premiums mean more guaranteed costs.
Decide where to shop for a policy
You may be able to get insurance from a few different sources, depending upon your situation. These include:
An employer: If you or a spouse has access to an employer plan at work, this is often the best choice. Children under 26 can also stay on their parents' workplace insurance plans. Employer plans often provide better coverage than you can purchase on your own, and your employer may pay part of the premiums for you.
The Affordable Care Act (ACA) exchange : The Affordable Care Act (also known as Obamacare) aimed to streamline the process of buying health insurance by encouraging each state to create a marketplace. Washington, D.C. and 11 other states operate their own marketplaces: California , Colorado , Connecticut , District of Columbia , Idaho , Maryland , Massachusetts , Minnesota , New York , Rhode Island , Vermont , and Washington . If you don't live in one of them, you'll shop at Healthcare.gov . If you purchase a policy on the ACA exchange, you may be eligible for subsidies (more on that below), but there might be a limited number of policies in your area.
Buying off-exchange plans: It's also possible to buy insurance policies off the Obamacare exchanges by shopping directly with insurers, going to an insurance agent, or using websites such as ehealthinsurance . When you buy an off-exchange plan, policies that are Obamacare-compliant must meet certain requirements, including covering 10 essential services and no lifetime limits (caps on the total amount the policy can pay over your lifetime). You could also buy non-compliant plans such as short-term health insurance plans, which last only a limited time and don't comply with Obamacare mandates. While these plans are cheaper, their coverage is skimpier.
If you don't have access to an employer plan, getting insurance through the Obamacare exchange probably makes the most sense, because you can count on getting a certain minimum level of coverage and perhaps get help paying premiums.
ACA plans
The ACA fundamentally changed the process of shopping for insurance. First and foremost, it imposed a mandate that all Americans have qualifying health insurance or pay a penalty. This mandate remains in effect for 2019, but it has been zeroed out as of 2020. However, numerous states have passed their own insurance mandates, including Massachusetts and New Jersey, so even if the federal government no longer requires insurance, your state might.
The ACA also changed the process of shopping for insurance in another important way: You can't be denied a policy or be charged more if you have pre-existing conditions. Premiums for each plan are the same for every person in the same geographic area and age group, although tobacco users pay a surcharge. The ACA even capped how much more insurers can charge older people: three times what younger people in the same area pay. Insurers also cannot impose a lifetime limit on the total amount spent on your care.
The ACA also mandates that every policy cover 10 essential benefits, including outpatient care; prescription drugs; emergency room care; mental health services; hospitalization; rehabilitation; preventive care; lab work; vision and dental care for children; and maternity and newborn care.
This doesn't mean your insurance pays every dollar for essential care -- you're still responsible for your deductible and for copays and coinsurance costs until you hit your out-of-pocket limit. But spending on essential benefits counts toward your deductible, insurers must pay something toward them once your deductible is met, and insurers must cover essential care at 100% once you've reached your out-of-pocket maximum.
ACA subsidies
The ACA also provides subsidies for people who make below a certain income level. The subsidies work by capping the percentage of income you pay for a "benchmark" plan. The benchmark plan is a "silver plan." Obamacare plans are divided into four tiers: bronze, silver, gold, and platinum. Silver plans cover around 70% of healthcare costs, leaving you to pay the rest out of pocket.
The following table shows the maximum percentage of your income you'd pay to obtain a benchmark silver plan in 2019.
Data source: HealthInsurance.org .
If your income were $1,000 monthly, you'd be below 133% of the federal poverty level. If the benchmark silver plan cost $450 monthly, the maximum you'd pay would be 2.08% of $1,000, or $20.80. Your subsidies would total $429.20 monthly. You don't have to buy the benchmark silver plan; you can buy any qualifying Obamacare plan. But if you want a more expensive plan, such as a gold or platinum plan, your subsidies cap out at the same percentage, and you pay the difference. If you buy a cheaper plan, the subsidies may cover the premiums entirely, so the plan would be free.
It's important to estimate your income correctly so that the right subsidy can be determined. Otherwise, you could end up having to pay back some of the money.
Shopping for coverage at the right time
Unlike most other products, you can't shop for health insurance whenever you want. You'll need to buy a policy during open enrollment . Open enrollment happens at a designated time, generally once per year.
If you're buying through an employer, your employer sets the open enrollment period. Usually, it runs for about two to four weeks, and coverage starts shortly after. For example, employers may run open enrollment in November, and the policy you select will take effect in January.
If you buy on an Obamacare exchange or buy an off-exchange policy, open enrollment also happens at a specific time designated by the government. Open enrollment for Obamacare for 2019 ran from Nov. 1, 2018 to Dec. 15, 2018 and is over for the year. Open enrollment for 2020 will begin in December 2019. Any plans sold during the 2019 open enrollment period became effective on Jan. 1, 2019.
Once open enrollment closes for the year -- either with your employer or through Obamacare -- you can't enroll in benefits unless you experience a qualifying life event such as:
A job change
Loss of insurance coverage (e.g., because you've turned 26 and aged out of your parent's plan)
A marriage or divorce
The birth of a baby
A death in the family
Moving out of your area
Becoming a U.S. citizen
Release from incarceration
Starting or ending AmeriCorps service
If you don't have a qualifying life event and miss open enrollment, you won't be able to obtain coverage or change coverage until the next open enrollment period.
Comparing coverage and benefits
When you start shopping for insurance policies, you'll need to compare the different rates and terms they offer, as well as what services are covered.
Every policy should provide a detailed explanation of benefits (EOB) specifying covered and excluded services, explaining your coinsurance costs and copays, and detailing what your deductible is. If you want to make sure a specific type of care is covered, such as acupuncture or chiropractic or fertility treatments, the EOB is the place to look.
The EOB will also usually provide examples of how much specific care needs will cost, e.g., how much you would pay if you had a baby or broke your arm. Here's an example of how part of the explanation of benefits may look, showing how much you'd pay for primary care visits, specialist visits, or medical testing.
You can obtain EOBs from each insurer you're considering to see exactly how different policies compare. Remember, there are always trade-offs. If you want low copays, low coinsurance costs, and a low deductible, you'll pay higher premiums. If you want low premiums, you'll have higher copays and coinsurance costs, as well as a bigger deductible.
Evaluating the network of providers
When you compare insurance plans, there's another key criterion: whether the plan has a good network of providers or not. If an insurance company appears to offer many benefits but few doctors or hospitals actually accept the coverage, then it's not a very good plan.
Insurance companies allow you to search their network of providers online. You can search for a specific doctor or facility, such as your local cancer treatment center. You can also search by specialty or area of medicine. If you know you want a pediatrician or a gynecologist but don't know which one, search the network to see how many participating doctors in that field are near you.
Just be aware that online provider directories aren't always 100% up to date. If receiving treatment from a particular provider or treatment center is important, contact that provider before purchasing a plan and ask if they're still in-network.
Investing in accounts to pay healthcare care costs
In addition to buying health insurance, there are various ways you can get tax breaks to make paying for healthcare services more affordable. Some of your options include:
Healthcare reimbursement accounts : Employers maintain HRAs and put money into them, which you can then use to cover eligible expenses. Employers decide whether to offer HRAs and how much money they'll provide. If your employer offers an HRA and puts $750 per year into it, you'll be reimbursed by your employer for up to $750 in covered healthcare spending. Depending on how your employer organized the plan, any unspent money may roll over from year to year. That means if you don't use your $750 in year one and your employer gives you another $750 in year two, you'll have $1,500. In 2019, employers can contribute a maximum of $5,150 in pre-tax funds to an HRA for an individual, or $10,450 for family coverage.
Flexible spending accounts : FSAs allow employees to put money away pre-tax for qualifying health expenses. Only employers can set up an FSA, but unlike an HRA, employees are the ones that make contributions. Employees are limited to $2,700 in pre-tax contributions for 2019. If you don't use the money in an FSA during the year you put it into the account, you generally lose it; it doesn't roll over. However, FSAs that allow you to roll over at least some unused dollars are becoming more common.
Health savings accounts : If you have a qualifying high-deductible health plan, you can open an HSA with any bank or brokerage firm. Some employers also offer HSAs. HSAs allow you to invest money with pre-tax funds and withdraw it without paying taxes to cover qualifying health expenses. You can invest up to $3,500 for individual plans and $7,000 for family coverage in an HSA in 2019. Any unused money remains in the account. Once you turn 65, you're also allowed to withdraw money from an HSA for any purpose without paying penalties -- although withdrawals are taxed as income if the funds aren't used for qualifying health expenses. You're eligible to put money into an HSA in 2019 if you have a health insurance plan with a minimum deductible of $1,350 for individuals and $2,700 for family plans. The plan must have maximum out-of-pocket expenses of $6,750 for singles and $13,500 for families.
Getting the right coverage is essential
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you don't have access to an employer plan, getting insurance through the Obamacare exchange probably makes the most sense, because you can count on getting a certain minimum level of coverage and perhaps get help paying premiums. The Affordable Care Act (ACA) exchange : The Affordable Care Act (also known as Obamacare) aimed to streamline the process of buying health insurance by encouraging each state to create a marketplace. If you purchase a policy on the ACA exchange, you may be eligible for subsidies (more on that below), but there might be a limited number of policies in your area. | The ACA also mandates that every policy cover 10 essential benefits, including outpatient care; prescription drugs; emergency room care; mental health services; hospitalization; rehabilitation; preventive care; lab work; vision and dental care for children; and maternity and newborn care. The Affordable Care Act (ACA) exchange : The Affordable Care Act (also known as Obamacare) aimed to streamline the process of buying health insurance by encouraging each state to create a marketplace. If you purchase a policy on the ACA exchange, you may be eligible for subsidies (more on that below), but there might be a limited number of policies in your area. | The ACA also mandates that every policy cover 10 essential benefits, including outpatient care; prescription drugs; emergency room care; mental health services; hospitalization; rehabilitation; preventive care; lab work; vision and dental care for children; and maternity and newborn care. Once open enrollment closes for the year -- either with your employer or through Obamacare -- you can't enroll in benefits unless you experience a qualifying life event such as: A job change Loss of insurance coverage (e.g., because you've turned 26 and aged out of your parent's plan) A marriage or divorce The birth of a baby A death in the family Moving out of your area Becoming a U.S. citizen Release from incarceration Starting or ending AmeriCorps service If you don't have a qualifying life event and miss open enrollment, you won't be able to obtain coverage or change coverage until the next open enrollment period. The Affordable Care Act (ACA) exchange : The Affordable Care Act (also known as Obamacare) aimed to streamline the process of buying health insurance by encouraging each state to create a marketplace. | The Affordable Care Act (ACA) exchange : The Affordable Care Act (also known as Obamacare) aimed to streamline the process of buying health insurance by encouraging each state to create a marketplace. If you purchase a policy on the ACA exchange, you may be eligible for subsidies (more on that below), but there might be a limited number of policies in your area. Buying off-exchange plans: It's also possible to buy insurance policies off the Obamacare exchanges by shopping directly with insurers, going to an insurance agent, or using websites such as ehealthinsurance . |
35452.0 | 2019-03-25 00:00:00 UTC | ACA vs. SSD: Which Stock Is the Better Value Option? | ACA | https://www.nasdaq.com/articles/aca-vs.-ssd%3A-which-stock-is-the-better-value-option-2019-03-25 | nan | nan | Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA) or Simpson Manufacturing (SSD). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Arcosa and Simpson Manufacturing are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that ACA likely has seen a stronger improvement to its earnings outlook than SSD has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ACA currently has a forward P/E ratio of 15.70, while SSD has a forward P/E of 17.40. We also note that ACA has a PEG ratio of 1.20. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SSD currently has a PEG ratio of 3.48.
Another notable valuation metric for ACA is its P/B ratio of 0.84. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SSD has a P/B of 3.03.
These are just a few of the metrics contributing to ACA's Value grade of A and SSD's Value grade of D.
ACA stands above SSD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ACA is the superior value option right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA) or Simpson Manufacturing (SSD). Investors should feel comfortable knowing that ACA likely has seen a stronger improvement to its earnings outlook than SSD has recently. ACA currently has a forward P/E ratio of 15.70, while SSD has a forward P/E of 17.40. | Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA) or Simpson Manufacturing (SSD). Click to get this free report Arcosa, Inc. (ACA): Free Stock Analysis Report Simpson Manufacturing Company, Inc. (SSD): Free Stock Analysis Report To read this article on Zacks.com click here. Investors should feel comfortable knowing that ACA likely has seen a stronger improvement to its earnings outlook than SSD has recently. | Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA) or Simpson Manufacturing (SSD). These are just a few of the metrics contributing to ACA's Value grade of A and SSD's Value grade of D. ACA stands above SSD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ACA is the superior value option right now. Click to get this free report Arcosa, Inc. (ACA): Free Stock Analysis Report Simpson Manufacturing Company, Inc. (SSD): Free Stock Analysis Report To read this article on Zacks.com click here. | Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA) or Simpson Manufacturing (SSD). These are just a few of the metrics contributing to ACA's Value grade of A and SSD's Value grade of D. ACA stands above SSD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ACA is the superior value option right now. Investors should feel comfortable knowing that ACA likely has seen a stronger improvement to its earnings outlook than SSD has recently. |
35453.0 | 2019-03-20 00:00:00 UTC | Vulcan (VMC) Rides on Strong Aggregates Demand, Costs Rise | ACA | https://www.nasdaq.com/articles/vulcan-vmc-rides-on-strong-aggregates-demand-costs-rise-2019-03-20 | nan | nan | Vulcan Materials CompanyVMC is riding on higher aggregate shipments, strong pricing, cost-saving initiatives and strategic acquisitions.
However, rising diesel and liquid asphalt costs, along with seasonal influences on construction activity are likely to weigh on the company's performance.
Meanwhile, shares of Vulcan have outperformed its industry and the S&P 500 composite in the past three months. Its shares have gained 23.6% compared with the industry's 17.1% growth and the S&P 500's 17.7% rally in the same time frame.
Let's delve deeper into the factors substantiating its Zacks Rank #3 (Hold).
Catalysts Driving Growth
Based in New Jersey, Vulcan is one of the nation's largest producers of construction aggregates. The company's Aggregates business (including crushed stone, sand and gravel, and sand and other aggregates), contributing 80.2% to total revenues in 2018, is one of the major growth drivers for the company.
Over the past few quarters, the company has been experiencing strong aggregate shipments and pricing, backed by growing public demand and operational discipline. In 2018, its aggregate sales increased 13% from a year ago to $3,513.6 million. Shipments (volumes) were up 10% year over year (6% on a same-store basis) and mix-adjusted price increased 3.5%, led by double-digit growth in Alabama, Arizona, Florida, Illinois, Tennessee and Texas. Notably, total revenues grew 13% on a year-over-year basis to $4,382.9 million in 2018.
Vulcan projects aggregate shipments to rise 3-5% year over year in 2019. Also, aggregates freight-adjusted price is expected to increase 5-7% from a year ago.
Meanwhile, increased construction spending in the United States in recent times is a pure bliss for Vulcan. Precisely, public sector construction spending (representing 45-55% of total aggregate shipments) is quite stable compared with the private sector, as it is less affected by general economic cycles. The company is witnessing strong public-sector demand, courtesy of Trump's impetus to fix America's infrastructure over the next 10 years.
Again, the company focuses on reducing controllable costs and maximizing operating efficiency across the organization in order to generate higher earnings and cash flow. Strong local operating disciplines, production efficiency and a commitment to improve on a regular basis have led to considerable cost savings for Vulcan. Notably, in 2018, its selling, administrative and general expenses, as a percentage of total revenues, improved 75 basis points. Adjusted EBITDA increased 15.3% from a year ago in the same period.
Notably, the company anticipates double-digi t earnings growth in 2019, backed by continued strength in public and private construction demand. Per the consensus estimate, adjusted earnings is currently pegged at $4.78 per share for 2019, reflecting 18% year-over-year growth.
Vulcan followed a systematic inorganic strategy for expansion and has wrapped up various bolt-on acquisitions that significantly contributed to growth. In 2018, the company closed four acquisitions for a total consideration of $219.9 million.
Factors Affecting Vulcan's Profitability
Vulcan is experiencing higher diesel and liquid asphalt costs over the last few quarters. Diesel expenses increased 25% and liquid asphalt costs grew 32% year over year in 2018. Asphalt gross profit declined 38.5% year over year, as higher liquid asphalt costs negatively affected segmental earnings by $54 million. The company uses large amounts of electricity, diesel fuel, liquid asphalt and other petroleum-based resources, subject to potential supply constraints and significant price fluctuation. Variability in the supply and prices of these resources could weigh on its operating costs and profitability going forward.
Moreover, the company is prone to bad weather conditions, as most of its products are used outdoors in the public or private construction industry. Also, the company's production and distribution facilities are located outdoors. Inclement weather affects its ability to produce and distribute products, in turn impacting demand.
Stocks to Consider
Some better-ranked stocks in the Zacks Construction sector include Arcosa, Inc. ACA , Armstrong World Industries, Inc. AWI and Fastenal Company FAST , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Arcosa and Armstrong World's earnings for the next year are expected to increase 28.7% and 12.6%, respectively.
Fastenal is expected to record 8% earnings growth in the current year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks to Consider Some better-ranked stocks in the Zacks Construction sector include Arcosa, Inc. ACA , Armstrong World Industries, Inc. AWI and Fastenal Company FAST , each carrying a Zacks Rank #2 (Buy). Click to get this free report Armstrong World Industries, Inc. (AWI): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Vulcan Materials Company (VMC): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Again, the company focuses on reducing controllable costs and maximizing operating efficiency across the organization in order to generate higher earnings and cash flow. | Stocks to Consider Some better-ranked stocks in the Zacks Construction sector include Arcosa, Inc. ACA , Armstrong World Industries, Inc. AWI and Fastenal Company FAST , each carrying a Zacks Rank #2 (Buy). Click to get this free report Armstrong World Industries, Inc. (AWI): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Vulcan Materials Company (VMC): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Over the past few quarters, the company has been experiencing strong aggregate shipments and pricing, backed by growing public demand and operational discipline. | Stocks to Consider Some better-ranked stocks in the Zacks Construction sector include Arcosa, Inc. ACA , Armstrong World Industries, Inc. AWI and Fastenal Company FAST , each carrying a Zacks Rank #2 (Buy). Click to get this free report Armstrong World Industries, Inc. (AWI): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Vulcan Materials Company (VMC): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Asphalt gross profit declined 38.5% year over year, as higher liquid asphalt costs negatively affected segmental earnings by $54 million. | Stocks to Consider Some better-ranked stocks in the Zacks Construction sector include Arcosa, Inc. ACA , Armstrong World Industries, Inc. AWI and Fastenal Company FAST , each carrying a Zacks Rank #2 (Buy). Click to get this free report Armstrong World Industries, Inc. (AWI): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Vulcan Materials Company (VMC): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Over the past few quarters, the company has been experiencing strong aggregate shipments and pricing, backed by growing public demand and operational discipline. |
35454.0 | 2019-03-19 00:00:00 UTC | Strategic Acquisitions Bode Well for Masco, Costs Increase | ACA | https://www.nasdaq.com/articles/strategic-acquisitions-bode-well-for-masco-costs-increase-2019-03-19 | nan | nan | Masco Corporation 's MAS inorganic moves, value-building techniques and cost-saving initiatives are key growth drivers. Meanwhile, shares of Masco have gained 35.1% in the past three months, outperforming its industry 's rally of 12.5%.
However, rising raw material costs and prevailing homebuilding headwinds raise concerns.
Let's delve deeper into the factors substantiating its Zacks Rank #3 (Hold).
Key Growth Drivers
Masco, being one of the leading cabinet manufacturers in the United States, holds the highest share in faucets. The company's value-building techniques depict strong demand for its market-leading brands. Notably, its Behr brand is the topmost brand for architectural coatings in the DIY market.
The company expands its product portfolio through various inorganic moves. In 2018, the company acquired Kichler Lighting in order to complement its product line and expand in the fragmented $6-billion U.S. residential lighting industry. The acquisition significantly contributed to sales growth of the Decorative Architectural Products segment in 2018. Its 2019 performance will continue to be leveraged by enhanced product portfolio, with existing and new customers realizing further operational improvements, and optimizing its brand and go-to-market capabilities.
Meanwhile, the company regularly divests the less profitable and underperforming businesses to focus on its core areas, in a bid to accelerate growth and improve shareholder value. The company is enthusiastic about the future prospect of expansion and margin growth.
Cost-cutting initiatives are boosting profits through business consolidations, system implementations, plant & branch closures, improvement in the global supply chain, and headcount reductions. Although the company has been experiencing depressed margins, it remains structured to optimize corporate demand for driving strong growth and margin expansion in the near future. Notably, in 2018, selling, general and administrative expenses were 17.7% of net revenues, contracting 90 basis points (bps) year over year.
Causes of Concern
In 2018, Masco's adjusted gross and operating margins declined 200 bps and 60 bps, respectively, due to increased commodity costs, higher depreciation expense, and ERP and logistics costs. Raw material costs and expenses related to new product launches are hurting its margins and profits. Masco purchases several raw materials like resin, copper and zinc to manufacture its products. Fluctuations in the prices and availability of these raw materials might increase the cost of production.
Meanwhile, the company's overall performance is directly affected by volatility in the housing market. Over the last few quarters, the housing market has been witnessing a slowdown due to the affordability concerns arising from higher housing prices and rising mortgage rate. The company believes that the above-mentioned headwinds are likely to hamper its performance going forward.
For full-year 2019, repair and remodel business (which represents approximately 85% of its business), is expected to grow in mid-single digits, lower than the 2018 level. Also, new construction is anticipated to rise in low-single digits, mainly due to labor constraints and affordability concerns prevailing in the market.
Moreover, in international markets, specifically in Europe, sales are likely to grow in low-single digits. Consequently, overall sales growth (excluding currency) is expected in the range of 3-5% (versus 9.4% improvement in the year-ago period).
Stocks to Consider
Arcosa and Armstrong World's earnings for the next year are expected to increase 28.7% and 12.6%, respectively.
Fastenal is expected to record 8% earnings growth in the current year.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report Armstrong World Industries, Inc. (AWI): Free Stock Analysis Report Masco Corporation (MAS): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Its 2019 performance will continue to be leveraged by enhanced product portfolio, with existing and new customers realizing further operational improvements, and optimizing its brand and go-to-market capabilities. Meanwhile, the company regularly divests the less profitable and underperforming businesses to focus on its core areas, in a bid to accelerate growth and improve shareholder value. | Click to get this free report Armstrong World Industries, Inc. (AWI): Free Stock Analysis Report Masco Corporation (MAS): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Masco Corporation 's MAS inorganic moves, value-building techniques and cost-saving initiatives are key growth drivers. Causes of Concern In 2018, Masco's adjusted gross and operating margins declined 200 bps and 60 bps, respectively, due to increased commodity costs, higher depreciation expense, and ERP and logistics costs. | Click to get this free report Armstrong World Industries, Inc. (AWI): Free Stock Analysis Report Masco Corporation (MAS): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Although the company has been experiencing depressed margins, it remains structured to optimize corporate demand for driving strong growth and margin expansion in the near future. Causes of Concern In 2018, Masco's adjusted gross and operating margins declined 200 bps and 60 bps, respectively, due to increased commodity costs, higher depreciation expense, and ERP and logistics costs. | Click to get this free report Armstrong World Industries, Inc. (AWI): Free Stock Analysis Report Masco Corporation (MAS): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. However, rising raw material costs and prevailing homebuilding headwinds raise concerns. The company expands its product portfolio through various inorganic moves. |
35455.0 | 2019-03-15 00:00:00 UTC | Top Ranked Momentum Stocks to Buy for March 15th | ACA | https://www.nasdaq.com/articles/top-ranked-momentum-stocks-to-buy-for-march-15th-2019-03-15 | nan | nan | Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 15th:
Inter Parfums, Inc. (IPAR): This fragrances and fragrance related products manufacturer has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days.
Inter Parfums, Inc. Price and Consensus
Inter Parfums, Inc. price-consensus-chart | Inter Parfums, Inc. Quote
Inter Parfums' shares gained 9.4% over the last one month more than S&P 500's gain of 1.4%. The company possesses a Momentum Score of A.
Inter Parfums, Inc. Price
Inter Parfums, Inc. price | Inter Parfums, Inc. Quote
Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days.
Arcosa, Inc. Price and Consensus
Arcosa, Inc. price-consensus-chart | Arcosa, Inc. Quote
Arcosa's shares gained 3.9% over the last one month. The company possesses a Momentum Score of A.
Arcosa, Inc. Price
Arcosa, Inc. price | Arcosa, Inc. Quote
Alpine Immune Sciences, Inc. (ALPN): This developer of protein-based immunotherapies has a Zacks Rank #1 (Strong Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.2% over the last 60 days.
Nivalis Therapeutics, Inc. Price and Consensus
Nivalis Therapeutics, Inc. price-consensus-chart | Nivalis Therapeutics, Inc. Quote
Alpine Immune's shares gained 15.9% over the last one month. The company possesses a Momentum Score of B.
Nivalis Therapeutics, Inc. Price
Nivalis Therapeutics, Inc. price | Nivalis Therapeutics, Inc. Quote
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company possesses a Momentum Score of A. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Inter Parfums, Inc. (IPAR): Free Stock Analysis Report Nivalis Therapeutics, Inc. (ALPN): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 15th: Inter Parfums, Inc. (IPAR): This fragrances and fragrance related products manufacturer has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days. | The company possesses a Momentum Score of A. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Inter Parfums, Inc. (IPAR): Free Stock Analysis Report Nivalis Therapeutics, Inc. (ALPN): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Inter Parfums, Inc. Price and Consensus Inter Parfums, Inc. price-consensus-chart | Inter Parfums, Inc. Quote Inter Parfums' shares gained 9.4% over the last one month more than S&P 500's gain of 1.4%. | The company possesses a Momentum Score of A. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Inter Parfums, Inc. (IPAR): Free Stock Analysis Report Nivalis Therapeutics, Inc. (ALPN): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of A. Arcosa, Inc. Price Arcosa, Inc. price | Arcosa, Inc. Quote Alpine Immune Sciences, Inc. (ALPN): This developer of protein-based immunotherapies has a Zacks Rank #1 (Strong Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.2% over the last 60 days. | The company possesses a Momentum Score of A. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Inter Parfums, Inc. (IPAR): Free Stock Analysis Report Nivalis Therapeutics, Inc. (ALPN): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 15th: Inter Parfums, Inc. (IPAR): This fragrances and fragrance related products manufacturer has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days. |
35456.0 | 2019-03-14 00:00:00 UTC | Top Ranked Momentum Stocks to Buy for March 14th | ACA | https://www.nasdaq.com/articles/top-ranked-momentum-stocks-to-buy-for-march-14th-2019-03-14 | nan | nan | Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 14th:
Digital Turbine, Inc. (APPS): This provider of media and mobile communication services has a Zacks Rank #1 (Strong Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 75% over the last 60 days.
Digital Turbine, Inc. Price and Consensus
Digital Turbine, Inc. price-consensus-chart | Digital Turbine, Inc. Quote
Digital Turbine's shares gained 4% over the last one month more than S&P 500's gain of 2.4%. The company possesses a Momentum Score of B.
Digital Turbine, Inc. Price
Digital Turbine, Inc. price | Digital Turbine, Inc. Quote
Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days.
Arcosa, Inc. Price and Consensus
Arcosa, Inc. price-consensus-chart | Arcosa, Inc. Quote
Arcosa's shares gained 8.4% over the last one month. The company possesses a Momentum Score of B.
Arcosa, Inc. Price
Arcosa, Inc. price | Arcosa, Inc. Quote
AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days.
AAON, Inc. Price and Consensus
AAON, Inc. price-consensus-chart | AAON, Inc. Quote
AAON's shares gained 9% over the last one month. The company possesses a Momentum Score of A.
AAON, Inc. Price
AAON, Inc. price | AAON, Inc. Quote
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here .
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 - 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Digital Turbine, Inc. (APPS): Free Stock Analysis Report
Arcosa, Inc. (ACA): Free Stock Analysis Report
AAON, Inc. (AAON): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Digital Turbine, Inc. Price Digital Turbine, Inc. price | Digital Turbine, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Digital Turbine, Inc. (APPS): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 14th: Digital Turbine, Inc. (APPS): This provider of media and mobile communication services has a Zacks Rank #1 (Strong Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 75% over the last 60 days. | Digital Turbine, Inc. Price Digital Turbine, Inc. price | Digital Turbine, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Digital Turbine, Inc. (APPS): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. Digital Turbine, Inc. Price and Consensus Digital Turbine, Inc. price-consensus-chart | Digital Turbine, Inc. Quote Digital Turbine's shares gained 4% over the last one month more than S&P 500's gain of 2.4%. | Digital Turbine, Inc. Price Digital Turbine, Inc. price | Digital Turbine, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Digital Turbine, Inc. (APPS): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of B. Arcosa, Inc. Price Arcosa, Inc. price | Arcosa, Inc. Quote AAON, Inc. (AAON): This manufacturer of air conditioning and heating equipment has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days. | Digital Turbine, Inc. Price Digital Turbine, Inc. price | Digital Turbine, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Digital Turbine, Inc. (APPS): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report AAON, Inc. (AAON): Free Stock Analysis Report To read this article on Zacks.com click here. Digital Turbine, Inc. Price and Consensus Digital Turbine, Inc. price-consensus-chart | Digital Turbine, Inc. Quote Digital Turbine's shares gained 4% over the last one month more than S&P 500's gain of 2.4%. |
35457.0 | 2019-03-12 00:00:00 UTC | Top Ranked Momentum Stocks to Buy for March 12th | ACA | https://www.nasdaq.com/articles/top-ranked-momentum-stocks-to-buy-for-march-12th-2019-03-12 | nan | nan | Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 12th:
PlayAGS, Inc. (AGS): This designer and supplier of electronic gaming machines has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 24% over the last 60 days.
PlayAGS, Inc. Price and Consensus
PlayAGS, Inc. price-consensus-chart | PlayAGS, Inc. Quote
PlayAGS' shares gained 11.7% over the last one month more than S&P 500's gain of 1.1%. The company possesses a Momentum Score of B.
PlayAGS, Inc. Price
PlayAGS, Inc. price | PlayAGS, Inc. Quote
Inter Parfums, Inc. (IPAR): This fragrances and fragrance related products manufacturer has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days.
Inter Parfums, Inc. Price and Consensus
Inter Parfums, Inc. price-consensus-chart | Inter Parfums, Inc. Quote
Inter Parfums' shares gained 9.8% over the last one month. The company possesses a Momentum Score of B.
Inter Parfums, Inc. Price
Inter Parfums, Inc. price | Inter Parfums, Inc. Quote
Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days.
Arcosa, Inc. Price and Consensus
Arcosa, Inc. price-consensus-chart | Arcosa, Inc. Quote
Arcosa's shares gained 14.6% over the last one month. The company possesses a Momentum Score of B.
Arcosa, Inc. Price
Arcosa, Inc. price | Arcosa, Inc. Quote
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here .
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 - 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Inter Parfums, Inc. (IPAR): Free Stock Analysis Report
PlayAGS, Inc. (AGS): Free Stock Analysis Report
Arcosa, Inc. (ACA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company possesses a Momentum Score of B. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Inter Parfums, Inc. (IPAR): Free Stock Analysis Report PlayAGS, Inc. (AGS): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 12th: PlayAGS, Inc. (AGS): This designer and supplier of electronic gaming machines has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 24% over the last 60 days. | The company possesses a Momentum Score of B. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Inter Parfums, Inc. (IPAR): Free Stock Analysis Report PlayAGS, Inc. (AGS): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of B. PlayAGS, Inc. Price PlayAGS, Inc. price | PlayAGS, Inc. Quote Inter Parfums, Inc. (IPAR): This fragrances and fragrance related products manufacturer has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days. | The company possesses a Momentum Score of B. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Inter Parfums, Inc. (IPAR): Free Stock Analysis Report PlayAGS, Inc. (AGS): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of B. PlayAGS, Inc. Price PlayAGS, Inc. price | PlayAGS, Inc. Quote Inter Parfums, Inc. (IPAR): This fragrances and fragrance related products manufacturer has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days. | The company possesses a Momentum Score of B. Inter Parfums, Inc. Price Inter Parfums, Inc. price | Inter Parfums, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. Click to get this free report Inter Parfums, Inc. (IPAR): Free Stock Analysis Report PlayAGS, Inc. (AGS): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. PlayAGS, Inc. Price and Consensus PlayAGS, Inc. price-consensus-chart | PlayAGS, Inc. Quote PlayAGS' shares gained 11.7% over the last one month more than S&P 500's gain of 1.1%. |
35458.0 | 2019-03-11 00:00:00 UTC | Aegion's (AEGN) Unit Wins Wastewater Rehabilitation Contract | ACA | https://www.nasdaq.com/articles/aegions-aegn-unit-wins-wastewater-rehabilitation-contract-2019-03-11 | nan | nan | Aegion Corporation 's AEGN unit, Insituform Technologies, LLC has received a contract from the City of Lawrence, MA, related to the Wastewater Rehabilitation Project in the state. The project is expected to start in April 2019 and slated to be completed within two years.
Under the 10.6-million contract, Insituform will rehabilitate nearly 8 miles of 8- to 54-inch wastewater pipelines located in residential, commercial and industrial areas, alongside the Merrimack River. Insituform, acting as the general contractor on the project, will manage the installation of its Insituform cured-in-place pipe ("CIPP") along with all other aspects of the project. This usage of CIPP will evade troublesome excavations and sewer shutdowns in high-traffic areas, as well as the riverfront.
The majority of the project, about 60%, will be carried out by recognized local subcontractors that include National Water Main, P. Gioioso & Sons, Ted Berry Company and Tasco Construction.
Aegion remains committed in maintaining its market leadership position in the rehabilitation of wastewater pipelines in North America using CIPP technology, which is the largest contributor to the company's consolidated revenues. Notably, Aegion's Infrastructure Solutions business accounted for 44.5% of revenues in 2018. The company offers a diverse portfolio of solutions in a highly fragmented and growing market.
The company's adjusted earnings grew 17% in 2018 despite nearly 2% decrease in consolidated revenues. The upside was mainly attributable to solid contribution from its Infrastructure Solutions segment, significant top and bottom-line growth from Energy Services, as well as strong execution on multiple coating projects within Corrosion Protection. Infrastructure Solutions backlog at 2018-end, excluding exited or to-be-exited businesses, advanced 5% year over year, driven by increases within North America CIPP.
However, owing to an unfavorable mix in the North America CIPP business in fourth-quarter 2018, the company's Infrastructure Solutions' revenues declined 4.7% year over year. Again, due to the absence of a large project to replace the contribution from Middle East coating projects, overall revenues are expected to decline within 2-4%. Nevertheless, after adjusting for exited or to-be-exited businesses, 2019 consolidated revenues are expected to grow 2-4% from the 2018 level. This has resulted in a significant 18.4% share price decline, following its fourth-quarter results. Over the past three months, Aegion's shares have declined 7.3% against 15.1% growth of its industry .
Nonetheless, in 2019, the company anticipates top-line and profitability improvements in Infrastructure Solutions, Energy Services and the cathodic protection business within Corrosion Protection.
Zacks Rank & Key Picks
Aegion currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Some better-ranked stocks in the Zacks Construction sector include Arcosa, Inc. ACA , Altair Engineering Inc. ALTR and Jacobs Engineering Group Inc. JEC , each carrying a Zacks Rank #2 (Buy).
Arcosa has a three to five year expected EPS growth rate of 13.1%.
Altair Engineering and Jacobs' earnings for the current year are expected to grow 58.6% and 15%, respectively.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Aegion Corporation (AEGN): Free Stock Analysis Report
Jacobs Engineering Group Inc. (JEC): Free Stock Analysis Report
Altair Engineering Inc. (ALTR): Free Stock Analysis Report
Arcosa, Inc. (ACA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the Zacks Construction sector include Arcosa, Inc. ACA , Altair Engineering Inc. ALTR and Jacobs Engineering Group Inc. JEC , each carrying a Zacks Rank #2 (Buy). Click to get this free report Aegion Corporation (AEGN): Free Stock Analysis Report Jacobs Engineering Group Inc. (JEC): Free Stock Analysis Report Altair Engineering Inc. (ALTR): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Aegion Corporation 's AEGN unit, Insituform Technologies, LLC has received a contract from the City of Lawrence, MA, related to the Wastewater Rehabilitation Project in the state. | Some better-ranked stocks in the Zacks Construction sector include Arcosa, Inc. ACA , Altair Engineering Inc. ALTR and Jacobs Engineering Group Inc. JEC , each carrying a Zacks Rank #2 (Buy). Click to get this free report Aegion Corporation (AEGN): Free Stock Analysis Report Jacobs Engineering Group Inc. (JEC): Free Stock Analysis Report Altair Engineering Inc. (ALTR): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. However, owing to an unfavorable mix in the North America CIPP business in fourth-quarter 2018, the company's Infrastructure Solutions' revenues declined 4.7% year over year. | Some better-ranked stocks in the Zacks Construction sector include Arcosa, Inc. ACA , Altair Engineering Inc. ALTR and Jacobs Engineering Group Inc. JEC , each carrying a Zacks Rank #2 (Buy). Click to get this free report Aegion Corporation (AEGN): Free Stock Analysis Report Jacobs Engineering Group Inc. (JEC): Free Stock Analysis Report Altair Engineering Inc. (ALTR): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. However, owing to an unfavorable mix in the North America CIPP business in fourth-quarter 2018, the company's Infrastructure Solutions' revenues declined 4.7% year over year. | Some better-ranked stocks in the Zacks Construction sector include Arcosa, Inc. ACA , Altair Engineering Inc. ALTR and Jacobs Engineering Group Inc. JEC , each carrying a Zacks Rank #2 (Buy). Click to get this free report Aegion Corporation (AEGN): Free Stock Analysis Report Jacobs Engineering Group Inc. (JEC): Free Stock Analysis Report Altair Engineering Inc. (ALTR): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Aegion remains committed in maintaining its market leadership position in the rehabilitation of wastewater pipelines in North America using CIPP technology, which is the largest contributor to the company's consolidated revenues. |
35459.0 | 2019-03-11 00:00:00 UTC | Top Ranked Momentum Stocks to Buy for March 11th | ACA | https://www.nasdaq.com/articles/top-ranked-momentum-stocks-to-buy-for-march-11th-2019-03-11 | nan | nan | Here are four stocks with buy rank and strong momentum characteristics for investors to consider today, March 11th:
DLH Holdings Corp. (DLHC): This healthcare and social services provider has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.3% over the last 60 days.
DLH Holdings Corp. Price and Consensus
DLH Holdings Corp. price-consensus-chart | DLH Holdings Corp. Quote
DLH Holdings' shares gained 8% over the last one month more than S&P 500's gain of 1.2%. The company possesses a Momentum Score of A.
DLH Holdings Corp. Price
DLH Holdings Corp. price | DLH Holdings Corp. Quote
American Assets Trust, Inc. (AAT): This real estate investment trusthas a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 0.9% over the last 60 days.
American Assets Trust, Inc. Price and Consensus
American Assets Trust, Inc. price-consensus-chart | American Assets Trust, Inc. Quote
American Assets' shares gained 2.4% over the last one month. The company possesses a Momentum Score of A.
American Assets Trust, Inc. Price
American Assets Trust, Inc. price | American Assets Trust, Inc. Quote
Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days.
Arcosa, Inc. Price and Consensus
Arcosa, Inc. price-consensus-chart | Arcosa, Inc. Quote
Arcosa's shares gained 13.9% over the last one month. The company possesses a Momentum Score of B.
Arcosa, Inc. Price
Arcosa, Inc. price | Arcosa, Inc. Quote
Acme United Corporation (ACU): This provider of measuring, first aid and sharpening products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.4% over the last 60 days.
Acme United Corporation. Price and Consensus
Acme United Corporation. price-consensus-chart | Acme United Corporation. Quote
Acme's shares gained 3% over the last one month. The company possesses a Momentum Score of A.
Acme United Corporation. Price
Acme United Corporation. price | Acme United Corporation. Quote
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here .
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
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DLH Holdings Corp. (DLHC): Free Stock Analysis Report
Acme United Corporation. (ACU): Free Stock Analysis Report
Arcosa, Inc. (ACA): Free Stock Analysis Report
American Assets Trust, Inc. (AAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company possesses a Momentum Score of A. American Assets Trust, Inc. Price American Assets Trust, Inc. price | American Assets Trust, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. (ACU): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report American Assets Trust, Inc. (AAT): Free Stock Analysis Report To read this article on Zacks.com click here. Here are four stocks with buy rank and strong momentum characteristics for investors to consider today, March 11th: DLH Holdings Corp. (DLHC): This healthcare and social services provider has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.3% over the last 60 days. | The company possesses a Momentum Score of A. American Assets Trust, Inc. Price American Assets Trust, Inc. price | American Assets Trust, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. (ACU): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report American Assets Trust, Inc. (AAT): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of A. DLH Holdings Corp. Price DLH Holdings Corp. price | DLH Holdings Corp. Quote American Assets Trust, Inc. (AAT): This real estate investment trusthas a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 0.9% over the last 60 days. | The company possesses a Momentum Score of A. American Assets Trust, Inc. Price American Assets Trust, Inc. price | American Assets Trust, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. (ACU): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report American Assets Trust, Inc. (AAT): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of A. DLH Holdings Corp. Price DLH Holdings Corp. price | DLH Holdings Corp. Quote American Assets Trust, Inc. (AAT): This real estate investment trusthas a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 0.9% over the last 60 days. | The company possesses a Momentum Score of A. American Assets Trust, Inc. Price American Assets Trust, Inc. price | American Assets Trust, Inc. Quote Arcosa, Inc. (ACA): This manufacturer of infrastructure-related products has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. (ACU): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis Report American Assets Trust, Inc. (AAT): Free Stock Analysis Report To read this article on Zacks.com click here. Here are four stocks with buy rank and strong momentum characteristics for investors to consider today, March 11th: DLH Holdings Corp. (DLHC): This healthcare and social services provider has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.3% over the last 60 days. |
35460.0 | 2019-03-08 00:00:00 UTC | ACA vs. SSD: Which Stock Is the Better Value Option? | ACA | https://www.nasdaq.com/articles/aca-vs.-ssd%3A-which-stock-is-the-better-value-option-2019-03-08 | nan | nan | Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA) or Simpson Manufacturing (SSD). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Arcosa has a Zacks Rank of #2 (Buy), while Simpson Manufacturing has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that ACA likely has seen a stronger improvement to its earnings outlook than SSD has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ACA currently has a forward P/E ratio of 17.95, while SSD has a forward P/E of 18.47. We also note that ACA has a PEG ratio of 1.37. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SSD currently has a PEG ratio of 3.69.
Another notable valuation metric for ACA is its P/B ratio of 0.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SSD has a P/B of 3.22.
These metrics, and several others, help ACA earn a Value grade of A, while SSD has been given a Value grade of F.
ACA is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ACA is likely the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Arcosa, Inc. (ACA): Free Stock Analysis Report
Simpson Manufacturing Company, Inc. (SSD): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA) or Simpson Manufacturing (SSD). Investors should feel comfortable knowing that ACA likely has seen a stronger improvement to its earnings outlook than SSD has recently. ACA currently has a forward P/E ratio of 17.95, while SSD has a forward P/E of 18.47. | Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA) or Simpson Manufacturing (SSD). Click to get this free report Arcosa, Inc. (ACA): Free Stock Analysis Report Simpson Manufacturing Company, Inc. (SSD): Free Stock Analysis Report To read this article on Zacks.com click here. Investors should feel comfortable knowing that ACA likely has seen a stronger improvement to its earnings outlook than SSD has recently. | These metrics, and several others, help ACA earn a Value grade of A, while SSD has been given a Value grade of F. ACA is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. Click to get this free report Arcosa, Inc. (ACA): Free Stock Analysis Report Simpson Manufacturing Company, Inc. (SSD): Free Stock Analysis Report To read this article on Zacks.com click here. Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA) or Simpson Manufacturing (SSD). | These metrics, and several others, help ACA earn a Value grade of A, while SSD has been given a Value grade of F. ACA is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Arcosa (ACA) or Simpson Manufacturing (SSD). Investors should feel comfortable knowing that ACA likely has seen a stronger improvement to its earnings outlook than SSD has recently. |
35461.0 | 2019-03-08 00:00:00 UTC | Validea Benjamin Graham Strategy Daily Upgrade Report - 3/8/2019 | ACA | https://www.nasdaq.com/articles/validea-benjamin-graham-strategy-daily-upgrade-report-382019-2019-03-08 | nan | nan | The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham . This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
SUPERIOR GROUP OF COMPANIES INC ( SGC ) is a small-cap value stock in the Apparel/Accessories industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Superior Group Of Companies, Inc., formerly Superior Uniform Group, Inc., manufactures and sells a range of uniforms, corporate identity apparel, career apparel and accessories for the medical and health fields, as well as for the industrial, commercial, leisure and public safety markets. Superior operates through two segments: Uniforms and Related Products, and Remote Staffing Solutions. The Uniforms and Related Products segment consists of the sale of uniforms and related items. Its principal products are uniforms and service apparel, and related products for personnel of hospitals and health facilities; hotels, commercial buildings, residential buildings and food service facilities; retail stores; general and special purpose industrial uses; commercial enterprises, such as career apparel for banks and airlines; public and private safety and security organizations, and for miscellaneous service uses. The Remote Staffing Solutions segment consists of sales of staffing solutions.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ARCOSA INC ( ACA ) is a small-cap growth stock in the Construction Services industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arcosa, Inc. is focused on manufacturing and producing infrastructure-related products and services. The Company provides its products to a spectrum of markets throughout construction, energy, and transportation. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. The Construction Products Group segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for infrastructure-related projects. The Energy Equipment Group segment manufactures and sells products for energy-related businesses, including structural wind towers, steel utility structures for electricity transmission and distribution, and storage and distribution containers. The Transportation Products Group segment manufactures and sells products for the inland waterway and rail transportation industries including barges, barge-related products, axles, and couplers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Benjamin Graham has returned 445.54% vs. 176.53% for the S&P 500. For more details on this strategy, click here
About Benjamin Graham : The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea : Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC ( ACA ) is a small-cap growth stock in the Construction Services industry. Company Description: Superior Group Of Companies, Inc., formerly Superior Uniform Group, Inc., manufactures and sells a range of uniforms, corporate identity apparel, career apparel and accessories for the medical and health fields, as well as for the industrial, commercial, leisure and public safety markets. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC ( ACA ) is a small-cap growth stock in the Construction Services industry. Company Description: Superior Group Of Companies, Inc., formerly Superior Uniform Group, Inc., manufactures and sells a range of uniforms, corporate identity apparel, career apparel and accessories for the medical and health fields, as well as for the industrial, commercial, leisure and public safety markets. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC ( ACA ) is a small-cap growth stock in the Construction Services industry. Its principal products are uniforms and service apparel, and related products for personnel of hospitals and health facilities; hotels, commercial buildings, residential buildings and food service facilities; retail stores; general and special purpose industrial uses; commercial enterprises, such as career apparel for banks and airlines; public and private safety and security organizations, and for miscellaneous service uses. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ARCOSA INC ( ACA ) is a small-cap growth stock in the Construction Services industry. Company Description: Superior Group Of Companies, Inc., formerly Superior Uniform Group, Inc., manufactures and sells a range of uniforms, corporate identity apparel, career apparel and accessories for the medical and health fields, as well as for the industrial, commercial, leisure and public safety markets. For a full detailed analysis using NASDAQ's Guru Analysis tool, click here Since its inception, Validea's strategy based on Benjamin Graham has returned 445.54% vs. 176.53% for the S&P 500. |
35462.0 | 2019-02-28 00:00:00 UTC | Acacia Mining (ACA) Q4 2018 Earnings Conference Call Transcript | ACA | https://www.nasdaq.com/articles/acacia-mining-aca-q4-2018-earnings-conference-call-transcript-2019-02-28 | nan | nan | Acacia Mining (NYSE: ACA)
Q4 2018 Earnings Conference Call
Feb. 28, 2019 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen, and welcome to the Arcosa, Inc. fourth-quarter and full-year 2018 earnings conference call . My name is Bree, and I'll be your conference call coordinator today. As a reminder, today's call is being recorded.
Now I would like to turn the call over to your host, Gail Peck, SVP, finance and treasurer for Arcosa. Ms. Peck, you may begin.
Gail Peck -- SVP, Finance and Treasurer
Good morning, everyone. Thank you for joining our fourth-quarter and full-year 2018 earnings call . With me today are Antonio Carrillo, president and CEO; and Scott Beasley, CFO. The question-and-answer session will follow their prepared remarks.
A copy of yesterday's press release and a slide presentation for this morning's call are posted at our website, www.arcosa.com. You can access the presentation by going to the Events tab under the Investors section of the website. A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release.
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A replay of the webcast will be available for one year on our website. Today's comments and presentation slides contain financial measures that have not been prepared in accordance with generally accepted accounting principles. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation. Let me also remind you that today's conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the company's SEC filings, including its Form 10-K, that is expected to be filed later today for more information on these risks and uncertainties. I would now like to turn the call over to Antonio.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Gail. Good morning, everyone, and thank you for joining us to review our fourth-quarter results and the outlook for 2019. I will begin my comments with Slide No. 4.
The fourth quarter was an exciting and productive time for us. Arcosa became an independent public company on November 1. On December 5, we closed a sizable acquisition that scales our Construction Products Group. We also divested two small business units in which we did not believe we could be competitive, and our fourth quarter financials reflected year-over-year improvement across key metrics.
Additionally, as we look ahead, we're seeing positive trends in several of our businesses that support our confidence in Arcosa's growth prospects. Arcosa entered the public markets positioned for growth. We have a very strong balance sheet providing the resources to fund future expansion. We have a hand-picked management team that has a history of working well together and that is focused and incentivized, and we are operating with a lean corporate structure that gives us the flexibility to capitalize on growth opportunities.
Thanks to those attributes, we have been able to hit the ground running, executing on several of our strategic priorities, which are shown on Slide No. 5. First, we move forward on the goal of growing Construction Products with the December acquisition of Oklahoma-based ACG Materials. This is a company that we know well, and the transaction has been strategically important in several ways.
It adds significant scale to both the Specialty Materials and the aggregates businesses, transforming each of them into competitive growth platforms. It gives us further end market and geographic diversification. It brings technical expertise in Specialty Materials applications that we can leverage in other parts of our businesses, and we have an active pipeline of bolt-on acquisition opportunities that we are currently exploring. On Slide No.
6, we included the information that we provided at the time of the ACG acquisition. It is important to emphasize the geographic and end market diversity that ACG brings to Arcosa. As we spend more time with the ACG management team, it is very clear that their Specialty Materials expertise creates products with high barriers to entry, as well as long-term relationship with customers. It is also exciting to see the entrepreneurial spirit that the ACG team brings to the table.
The integration is going very well, and I'm convinced that ACG will be a great addition to Arcosa. Going back to the first stage priorities on Slide No. 7, in the Energy Equipment segment, we have taken actions that are expected to improve margins, applying lean manufacturing processes to our utility structure business and restructuring our Mexican operations. While a few months do not make a trend, I am encouraged, as we start 2019, by the early signs of progress we are seeing.
The new management team in the transmission business has taken positive actions. Mexico is in the middle of a nice turnaround, and our storage tank business is building momentum. This progress is taking place, thanks to the enhanced focus on the Energy Equipment business as part of Arcosa, a renewed management team and a culture of performance and accountability we're building, and that is reflected in our compensation structure. I look forward to sharing with you the details on our progress.
In the transportation segment, we continue to capitalize on the ongoing market recovery in the barge business and increased demand for railcar components. In the fourth quarter, we announced the reopening of our barge facility in Madisonville, Louisiana. This plant is on track to deliver its first barge in the middle of this year, and we are encouraged by the level of quoting activity that's under way. At the same time, in the rail components business, we're seeing early signs of success in expanding our customer base.
We're starting to win trial orders for some of our components from customers that would not have bought from us even if we're still part of Trinity. Lastly, as a new company, we have the ability to create a new corporate culture. Over the last several months, we have significantly flattened the organization, managing with a small corporate office that enables past decision-making and leads to a very agile organization that can react quickly to changing market dynamics. We're pleased with the progress that we have made over the past several months on each of our stage one priorities, while at the same time producing fourth quarter results that reflect positive momentum heading into 2019.
Our performance in the fourth quarter demonstrated the benefits of serving multiple infrastructure markets, as contributions from the transportation and energy segments more than offset the impact of challenging weather conditions on the construction products segment. Moving into the outlook for 2019, which is found on Slide #8, this will be Arcosa's first full year of operations, and the midpoint of our consolidated EBITDA guidance range for 2019 represents 18% growth compared to 2018. Keep in mind this is after absorbing additional costs tied to public company expenses and lower pricing on some rail component supply agreements. We expect 2019 growth to be driven by all three Arcosa business segments.
In construction, market conditions heading into 2019 look favorable, with expanded state and local government budgets for infrastructure spending and strength in the private sector as well. We believe Arcosa Construction Products business is well-positioned in high-growth areas. As we have discussed in the past, we are facing additional competition in some of our core natural aggregates regions which is normal. And we expect to continue to have strong margins which are more in line with our industry peers.
At the same time, we will have the full year benefit of the ACG acquisition. And as I mentioned earlier, ACG brought with it an attractive pipeline of potential bolt-on acquisitions. We would be very disappointed if we did not complete at least one by the end of this year. We believe that Arcosa has a competitive advantage in making accretive acquisitions in this space as we can target smaller candidates and can offer them a level of independence and support that is not efficient for the very large industry players.
In the Energy Equipment market, conditions are more mixed, but look promising overall for 2019. In wind towers, our backlog is solid, giving us good visibility for the next couple of years. We were pleased to receive an order for $38 million in the fourth quarter for delivery in 2019. But as we approach the end of the phaseout of the production tax credit, there is uncertainty in the market.
The trends toward clean energy continue to be strong, and wind is now a competitive energy source on its own merit. So the fundamentals for the industry are strong in the long term, but the industry will have to learn how to operate within a different market environment. In the utility structures business, quotation activity is steady, reflecting solid demand for steel posts and lattice towers. Here, though, our focus is on margin expansion through manufacturing and operating efficiencies.
As I mentioned earlier, we're seeing some early signs of success in this business. This gives us confidence that we are on the right track. And the storage tank business backlogs are up, driven by strong demand from residential, commercial and agricultural customers and then narrowly about significant pickup in our Mexican operations. There is no question that fuel shortages in Mexico require additional storage and transport capacity, and we believe Arcosa is well-positioned to take advantage of this new source of demand.
Now to transportation, where market recovery sent in our barge business continue to materialize, underpinning our confidence in this segment's expected 2019 EBITDA growth. Our customers, the barge operators, have seen higher spot rates as demand builds. And at the end of the fourth quarter, we had a book-to-bill ratio of 1.4, the fourth consecutive quarter above one. As the largest barge manufacturer in the country, we are preparing to be in the right position to capitalize on a cyclical turnaround in this market.
Additionally, our rail components business has benefited from the current high backlog levels for the North American railcars, and the fact that as an independent company, we are in a position to significantly expand our customer base. In summary, we are very enthusiastic about the positive trends in our businesses and confident in the ability of our operating groups to execute on growth and margin expansion opportunities in their sectors. I will now turn over the call to Scott Beasley, our CFO, for a financial review. Scott?
Scott Beasley -- Chief Financial Officer
Thank you, Antonio, and good morning, everyone. Today, I'll cover our fourth-quarter results by segment, and then talk about several key financial themes that we addressed at Investor Day. Slide 9 shows that, as Antonio noted, we finished the year with solid momentum heading into 2019. Both revenues and adjusted EBITDA were higher for the quarter.
Now let me give more color on each segment, starting with Slide 10. Construction Products revenues of $65.6 million increased 2% in the fourth quarter, but there were two items that made the adjusted EBITDA margin of 19% unusually low. First, our results include about a month of contribution from the ACG Materials acquisition, which closed on December 5. The acquisition contributed roughly $12 million of revenue to the quarter, but only a modest amount of adjusted EBITDA, as we incurred transition costs during the seasonally slow time period.
We still expect the adjusted EBITDA margins for ACG to be in the 20% range for the full year of 2019, consistent with its performance at the time of purchase. Second, and more impactful, we had the wettest October on record in the Dallas-Fort Worth region which was followed by additional heavy rainfall in November and December. As a result, adjusted EBITDA for the segment was $12.4 million, down $3.9 million from the previous year. We estimate that weather was responsible for roughly 70% to 80% of the year-over-year decline, with the pricing pressure that we've discussed before and the addition of ACG contributing to the balance.
Importantly, in January, when we had normal weather, we were pleased to see the business return to more normalized revenue and EBITDA trends. We remain optimistic about the short- and long-term fundamentals of the business and are excited by the benefits that ACG will bring to our construction products segment. Please turn to Slide 11. Energy Equipment revenues of $207 million increased 7% over the previous year.
Adjusted EBITDA of $23.2 million was up slightly, and we expect to produce margin improvements from 2018's full-year adjusted EBITDA margin of 10.4%. We also signed a $38 million wind tower order in the quarter, bringing our backlog in wind towers and utility structures to $633 million at year end. Please turn to Slide 12. Transportation products revenues were up 12% year over year to $102.1 million.
Adjusted EBITDA of $17 million increased 31% year over year, driven by higher barge volumes, as well as operating efficiencies in both our barge and components businesses. We received $67 million of orders in the quarter for our barge business, and our backlog ended the year at $230 million, up roughly $20 million sequentially, further underscoring the recovery of the business. The orders we received in the quarter were predominately for liquid barges, but we have started to see some increase in inquiry levels for drive barges as well. High steel prices continue to be a restraining factor for new drive barge orders, but we are encouraged by the increase in inquiries.
On Slide 13, I'll elaborate on several other items for the quarter. Our corporate costs of $7.4 million were below our 2019 expected run rate of $12 million to $13 million per quarter. We were an independent company for only two months of the quarter and had several one-time benefits related to the separation. Second, our fourth-quarter effective tax rate was unusually low, primarily due to the sale of the two businesses within Energy Equipment.
For the full-year 2019, we anticipate a tax rate of approximately 25%. Finally, as shown in our earnings release, our receivables increased by approximately $130 million versus the end of 2017. This increase was driven by several factors including the addition of ACG, sales to our former parent company that now count as receivables and additional working capital in our barge and wind towers businesses that extended from 2018 into 2019. This AR continues to be paid within terms and gives us no cause for concern.
Now I'd like to turn back to three key themes from Investor Day: growth in 2019; our strong balance sheet and cash flow generation and our disciplined capital allocation strategy. On Slide 14, I'll discuss our 2019 outlook. We increased our revenue and EBITDA guidance for 2019, reflecting the ACG Materials acquisition. Our new guidance ranges are revenue of $1.7 billion to $1.8 billion and adjusted EBITDA of $215 million to $225 million compared to our previous EBITDA guidance of $180 million to $195 million.
At the time of acquisition, we reported that ACG had generated $32 million of adjusted EBITDA in the previous 12 months. We still expect the business to perform at that level for the full year of 2019. As a reminder, in 2019, we are facing roughly $30 million of headwinds that we did not face in 2018, which include incremental public company costs and reduced margins at our core components business related to long-term sales agreements. Those headwinds are included in our guidance.
Let me share a few points on the expected business cadence throughout the year. The first quarter is expected to be our lowest quarter of the year in terms of revenue and EBITDA accounting for roughly 20% of our annual EBITDA. First, the first and fourth quarters are seasonally slow in construction products, and our first quarter of 2018 had very strong pricing that has since returned to more normalized levels. Second, our backlog of production in transportation products will accelerate through the year as our barge business ramps up.
Third, we experienced a flood this week at our Missouri barge plant on the Mississippi River due to heavy rains in the Midwest. We do not expect significant damage to the plant or a material financial impact for the year, but it will likely push out some barge deliveries from Q1 into the following two quarters. Finally, our Energy Equipment segment had a very strong first quarter in 2018. So that creates a difficult comparable quarter, but we do expect overall growth in Energy in quarters two, three and four and for the full year.
Overall, it's important to note that we expect revenue and EBITDA growth in each of our three segments for the full year. I'll finish on Slide 15 and talk through a few elements of cash flow and our capital allocation strategy. We expect maintenance capital expenditures to be in the $60 million to $65 million range, now including ACG. We are planning for an additional $10 million to $15 million of growth CAPEX such as aggregate reserve acquisitions or robotic technology to improve our quality and throughput, but these investments are more variable in size and their timing is difficult to predict.
These CAPEX projects are approved one by one and are ranked against all of our other organic and acquisition opportunities. We have a solid amount of organic growth CAPEX in the pipeline, but each project must compete for the capital available. We project working capital to be neutral to slightly higher for the full year. Our goal is to reduce working capital in our other businesses to help fund the increase in barge working capital, and we have made working capital a key part of the 2019 incentive plans for several of our businesses.
Finally, we expect cash taxes in the $15 million to $20 million range. Our balance sheet remains strong. We closed the year with roughly $99 million of cash and $184 million of long-term debt, making our net debt to 2019 EBITDA ratio less than 0.4. With our strong balance sheet and cash flow generation in 2019, we remain focused on efficiently allocating capital across three areas: organic investments, acquisitions and return of capital to shareholders.
During the fourth quarter, we made progress on all three fronts. Our largest use of capital in 2018 went toward acquisitions, where we deployed $333 million primarily on ACG. We are following the disciplined capital allocation process that I discussed at Investor Day. ACG is an example of our strategy to use acquisitions to improve our overall return on invested capital.
We paid roughly 10 times EBITDA multiple for the business, but we expect to follow it up with lower, multiple bolt-on acquisitions, high-return organic investments to expand capacity and add new specialty products and participation in strong specialty end market growth. We expect it to be a solid platform that improves our long-term returns on invested capital. Turning to return of capital to shareholders, we repurchased roughly $3 million worth of shares in December at an average price of $24 per share, leaving approximately $47 million under our current authorization. We also initiated a quarterly dividend of $0.05 per share that was paid in January.
We see both our dividend and buyback authorization as valuable tools to return capital to shareholders. I'll now turn the call back over to Antonio for a few closing remarks.
Antonio Carrillo -- President and Chief Executive Officer
Thank you, Scott. In summary, I would just like to review Slide 16, the long-term vision that we have for Arcosa and that we spoke about on our Investor Day in October and in subsequent investor conference and events. First, while our focus remains on stage one priorities, we continue to work toward making progress on our long-term vision, which includes growing in attractive markets, where we can have sustainable competitive advantages; reducing the cyclicality and complexity of Arcosa; and improving our long-term returns on invested capital. I would like to add one more, and that is developing and implementing ESG programs across the entire organization.
We are about to embark on an ESG materiality study that will help us understand our different stakeholders' view around D&C priorities in the different business. With this understanding, we will be able to make -- we will be able to develop our sustainability framework and set specific goals for each one of our priorities. We are in the early stages in this process, but we wanted investors to know that this will be a priority for us going forward. And to close, I want to recognize the tremendous accomplishments of the Arcosa corporate operating teams in getting us where we are today.
Four months ago, we were a fragmented group within a large company. Today, we're an independent publicly traded company we've defined for our groups that are all pulling in the same direction, up. This has taken an incredible effort on the part of all the people at Arcosa, and I'm proud to lead such a professional and hard-working group of individuals. Operator, now I would like to turn the call over for questions.
Questions and Answers:
Operator
[Operator instructions] And our first question will come from Craig Bibb with CJS Securities. Please go ahead.
Craig Bibb -- CJS Securities -- Analyst
Hey, guys. Good start to being a public company. I was hoping to get more details on the ACG acquisition. The company -- obviously, the regular ag business, I would think most investors understand pretty well.
But they have some real nichey Specialty Materials operations. Could you kind of walk through on maybe not on all of them, but the ones that are most interesting, and kind of the drivers of demand there?
Antonio Carrillo -- President and Chief Executive Officer
Craig, this Antonio. If you look at Page 6 in the presentation that we have, you can see that we have -- it has different niche markets, as you call them. So let me walk through some of them. On the energy infrastructure, they have mines, both in the Texas and Oklahoma mainly focused on the drilling platforms and selling material for roads and for drilling pads and all the infrastructure required around fracking, no sand for fracking, but just infrastructure around that type of activity in Texas and Oklahoma.
And it's an interesting platform because it's also movable infrastructure. So as different regions in the states are developed, they can move around their infrastructure to follow those projects. So it's an interesting activity. On the agricultural side, they have two sides to it.
One is they sell some of their gypsum directly for agricultural uses, fertilizer and other applications, and they also make something called prills, which is a combination of gypsum with other materials that they have formulations for that serve for different types of crops and activities related to the agriculture. On the building products, they sell gypsum materials for flooring. And to give you a sense of what they do, each one of their quarries has different chemical and mechanical properties. And they have a very interesting lab, where they process the gypsum and add all sorts of additives to create the properties that specific customers require, and they also sell a significant amount of plasters in some of their products.
So they have two sides of the, let's say, of the equation. They have their mines, where they sell directly to traditional infrastructure plays, but they also use their own mining -- let's say, proceeds or the material coming from their mines to process and add value and sell into different niche applications. I hope I gave you some sense of what they're doing.
Craig Bibb -- CJS Securities -- Analyst
Any other niche applications more attractive than the others or especially attractive? And is that where we'll see the bolt-on deals?
Antonio Carrillo -- President and Chief Executive Officer
I think most of the applications are attractive. I think they have -- if you look at the regions where they are, each one of the mines is set up for different applications. So the West is more an agricultural play. On Texas and Oklahoma, it's more an energy play.
But I think that's one of the things that we like about the company, that they have this expertise of, let's say, setting a foot on in one specific market and then expanding the applications in that region. So that's what we're looking forward with them on buying some bolt-on acquisitions in the regions and also expanding those niche capacities.
Craig Bibb -- CJS Securities -- Analyst
OK. And then I'll turn it over after this question, but wind towers, I thought it was reassuring that you were able to pick up a large new order at the end of last year. So you have a big backlog there to work through. At what point will you start to see orders and have kind of better certainty of how this plays out after the production tax credits burned off?
Antonio Carrillo -- President and Chief Executive Officer
Well, I think that's a good question. As you know, the production tax credits has been winding down for the last few years. And if you look at the wind industry, even with a much smaller production tax credit last year, there was significant orders in the industry. And that's why I think, as I mentioned in my remarks, wind is already a competitive source of energy on its own merit.
But people are starting to figure out how to work in this new environment and what will happen when there's no production tax credits. So I don't want to give you a sense of timing yet. I think we are positive on the long-term outlook of the industry. And we have a good backlog to, let's say, carry us through this time of uncertainty until we have more clarity on when the orders will start coming in.
Operator
Our next question will come from Bascome Majors with Susquehanna.
Bascome Majors -- Susquehanna International Group -- Analyst
Thanks for taking my question, guys, and congrats on a positive and constructive outlook here. Scott, I wanted to follow up a little bit on some of your commentary around the cadence of EBITDA during the year. Clearly, there are some unique headwinds to the first quarter, but you're pretty optimistic about the pace of growth in the second, third and fourth. And I know, seasonally, normal situation would be that 2Q and 3Q would be much stronger than 1Q and 4Q, but you've also got this sequential ramping up in your barge business that starts and maybe can you kind of talk through the other quarters' seasonality, directionally at least, one by one, and give us in some sense of how the barge ramp's positive contribution plays with the normal kind of negative 1Q, 4Q contribution for the construction business seasonally?
Scott Beasley -- Chief Financial Officer
Yes. Bascome, thanks for the question. You're right. Let me take it segment by segment.
So you're right. In Construction Products, seasonally, one and four are the lowest by far. And then in Q1, we had the difficult comp with pricing in 2018. So I think you're on the mark there.
In Transportation Products, you will see a pretty big ramp-up through the year. Q1 will be the lowest, but you'll see a pretty significant ramp-up in Q2, three and four, and it should accelerate through that year with each quarter improving sequentially. And then in Energy Equipment, roughly flat for the year. We said the Q1 comp will be a challenge because of the strength of Q1 in 2018.
But with our backlog in wind towers, utility structures and the strong backlog in storage tanks, we expect to be relatively consistent throughout the year in terms of revenue and in margin. As some of these margin improvement initiatives take hold, margin should likely improve a bit each quarter through the year.
Bascome Majors -- Susquehanna International Group -- Analyst
And can you talk to us a little bit, I mean, the barge business running today, where it is, versus under Trinity $100 million plus in EBITDA, not that long ago? Can you talk a little bit about where you feel the exit rate for 2019 will be on that and what that suggests about the backlog you have to take and how you feel about 2020?
Scott Beasley -- Chief Financial Officer
Yes. That's another good question. So I think it's too early to tell exactly what 2020 looks like. We have a strong backlog that extends from '19 and then some orders that are in 2020.
We're still seeing how the dry bars market is shaping up. Like I said, steel prices are a bit of a restraining factor, but the inquiries are encouraging. So if those trends continue, and if we continue the strong liquid barge increase in order levels, we should exit '19 into '20 at a much stronger rate than we have in Q1. The additional note, I'd say, we talked about very significant revenue growth year over year in the barge business.
We've had several quarters of 1.4, 1.5, some even two book to bill. So revenue should grow very significantly in the, call it, 70% to 80% range year over year. But margin will be slower. We have the kind of two-margin headwinds of we'll be delivering orders in the first few quarters that we're taking in a weak pricing environment in early 2018, so that restrains margin a bit in the first half of the year.
And then secondly, we have the start-up costs related to, not only our reopened facility, but then the ramp-up of our other two operating facilities. So we should see margin improve sequentially throughout the year, but still not grow at the pace that revenue will grow for the year.
Bascome Majors -- Susquehanna International Group -- Analyst
And last one for me, then I'll hand it off. Just kind of back of the envelope on your EBITDA cash taxes, working capital and CAPEX guidance, it's looking like you kind of expect free cash flow to be maybe $100 million, even a little more this year. Is that a fair assumption? Or is that -- are we missing something in that math?
Scott Beasley -- Chief Financial Officer
No. I think that's a fair assumption. With the components that I described in my script, I think that that's the right neighborhood.
Bascome Majors -- Susquehanna International Group -- Analyst
All right. Well, thank you very much.
Operator
Our next question will come from Brent Thielman with D.A. Davidson. Please go ahead.
Brent Thielman -- D.A. Davidson -- Analyst
Great. Good morning. Nice quarter. I want to follow up on the wind and utility side.
It's obviously upbeat commentary, but I guess, your backlog's been under pressure relative to prior year. I mean, are you nearing a point where you think that backlog is close to stabilizing? And is it your expectation that push in the business can grow in '19?
Antonio Carrillo -- President and Chief Executive Officer
This is Antonio, Brent. Each one of our customers has different ways of managing their business. And the reason the backlog is coming down is we signed a large order a few years ago, and this order is covering our customers' needs for a certain period of time. We have other customers that place orders more on a project-by-project basis.
So I think the backlog is really not an indication of the industry itself at the moment, it's more an indication of different customers' ways of managing their business. And so I would say what I said before. I think what's important is, I think, that the industry is healthy. The industry has a -- wind is a competitive energy source.
There is going to be additional orders placed in the industry, I'm sure, over the next years or so. And it will depend -- but the industry's changing, and I'm not sure how the -- our different customers will be placing orders if it's going to be based on long-term contracts, if it's going to be more on an order by project-by-project basis, etc. So I think the backlog will depend more on that side than on the industry itself.
Brent Thielman -- D.A. Davidson -- Analyst
OK. And then, Antonio, in your opening comments, you made some remarks regarding competitive issues you are seeing in the Construction Products Group. Could you elaborate on that a little bit more?
Antonio Carrillo -- President and Chief Executive Officer
Yes. So if you go back in time, we were very concentrated in certain regions here in Texas. And that concentration in high-growth areas, as I mentioned, brings very, very, very attractive margins in some of our products. And that attracts competition, and that's why I said competition is normal and it's good.
And we still have a great position. We have good demand factors. We're in great regions, and the margins are going to be very good. They will be just, let's say, not abnormally high.
They will be more like our industry peers. So it's not something that is scaring us. Or we didn't want -- we don't want to sound alarms about our margins. It's more -- it's normal to have competition in high-growth areas, and we're good with that.
Brent Thielman -- D.A. Davidson -- Analyst
OK. And then last one for me, on inland barges. It's encouraging to see the interest levels perking up. I was curious, does the margin profile materially vary between dry and liquid? Is this really more of kind of an operating leverage story in terms of margins recovering?
Antonio Carrillo -- President and Chief Executive Officer
So I think there's not a huge margin difference between liquid barges and dry barges. A lot of the improvement in margins throughout the year is the conditions in which the order was placed. So like I said early in the year, we'll be delivering orders that we're taking in a weak pricing environment. Now regardless of dry or liquid, the pricing environment is better than that.
And then secondly, as you noted, it's improved operating leverage as we get our plants ramped up, particularly our third facility in Madisonville, Louisiana. We should see improvement in margins throughout the year.
Brent Thielman -- D.A. Davidson -- Analyst
Great. Thank you.
Operator
Our next question will come from Justin Bergner with G. Research. Please go ahead.
Justin Bergner -- G. Research -- Analyst
Good morning, Antonio. Good morning, Scott. A few questions here. Just wanted to start off.
I thought I heard you say that revenue in barges would be up 70% to 80%. Was that for the sort of full year or more the exit rate in the fourth quarter of '19?
Antonio Carrillo -- President and Chief Executive Officer
So that would be full-year '19 versus '18. So we have -- if you kind of do the backward math of -- we had a number of quarters that were 1.4, 1.5, 2.0 book to bill. And so just playing those into 2019, you're looking at a very significant revenue growth in that range.
Justin Bergner -- G. Research -- Analyst
Great. Thanks for confirming. And then secondly, the corporate costs, just to verify, the $12 million to $13 million quarterly run rate for corporate costs is still valid looking into '19, notwithstanding the low corporate in 4Q. Any sort of thoughts on where you can bring that down looking past 2019?
Scott Beasley -- Chief Financial Officer
Yes. That's a good question. So first, you're right, $12 million to $13 million is our expected run rate for 2019 per quarter. And it's probably more like $13 million in the first half and $12 million in the second half, as we're able to come off some Transition Services Agreements.
I think it's too early to say what 2020 looks like. I think you'll be closer to the $12 million and hopefully even reduce it lower than $12 million per quarter into 2020. A big part of our incentive plans this year on the corporate side is reducing our corporate SG&A. So it's something that everybody's targeting, but I think it's too early to give a specific number for 2020.
Justin Bergner -- G. Research -- Analyst
OK. Understood. And then in rail components, you mentioned some orders from other customers. Are those new customers or expanded wallet with existing business from non-trending customers in any sort of way to quantify how big or how much larger that book of business has become in recent months?
Antonio Carrillo -- President and Chief Executive Officer
Yes. This is Antonio. Let me give you some color, Justin. I think the reason we wanted to mention it is, one of the -- part of the rationale of keeping -- letting these businesses go to Arcosa and the spin-off is the fact that there's a market out there that has potential.
And when you are a competitor to some of the other industry players, they will not place an order with you. So we've been able to get some trial orders from some of, let's say, other industry players. But it's early. We are getting trial orders.
Most of them have long-term agreements for their supply. So I think this is more a 2020 and '21 play and more a medium- to long-term good news that we are building this new customer base and we're developing new customers. And to be honest, I think it's also an indication that it was a good decision to leave this business to develop other markets.
Justin Bergner -- G. Research -- Analyst
Understood. No. Good luck with that. That sounds promising.
And then just lastly, I guess, the number of share repurchases you did in the quarter was pretty modest despite the stock being depressed around the time that the share repurchase authorization was announced. Should I infer or should we infer from that that the preference for capital allocation, sort of is bolt-on acquisitions, and that repurchases will sort of take effect, not just based on the share price, but based on not having bolt-on acquisitions to absorb all your cash flow?
Scott Beasley -- Chief Financial Officer
Yes. This is Scott. I'll take that, Justin. So I guess, I wouldn't infer too much from the December cadence because the approval was only in early December.
And so we only had about two to three weeks to execute it. And so $3 million in that time period we felt like was the right move. We got a $50 million authorization from the board over two years, and we would expect to use it when appropriate. And we're always trying to balance the use of capital in that way versus organic investments that I talked about in acquisitions.
So we had the authorization. And when it's appropriate, we will use it.
Justin Bergner -- G. Research -- Analyst
Great. Thanks for taking all my questions.
Scott Beasley -- Chief Financial Officer
Thanks, Justin.
Operator
Our next question is a follow-up from Craig Bibb with CJS Securities.
Craig Bibb -- CJS Securities -- Analyst
I just wanted to kind of circle back to the improvements you're trying to achieve with margins at the Energy Equipment business. So it sounds like the focus was primarily, be as efficient making utility structures as you are with wind towers. But how is pricing in the industry? What kind of volume growth do you expect in 2019 and 2020? And I think the size of the structures has a big impact on margins. What are you seeing there?
Antonio Carrillo -- President and Chief Executive Officer
Yes. This is Antonio. So the Energy Equipment business has, I would say, three components to it. One is the wind towers, which is operating very well.
And it's holding its margins, and it's doing a really good job. As you mentioned, we're moving the program that has been successful there into transmission, and we started at the end of last year implementing that. And we're going to be working throughout the year and making sure that that takes place. And it has the two sides to it.
One, I think there's good demand in the industry. We're seeing good demand for our products. So demand is there to keep us busy for the year. What we're trying to do is increase our throughput.
And as we increase our throughput, we can capture more and more demand, and we can also be more efficient as we produce it. So I think the main focus is on increasing our throughput in our facilities, optimizing our footprint and really, let's say, using our resources to the full scale that we have. And I think there's good trends happening there, and we have a good team that's working on it. So throughput is a key in our transmission business.
The third business is the tank business. And the tank business, I would say, is a business that we have not been focusing it for a while. We have two sides to it, the Mexico side and the U.S. side, and we're seeing good growth on both now that we are focusing on it.
Their margins were not where they needed to be. And we are also working -- as I mentioned, we restructured our Mexico business. And we're seeing a very nice turnaround, and we expect a big turnaround for our business this year. So margins are not only in terms of improving in transmission, but also businesses that were not performing or, frankly, let's say, pulling us down.
We expect them to start helping us pull up. And those are the three sides of this transformation we're trying to do in Energy.
Craig Bibb -- CJS Securities -- Analyst
OK. And I think in your comments, you mentioned that fuel shortages in Mexico could increase demand for pipeline and storage. Could you kind of explain to us how that would play out?
Antonio Carrillo -- President and Chief Executive Officer
Yes, absolutely. So if you read the news about what's going on in Mexico, there's fuel shortages for gasoline and other products. Most of the news are based on gasoline, but what's happening in gasoline basically extends to many other products. So there's demand for additional storage.
Mexico has less than five days of gasoline storage in their system, and they need more gasoline storage. And there's now private players working on that. So there's large global companies building storage facilities and bringing gasoline into Mexico and selling directly to the customer. If you went to Mexico five years ago, all the gas stations you saw were Pemex.
Now there's seven or eight or nine brands that are selling gasoline. And those players will require their own gasoline, will import some of their own gasoline. So that brings additional capacity and needs. And we are in the process of building our first terminals, and there's also some additional demand that we're seeing from some of our traditional customers that require additional propane moves.
And we are building some additional transport. So it's not something that will take hold immediately, but I think this is a good trend and a good new source of demand for us.
Craig Bibb -- CJS Securities -- Analyst
OK. I mean, that was all extremely bullish, what you just laid out. I mean, can you give us an order of magnitude of how high is up over time as things play out?
Antonio Carrillo -- President and Chief Executive Officer
Our business in Mexico for Arcosa is not very large. It's about 10% of our revenue. So I want to give you a guidance on how big it's going to be. But if it grows, it's going to be a nice growth for the 10% that we have in Mexico.
That is not going to be a needle-mover for the total company. I think what we are trying to do is to grow the company, but doing a lot of small things that all of them will add to a movement for the whole company.
Operator
And there are no further questions at this time. So I'll turn it back to Gail Peck for closing remarks.
Gail Peck -- SVP, Finance and Treasurer
Thank you, Bree. Thank you, everyone, for joining us today. We look forward to speaking with you again next quarter.
Operator
[Operator signoff]
Duration: 48 minutes
Call Participants:
Gail Peck -- SVP, Finance and Treasurer
Antonio Carrillo -- President and Chief Executive Officer
Scott Beasley -- Chief Financial Officer
Craig Bibb -- CJS Securities -- Analyst
Bascome Majors -- Susquehanna International Group -- Analyst
Brent Thielman -- D.A. Davidson -- Analyst
Justin Bergner -- G. Research -- Analyst
More ACA analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Acacia Mining (NYSE: ACA) Q4 2018 Earnings Conference Call Feb. 28, 2019 8:30 a.m. Davidson -- Analyst Justin Bergner -- G. Research -- Analyst More ACA analysis This article is a transcript of this conference call produced for The Motley Fool. This progress is taking place, thanks to the enhanced focus on the Energy Equipment business as part of Arcosa, a renewed management team and a culture of performance and accountability we're building, and that is reflected in our compensation structure. | Acacia Mining (NYSE: ACA) Q4 2018 Earnings Conference Call Feb. 28, 2019 8:30 a.m. Davidson -- Analyst Justin Bergner -- G. Research -- Analyst More ACA analysis This article is a transcript of this conference call produced for The Motley Fool. With our strong balance sheet and cash flow generation in 2019, we remain focused on efficiently allocating capital across three areas: organic investments, acquisitions and return of capital to shareholders. | Acacia Mining (NYSE: ACA) Q4 2018 Earnings Conference Call Feb. 28, 2019 8:30 a.m. Davidson -- Analyst Justin Bergner -- G. Research -- Analyst More ACA analysis This article is a transcript of this conference call produced for The Motley Fool. Adjusted EBITDA of $17 million increased 31% year over year, driven by higher barge volumes, as well as operating efficiencies in both our barge and components businesses. | Davidson -- Analyst Justin Bergner -- G. Research -- Analyst More ACA analysis This article is a transcript of this conference call produced for The Motley Fool. Acacia Mining (NYSE: ACA) Q4 2018 Earnings Conference Call Feb. 28, 2019 8:30 a.m. The additional note, I'd say, we talked about very significant revenue growth year over year in the barge business. |
35463.0 | 2019-01-18 00:00:00 UTC | The Zacks Analyst Blog Highlights: Taylor Morrison, Gibraltar Industries, Armstrong Flooring, Lennox International and Arcosa | ACA | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-taylor-morrison-gibraltar-industries-armstrong-flooring | nan | nan | For Immediate Release
Chicago, IL -January 18, 2019 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Taylor Morrison Home Corporation TMHC , Gibraltar Industries, Inc (ROCK), Armstrong Flooring, Inc. AFI , Lennox International Inc. LII and Arcosa, Inc. ACA .
Here are highlights from Thursday's Analyst Blog:
Top 5 Stocks to Buy Now on Solid Homebuilder Confidence
Homebuilders' confidence increased in January, providing some respite after two months of sharp declines to the lowest level in more than two years. The gradual decline in borrowing costs over the past few weeks along with strong job market has been boosting builders' sentiment.
Per the National Association of Home Builders or NAHB/Wells Fargo Housing Market Index (HMI), the confidence level of the nation's homebuilders grew two points to 58. Notably, all three HMI components - current sales, future sales and buyer traffic - rose from the prior month. The index measuring current single-family home sales increased two points to 63. Home sales prospects for the next six months grew three points to 64 and buyer traffic surged one point to 44.
Declining Mortgage Rates a Positive
Per Freddie Mac's Primary Mortgage Market Survey, in the week ending Jan 10, 2019, the fixed rate mortgage average came in at 4.45%, a decline of 6 basis points from Jan 3, 2019. Notably, the said rate was lowest in the past nine months.
Meanwhile, mortgage applications have also been increasing in response to the gradual decline in borrowing costs. As per the recent Mortgage Bankers Association's ("MBA") weekly Mortgage Applications Survey, applications volume increased 13.5% in the week ending Jan 16, 2019 from one week earlier.
In the words of MBA Senior Vice President and Chief Economist, Mike Fratantoni, "Mortgage applications rose to their strongest level in years last week, with purchase applications rising to the highest since 2010, and refinance applications up to their highest level since last spring,"
Apart from the abovementioned much-needed housing tailwinds, the unemployment rate was 3.9% last month. Unemployment rate was 2 points below the December 2017 level.
The positive momentum that the housing industry is currently experiencing is reflected in its share price performance. The Zacks Building Products - Home Builders industry has outperformed the broader S&P 500 in the past six months. The industry has collectively gained 9.9% against the S&P 500 Index's 5.6% decline.
Lower Input Costs to Boost Housing Market
Higher construction costs have been putting pressure on the bottom lines of many homebuilding companies. Nonetheless, per the Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data released on Jan 15, 2019, construction input prices declined 1.7% in the month of December from November. Notably, non-residential construction prices fell 1.6% month over month. Although rising wages and input prices have been weighing on builders' sentiments over the past several quarters, the current data is reinstating investors' lost confidence.
5 Top Construction Picks
In view of the aforementioned positives, we have selected five companies that investors may choose to bet on. We have chosen the stocks with the help of the Zacks Stock Screener. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Taylor Morrison Home Corporation currently carries a Zacks Rank #2. The Zacks Consensus Estimate for this Scottsdale, AZ based homebuilder for 2019 earnings is pegged at $2.63 per share, indicating 18.5% growth year over year.
Gibraltar Industries, Inc. currently sports a Zacks Rank #1. The Zacks Consensus Estimate for 2019 earnings of this leading manufacturer and distributor of building products is pegged at $2.43 per share, indicating 17.2% growth year over year.
Armstrong Flooring, Inc. currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2019 earnings of this designer and manufacturer of flooring solutions company is pegged at 53 cents per share, indicating 23.6% growth year over year.
Lennox International Inc. currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2019 earnings of this provider of climate control solutions is pegged at $12.28 per share, projecting an impressive 30.7% growth year over year.
Arcosa, Inc. , a manufacturer which serves infrastructure-related products and services to construction, energy and transportation markets, currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2019 earnings is pegged at $1.8 per share, indicating 3% growth year over year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: Taylor Morrison Home Corporation TMHC , Gibraltar Industries, Inc (ROCK), Armstrong Flooring, Inc. AFI , Lennox International Inc. LII and Arcosa, Inc. ACA . Click to get this free report Lennox International, Inc. (LII): Get Free Report Armstrong Flooring, Inc. (AFI): Get Free Report Taylor Morrison Home Corporation (TMHC): Free Stock Analysis Report Arcosa Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Nonetheless, per the Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data released on Jan 15, 2019, construction input prices declined 1.7% in the month of December from November. | Stocks recently featured in the blog include: Taylor Morrison Home Corporation TMHC , Gibraltar Industries, Inc (ROCK), Armstrong Flooring, Inc. AFI , Lennox International Inc. LII and Arcosa, Inc. ACA . Click to get this free report Lennox International, Inc. (LII): Get Free Report Armstrong Flooring, Inc. (AFI): Get Free Report Taylor Morrison Home Corporation (TMHC): Free Stock Analysis Report Arcosa Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. As per the recent Mortgage Bankers Association's ("MBA") weekly Mortgage Applications Survey, applications volume increased 13.5% in the week ending Jan 16, 2019 from one week earlier. | Click to get this free report Lennox International, Inc. (LII): Get Free Report Armstrong Flooring, Inc. (AFI): Get Free Report Taylor Morrison Home Corporation (TMHC): Free Stock Analysis Report Arcosa Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Taylor Morrison Home Corporation TMHC , Gibraltar Industries, Inc (ROCK), Armstrong Flooring, Inc. AFI , Lennox International Inc. LII and Arcosa, Inc. ACA . Here are highlights from Thursday's Analyst Blog: Top 5 Stocks to Buy Now on Solid Homebuilder Confidence Homebuilders' confidence increased in January, providing some respite after two months of sharp declines to the lowest level in more than two years. | Stocks recently featured in the blog include: Taylor Morrison Home Corporation TMHC , Gibraltar Industries, Inc (ROCK), Armstrong Flooring, Inc. AFI , Lennox International Inc. LII and Arcosa, Inc. ACA . Click to get this free report Lennox International, Inc. (LII): Get Free Report Armstrong Flooring, Inc. (AFI): Get Free Report Taylor Morrison Home Corporation (TMHC): Free Stock Analysis Report Arcosa Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Building Products - Home Builders industry has outperformed the broader S&P 500 in the past six months. |
35464.0 | 2019-01-17 00:00:00 UTC | Top 5 Stocks to Buy Now on Solid Homebuilder Confidence | ACA | https://www.nasdaq.com/articles/top-5-stocks-to-buy-now-on-solid-homebuilder-confidence-2019-01-17 | nan | nan | Homebuilders' confidence increased in January, providing some respite after two months of sharp declines to the lowest level in more than two years. The gradual decline in borrowing costs over the past few weeks along with strong job market has been boosting builders' sentiment.
Per the National Association of Home Builders or NAHB/Wells Fargo Housing Market Index (HMI), the confidence level of the nation's homebuilders grew two points to 58. Notably, all three HMI components - current sales, future sales and buyer traffic - rose from the prior month. The index measuring current single-family home sales increased two points to 63. Home sales prospects for the next six months grew three points to 64 and buyer traffic surged one point to 44.
Declining Mortgage Rates a Positive
Per Freddie Mac's Primary Mortgage Market Survey, in the week ending Jan 10, 2019, the fixed rate mortgage average came in at 4.45%, a decline of 6 basis points from Jan 3, 2019. Notably, the said rate was lowest in the past nine months.
Meanwhile, mortgage applications have also been increasing in response to the gradual decline in borrowing costs. As per the recent Mortgage Bankers Association's ("MBA") weekly Mortgage Applications Survey, applications volume increased 13.5% in the week ending Jan 16, 2019 from one week earlier.
In the words of MBA Senior Vice President and Chief Economist, Mike Fratantoni, "Mortgage applications rose to their strongest level in years last week, with purchase applications rising to the highest since 2010, and refinance applications up to their highest level since last spring,"
Apart from the abovementioned much-needed housing tailwinds, the unemployment rate was 3.9% last month. Unemployment rate was 2 points below the December 2017 level.
The positive momentum that the housing industry is currently experiencing is reflected in its share price performance. The Zacks Building Products - Home Builders industry has outperformed the broader S&P 500 in the past six months. The industry has collectively gained 9.9% against the S&P 500 Index's 5.6% decline.
Lower Input Costs to Boost Housing Market
Higher construction costs have been putting pressure on the bottom lines of many homebuilding companies. Nonetheless, per the Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data released on Jan 15, 2019, construction input prices declined 1.7% in the month of December from November. Notably, non-residential construction prices fell 1.6% month over month. Although rising wages and input prices have been weighing on builders' sentiments over the past several quarters, the current data is reinstating investors' lost confidence.
5 Top Construction Picks
In view of the aforementioned positives, we have selected five companies that investors may choose to bet on. We have chosen the stocks with the help of the Zacks Stock Screener. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Taylor Morrison Home CorporationTMHC currently carries a Zacks Rank #2. The Zacks Consensus Estimate for this Scottsdale, AZ based homebuilder for 2019 earnings is pegged at $2.63 per share, indicating 18.5% growth year over year.
Gibraltar Industries, Inc.ROCK currently sports a Zacks Rank #1. The Zacks Consensus Estimate for 2019 earnings of this leading manufacturer and distributor of building products is pegged at $2.43 per share, indicating 17.2% growth year over year.
Armstrong Flooring, Inc.AFI currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2019 earnings of this designer and manufacturer of flooring solutions company is pegged at 53 cents per share, indicating 23.6% growth year over year.
Lennox International Inc.LII currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2019 earnings of this provider of climate control solutions is pegged at $12.28 per share, projecting an impressive 30.7% growth year over year.
Arcosa, Inc.ACA , a manufacturer which serves infrastructure-related products and services to construction, energy and transportation markets, currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2019 earnings is pegged at $1.8 per share, indicating 3% growth year over year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, Inc.ACA , a manufacturer which serves infrastructure-related products and services to construction, energy and transportation markets, currently carries a Zacks Rank #2. Click to get this free report Lennox International, Inc. (LII): Get Free Report Armstrong Flooring, Inc. (AFI): Get Free Report Taylor Morrison Home Corporation (TMHC): Free Stock Analysis Report Gibraltar Industries, Inc. (ROCK): Free Stock Analysis Report Arcosa Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Nonetheless, per the Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data released on Jan 15, 2019, construction input prices declined 1.7% in the month of December from November. | Click to get this free report Lennox International, Inc. (LII): Get Free Report Armstrong Flooring, Inc. (AFI): Get Free Report Taylor Morrison Home Corporation (TMHC): Free Stock Analysis Report Gibraltar Industries, Inc. (ROCK): Free Stock Analysis Report Arcosa Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Arcosa, Inc.ACA , a manufacturer which serves infrastructure-related products and services to construction, energy and transportation markets, currently carries a Zacks Rank #2. Per the National Association of Home Builders or NAHB/Wells Fargo Housing Market Index (HMI), the confidence level of the nation's homebuilders grew two points to 58. | Click to get this free report Lennox International, Inc. (LII): Get Free Report Armstrong Flooring, Inc. (AFI): Get Free Report Taylor Morrison Home Corporation (TMHC): Free Stock Analysis Report Gibraltar Industries, Inc. (ROCK): Free Stock Analysis Report Arcosa Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Arcosa, Inc.ACA , a manufacturer which serves infrastructure-related products and services to construction, energy and transportation markets, currently carries a Zacks Rank #2. In the words of MBA Senior Vice President and Chief Economist, Mike Fratantoni, "Mortgage applications rose to their strongest level in years last week, with purchase applications rising to the highest since 2010, and refinance applications up to their highest level since last spring," Apart from the abovementioned much-needed housing tailwinds, the unemployment rate was 3.9% last month. | Arcosa, Inc.ACA , a manufacturer which serves infrastructure-related products and services to construction, energy and transportation markets, currently carries a Zacks Rank #2. Click to get this free report Lennox International, Inc. (LII): Get Free Report Armstrong Flooring, Inc. (AFI): Get Free Report Taylor Morrison Home Corporation (TMHC): Free Stock Analysis Report Gibraltar Industries, Inc. (ROCK): Free Stock Analysis Report Arcosa Inc. (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. Unemployment rate was 2 points below the December 2017 level. |
35465.0 | 2019-01-11 00:00:00 UTC | Arcosa, Inc. (ACA) Ex-Dividend Date Scheduled for January 14, 2019 | ACA | https://www.nasdaq.com/articles/arcosa-inc-aca-ex-dividend-date-scheduled-january-14-2019-2019-01-11 | nan | nan | Arcosa, Inc. ( ACA ) will begin trading ex-dividend on January 14, 2019. A cash dividend payment of $0.05 per share is scheduled to be paid on January 31, 2019. Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment.
The previous trading day's last sale of ACA was $28.71, representing a -17.77% decrease from the 52 week high of $34.92 and a 36.71% increase over the 52 week low of $21.
ACA is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc ( TMO ) and Danaher Corporation ( DHR ).
For more information on the declaration, record and payment dates, visit the ACA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. ACA is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc ( TMO ) and Danaher Corporation ( DHR ). For more information on the declaration, record and payment dates, visit the ACA Dividend History page. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Arcosa, Inc. ( ACA ) will begin trading ex-dividend on January 14, 2019. Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of ACA was $28.71, representing a -17.77% decrease from the 52 week high of $34.92 and a 36.71% increase over the 52 week low of $21. For more information on the declaration, record and payment dates, visit the ACA Dividend History page. | Shareholders who purchased ACA prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of ACA was $28.71, representing a -17.77% decrease from the 52 week high of $34.92 and a 36.71% increase over the 52 week low of $21. Arcosa, Inc. ( ACA ) will begin trading ex-dividend on January 14, 2019. |
35466.0 | 2019-01-06 00:00:00 UTC | Here's What Sliced $31 Billion From UnitedHealth Group in December | ACA | https://www.nasdaq.com/articles/heres-what-sliced-31-billion-unitedhealth-group-december-2019-01-06 | nan | nan | What happened
Shares of UnitedHealth Group (NYSE: UNH) , America's largest health insurer, fell 11.5% in December, according to data from S&P Global Market Intelligence . A federal judge in Texas struck down the Affordable Care Act last month, inciting frightened investors to lop $31 billion from the health insurer's market cap.
So what
The Affordable Care Act (ACA) expanded Medicaid to families that earn between 100% and 138% of the federal poverty level. For those who earn more, it also provides generous subsidies to help pay for premiums, up to a point. For example, a family of four with annual income between $34,638 and $100,400 can receive $14,928 in 2019 to help pay insurance premiums for plans purchased through the ACA marketplace.
UnitedHealth Group tumbled last month because it's been a beneficiary of the ACA. The company serves 6.6 million Medicaid patients and 495,000 customers with marketplace plans.
The ACA really hasn't boosted UnitedHealth Group's customer base that far. The company reported 49 million total customers at the end of September.
Now what
The judge contends that since the penalty for not having insurance has been lowered to $0, the entire set of laws is unenforceable. It's a weak argument, and the Trump administration intends to enforce the ACA pending an expected appeal of the decision. That means there's little chance of any big changes for at least a couple of years.
In the court of public opinion, the ACA's winning by a landslide. A poll the Kaiser Family Foundation conducted in November found three-quarters of the general public and at least a majority of Republicans have a favorable view of the following key provisions:
Subsidies to help with individual plan premiums.
Dependent coverage through age 26.
A marketplace where individuals can shop for insurance plans.
Elimination of out-of-pocket expenses for preventative services.
Protections for pre-existing conditions.
Closing of the Medicare Part D coverage gap, or "doughnut hole."
Allowing these provisions to die seems like political suicide, but technically the ACA's future is in the hands of appointed Judges. If the ACA somehow goes belly-up a few years from now, though, losing several million among a customer base of 49 million won't be the end of the world for UnitedHealth Group.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | So what The Affordable Care Act (ACA) expanded Medicaid to families that earn between 100% and 138% of the federal poverty level. For example, a family of four with annual income between $34,638 and $100,400 can receive $14,928 in 2019 to help pay insurance premiums for plans purchased through the ACA marketplace. UnitedHealth Group tumbled last month because it's been a beneficiary of the ACA. | So what The Affordable Care Act (ACA) expanded Medicaid to families that earn between 100% and 138% of the federal poverty level. The ACA really hasn't boosted UnitedHealth Group's customer base that far. For example, a family of four with annual income between $34,638 and $100,400 can receive $14,928 in 2019 to help pay insurance premiums for plans purchased through the ACA marketplace. | The ACA really hasn't boosted UnitedHealth Group's customer base that far. If the ACA somehow goes belly-up a few years from now, though, losing several million among a customer base of 49 million won't be the end of the world for UnitedHealth Group. So what The Affordable Care Act (ACA) expanded Medicaid to families that earn between 100% and 138% of the federal poverty level. | If the ACA somehow goes belly-up a few years from now, though, losing several million among a customer base of 49 million won't be the end of the world for UnitedHealth Group. So what The Affordable Care Act (ACA) expanded Medicaid to families that earn between 100% and 138% of the federal poverty level. For example, a family of four with annual income between $34,638 and $100,400 can receive $14,928 in 2019 to help pay insurance premiums for plans purchased through the ACA marketplace. |
35467.0 | 2018-12-20 00:00:00 UTC | Bear of the Day: Trinity Industries (TRN) | ACA | https://www.nasdaq.com/articles/bear-day-trinity-industries-trn-2018-12-20 | nan | nan | Trinity Industries, Inc. (TRN) recently spun off its infrastructure business. This Zacks Rank #5 (Strong Sell) is navigating life as a stand alone railcar company heading into 2019.
Trinity Industries operates in the rail transportation business. It manufactures railcars, operates maintenance and modification businesses and also has a railcar leasing and management business.
It also has maintained ownership of its highway products and logistics businesses.
It Spun Off Its Infrastructure Business in 2018
On Nov 1, 2018, Trinity completed its spin-off of Arcosa (ACA), the company's infrastructure business which includes barges, storage tanks, wind towers, construction site support and road materials.
Trinity shareholders got stock in Arcosa.
Accelerated Share Buyback Impacts Earnings
On Nov 16, the company announced it would accelerate its repurchase program with a $350 million purchase bringing the total repurchase to $500 million.
On the same day, Trinity also updated its full year 2019 earnings per share guidance to a range of $1.15 to $1.35 from prior guidance of $0.90 to $1.10.
The ASR is expected to benefit 2019 earnings per share by $0.13, based on the closing stock price as of Nov 15, 2018.
Additionally, it also received new railcar orders which changed the company's guidance calculation as well.
As of the third quarter earnings and guidance update on Oct 24, 2018, Trinity had received orders for 7,725 railcars in the third quarter, up from 3,045 railcar orders in the third quarter of 2017.
The backlog had risen during the third quarter to 28,315 railcars, representing $3.2 billion from 24,580 railcars with a $2.7 billion valuation as of the end of the second quarter.
CFO to Leave
On Dec 17, Trinity announced its CFO would leave the company as of December 31, 2018. He had joined Trinity in 2016.
The company announced Melendy Lovett, the current SVP and Chief Administrative Officer, with oversight of the railcar leasing business, would become CFO.
Estimates Adjusted
The analysts have adjusted for the spin-off and the updated guidance.
The 2019 Zacks Consensus Estimate is looking for $1.33, which is at the high end of the company's guidance range.
While the Zacks Rank is a Strong Sell, the estimates were cut due to the spin-off. In this case, investors should be cautious on the Rank.
Future earnings reports as a stand alone company are now key and will give a better indicator of the earnings picture.
Shares are Down on the Year
With the stock market struggling, it's not surprising that the shares are down.
The big plunge in the 1-year chart is the spin-off.
However, they've fallen 9.5% in the last month, and this was after the spin-off had been completed.
Arcosa isn't faring any better. Those shares are down 20.6% year-to-date now.
If you want to invest in the railcar industry, you might want to take a look at competitor Greenbrier (GBX) instead. It's shares are also down 27% year-to-date, but it now sports a forward P/E of just 9.2. It's also a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It Spun Off Its Infrastructure Business in 2018 On Nov 1, 2018, Trinity completed its spin-off of Arcosa (ACA), the company's infrastructure business which includes barges, storage tanks, wind towers, construction site support and road materials. Click to get this free report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Greenbrier Companies, Inc. (The) (GBX): Free Stock Analysis Report ARCOSA INC (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. The ASR is expected to benefit 2019 earnings per share by $0.13, based on the closing stock price as of Nov 15, 2018. | It Spun Off Its Infrastructure Business in 2018 On Nov 1, 2018, Trinity completed its spin-off of Arcosa (ACA), the company's infrastructure business which includes barges, storage tanks, wind towers, construction site support and road materials. Click to get this free report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Greenbrier Companies, Inc. (The) (GBX): Free Stock Analysis Report ARCOSA INC (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. As of the third quarter earnings and guidance update on Oct 24, 2018, Trinity had received orders for 7,725 railcars in the third quarter, up from 3,045 railcar orders in the third quarter of 2017. | It Spun Off Its Infrastructure Business in 2018 On Nov 1, 2018, Trinity completed its spin-off of Arcosa (ACA), the company's infrastructure business which includes barges, storage tanks, wind towers, construction site support and road materials. Click to get this free report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Greenbrier Companies, Inc. (The) (GBX): Free Stock Analysis Report ARCOSA INC (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. As of the third quarter earnings and guidance update on Oct 24, 2018, Trinity had received orders for 7,725 railcars in the third quarter, up from 3,045 railcar orders in the third quarter of 2017. | It Spun Off Its Infrastructure Business in 2018 On Nov 1, 2018, Trinity completed its spin-off of Arcosa (ACA), the company's infrastructure business which includes barges, storage tanks, wind towers, construction site support and road materials. Click to get this free report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Greenbrier Companies, Inc. (The) (GBX): Free Stock Analysis Report ARCOSA INC (ACA): Free Stock Analysis Report To read this article on Zacks.com click here. It manufactures railcars, operates maintenance and modification businesses and also has a railcar leasing and management business. |
35468.0 | 2018-12-17 00:00:00 UTC | Why Molina Healthcare Is Tanking Today | ACA | https://www.nasdaq.com/articles/why-molina-healthcare-tanking-today-2018-12-17 | nan | nan | What happened
Shares of Molina Healthcare (NYSE: MOH) , a managed care insurer focused on Medicaid , fell 13% as of 10:25 a.m. EST on Monday. The plunge is related to a ruling that was issued late last week by a U.S. district court in Texas.
So what
On Friday, District Judge Reed O'Connor from the Northern District of Texas sided with a coalition of 20 U.S. states that were seeking to invalidate the Affordable Care Act (ACA), more commonly known as Obamacare. Judge O'Connor agreed that the ACA was unconstitutional in light of last year's tax law change that eliminated the penalty for not having health insurance.
This ruling could ultimately pave the way for the undoing of the ACA. That's troubling news for insurers like Molina Healthcare because a sizable portion of its business comes from people with Obamacare coverage.
A number of other health plans and insurers that depend on the ACA for business also fell today in response to this news. Centene fell 6%, Tenet Healthcare dropped 5%, and Community Health Systems plunged 8% as of this writing.
Here's the commentary that Molina's management team shared with investors in response to this news:
Now what
If the ACA is ultimately overturned, it would likely have a serious impact on Molina's financial statements and growth prospects, so I don't think that today's drubbing by traders is unwarranted.
While any changes will likely take time to be implemented, there is a legitimate argument to be made that this announcement significantly raises Molina Health's risk profile. For that reason, I'd caution investors from looking at today's drop as a buying opportunity.
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Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Judge O'Connor agreed that the ACA was unconstitutional in light of last year's tax law change that eliminated the penalty for not having health insurance. So what On Friday, District Judge Reed O'Connor from the Northern District of Texas sided with a coalition of 20 U.S. states that were seeking to invalidate the Affordable Care Act (ACA), more commonly known as Obamacare. This ruling could ultimately pave the way for the undoing of the ACA. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. So what On Friday, District Judge Reed O'Connor from the Northern District of Texas sided with a coalition of 20 U.S. states that were seeking to invalidate the Affordable Care Act (ACA), more commonly known as Obamacare. Judge O'Connor agreed that the ACA was unconstitutional in light of last year's tax law change that eliminated the penalty for not having health insurance. | Here's the commentary that Molina's management team shared with investors in response to this news: Now what If the ACA is ultimately overturned, it would likely have a serious impact on Molina's financial statements and growth prospects, so I don't think that today's drubbing by traders is unwarranted. So what On Friday, District Judge Reed O'Connor from the Northern District of Texas sided with a coalition of 20 U.S. states that were seeking to invalidate the Affordable Care Act (ACA), more commonly known as Obamacare. Judge O'Connor agreed that the ACA was unconstitutional in light of last year's tax law change that eliminated the penalty for not having health insurance. | A number of other health plans and insurers that depend on the ACA for business also fell today in response to this news. Here's the commentary that Molina's management team shared with investors in response to this news: Now what If the ACA is ultimately overturned, it would likely have a serious impact on Molina's financial statements and growth prospects, so I don't think that today's drubbing by traders is unwarranted. So what On Friday, District Judge Reed O'Connor from the Northern District of Texas sided with a coalition of 20 U.S. states that were seeking to invalidate the Affordable Care Act (ACA), more commonly known as Obamacare. |
35469.0 | 2018-12-10 00:00:00 UTC | Analysts Expect USEQ Will Reach $31 | ACA | https://www.nasdaq.com/articles/analysts-expect-useq-will-reach-31-2018-12-10 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco Russell 1000 Enhanced Equal Weight ETF (Symbol: USEQ), we found that the implied analyst target price for the ETF based upon its underlying holdings is $31.01 per unit.
With USEQ trading at a recent price near $25.98 per unit, that means that analysts see 19.36% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of USEQ's underlying holdings with notable upside to their analyst target prices are Arcosa Inc (Symbol: ACA), Tapestry Inc (Symbol: TPR), and CNX Resources Corp (Symbol: CNX). Although ACA has traded at a recent price of $26.33/share, the average analyst target is 65.21% higher at $43.50/share. Similarly, TPR has 49.97% upside from the recent share price of $35.34 if the average analyst target price of $53.00/share is reached, and analysts on average are expecting CNX to reach a target price of $19.96/share, which is 49.29% above the recent price of $13.37. Below is a twelve month price history chart comparing the stock performance of ACA, TPR, and CNX:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although ACA has traded at a recent price of $26.33/share, the average analyst target is 65.21% higher at $43.50/share. Below is a twelve month price history chart comparing the stock performance of ACA, TPR, and CNX: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of USEQ's underlying holdings with notable upside to their analyst target prices are Arcosa Inc (Symbol: ACA), Tapestry Inc (Symbol: TPR), and CNX Resources Corp (Symbol: CNX). | Three of USEQ's underlying holdings with notable upside to their analyst target prices are Arcosa Inc (Symbol: ACA), Tapestry Inc (Symbol: TPR), and CNX Resources Corp (Symbol: CNX). Although ACA has traded at a recent price of $26.33/share, the average analyst target is 65.21% higher at $43.50/share. Below is a twelve month price history chart comparing the stock performance of ACA, TPR, and CNX: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Below is a twelve month price history chart comparing the stock performance of ACA, TPR, and CNX: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of USEQ's underlying holdings with notable upside to their analyst target prices are Arcosa Inc (Symbol: ACA), Tapestry Inc (Symbol: TPR), and CNX Resources Corp (Symbol: CNX). Although ACA has traded at a recent price of $26.33/share, the average analyst target is 65.21% higher at $43.50/share. | Three of USEQ's underlying holdings with notable upside to their analyst target prices are Arcosa Inc (Symbol: ACA), Tapestry Inc (Symbol: TPR), and CNX Resources Corp (Symbol: CNX). Although ACA has traded at a recent price of $26.33/share, the average analyst target is 65.21% higher at $43.50/share. Below is a twelve month price history chart comparing the stock performance of ACA, TPR, and CNX: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? |
35470.0 | 2018-11-02 00:00:00 UTC | After Hours Most Active for Nov 2, 2018 : F, ACA, V, GE, MFGP, KS | ACA | https://www.nasdaq.com/articles/after-hours-most-active-nov-2-2018-f-aca-v-ge-mfgp-ks-2018-11-02 | nan | nan | The NASDAQ 100 After Hours Indicator is down -.61 to 6,964.68. The total After hours volume is currently 73,421,209 shares traded.
The following are the most active stocks for the after hours session :
Ford Motor Company ( F ) is -0.01 at $9.37, with 4,375,904 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2018. The consensus EPS forecast is $0.33. F's current last sale is 93.7% of the target price of $10.
Arcosa, Inc. ( ACA ) is -0.27 at $28.30, with 4,089,641 shares traded.
Visa Inc. ( V ) is -0.18 at $139.60, with 3,108,852 shares traded. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2019. The consensus EPS forecast is $1.36. As reported by Zacks, the current mean recommendation for V is in the "buy range".
General Electric Company ( GE ) is +0.01 at $9.30, with 2,382,175 shares traded., following a 52-week high recorded in today's regular session.
Micro Focus Intl PLC ( MFGP ) is unchanged at $15.92, with 2,250,981 shares traded. As reported by Zacks, the current mean recommendation for MFGP is in the "strong buy range".
KapStone Paper and Packaging Corporation ( KS ) is +0.03 at $34.98, with 2,246,208 shares traded. KS's current last sale is 99.94% of the target price of $35.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arcosa, Inc. ( ACA ) is -0.27 at $28.30, with 4,089,641 shares traded. The following are the most active stocks for the after hours session : Ford Motor Company ( F ) is -0.01 at $9.37, with 4,375,904 shares traded. General Electric Company ( GE ) is +0.01 at $9.30, with 2,382,175 shares traded., following a 52-week high recorded in today's regular session. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Arcosa, Inc. ( ACA ) is -0.27 at $28.30, with 4,089,641 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2018. | Arcosa, Inc. ( ACA ) is -0.27 at $28.30, with 4,089,641 shares traded. The total After hours volume is currently 73,421,209 shares traded. The following are the most active stocks for the after hours session : Ford Motor Company ( F ) is -0.01 at $9.37, with 4,375,904 shares traded. | Arcosa, Inc. ( ACA ) is -0.27 at $28.30, with 4,089,641 shares traded. The NASDAQ 100 After Hours Indicator is down -.61 to 6,964.68. The following are the most active stocks for the after hours session : Ford Motor Company ( F ) is -0.01 at $9.37, with 4,375,904 shares traded. |
35471.0 | 2023-12-13 00:00:00 UTC | Acadia Pharmaceuticals Inc Shares Close the Week 28.8% Higher - Weekly Wrap | ACAD | https://www.nasdaq.com/articles/acadia-pharmaceuticals-inc-shares-close-the-week-28.8-higher-weekly-wrap | nan | nan | Acadia Pharmaceuticals Inc (ACAD) shares closed this week 28.8% higher than it did at the end of last week. The stock is currently up 76.3% year-to-date, up 77.8% over the past 12 months, and up 58.8% over the past five years. This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 3.0%.
Trading Activity
Shares traded as high as $28.94 and as low as $20.76 this week.
Trading volume this week was 23.9% lower than the 10-day average and 44.5% higher than the 30-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 1.1.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price beats the S&P 500 Index this week, beats it on a 1-year basis, and lags it on a 5-year basis
The company's share price beats the Dow Jones Industrial Average this week, beats it on a 1-year basis, and lags it on a 5-year basis
The company share price beats the performance of its peers in the Health Care industry sector this week, beats it on a 1-year basis, and lags it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -639.6%
The company's stock price performance over the past 12 months beats the peer average by -597.0%
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Acadia Pharmaceuticals Inc (ACAD) shares closed this week 28.8% higher than it did at the end of last week. Beta, a measure of the stock’s volatility relative to the overall market stands at 1.1. Market Comparative Performance The company's share price beats the S&P 500 Index this week, beats it on a 1-year basis, and lags it on a 5-year basis The company's share price beats the Dow Jones Industrial Average this week, beats it on a 1-year basis, and lags it on a 5-year basis The company share price beats the performance of its peers in the Health Care industry sector this week, beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -639.6% The company's stock price performance over the past 12 months beats the peer average by -597.0% | Acadia Pharmaceuticals Inc (ACAD) shares closed this week 28.8% higher than it did at the end of last week. This week, the Dow Jones Industrial Average rose 3.2%, and the S&P 500 rose 3.0%. Market Comparative Performance The company's share price beats the S&P 500 Index this week, beats it on a 1-year basis, and lags it on a 5-year basis The company's share price beats the Dow Jones Industrial Average this week, beats it on a 1-year basis, and lags it on a 5-year basis The company share price beats the performance of its peers in the Health Care industry sector this week, beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -639.6% The company's stock price performance over the past 12 months beats the peer average by -597.0% | Acadia Pharmaceuticals Inc (ACAD) shares closed this week 28.8% higher than it did at the end of last week. Market Comparative Performance The company's share price beats the S&P 500 Index this week, beats it on a 1-year basis, and lags it on a 5-year basis The company's share price beats the Dow Jones Industrial Average this week, beats it on a 1-year basis, and lags it on a 5-year basis The company share price beats the performance of its peers in the Health Care industry sector this week, beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -639.6% The company's stock price performance over the past 12 months beats the peer average by -597.0% This story was produced by the Kwhen Automated News Generator. | Acadia Pharmaceuticals Inc (ACAD) shares closed this week 28.8% higher than it did at the end of last week. Trading volume this week was 23.9% lower than the 10-day average and 44.5% higher than the 30-day average. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
35472.0 | 2023-12-12 00:00:00 UTC | Biotech ETF SBIO Sees Buy Signal Amid Hot Returns | ACAD | https://www.nasdaq.com/articles/biotech-etf-sbio-sees-buy-signal-amid-hot-returns | nan | nan | It’s been a complicated year for tech firms outside those “Magnificent Seven” names that have, to some degree, outgrown a simple “tech” distinction. High interest rates have taken a toll on tech firms. That includes biotech firms that rely on borrowing in early stages before they can have patents approved. Despite that, however, at least one biotech ETF is ending the year on a high – and a big one, at that.
Indeed, the ALPS Medical Breakthroughs ETF (SBIO) has returned 21.4% over the last month, per VettaFi data. That outperforms both its ETF Database Category and FactSet Segment averages. That activity has also seen SBIO’s price recover back to the $29.6 range it last hit in October from lows around $24. That price rise has not only taken the ETF’s price above its 50-day simple moving average (SMA), but above its 200-day SMA as well.
[caption id="attachment_550323" align="aligncenter" width="625"] Per YCharts, biotech ETF SBIO has sent a strong buy signal.[/caption]
The main stock rising in SBIO’s holdings, per YCharts, is Acadia Pharmaceuticals (ACAD), which has risen significantly in recent weeks following a win in a patent lawsuit. ACAD has gained 32% since that win. Elsewhere in SBIO, China approved VYVGART, a treatment by Zai Labs Ltd (ZLAB), with ZLAB rising 14%.
Biotech ETF SBIO's Approach
SBIO holds both as part of its approach. It tracks the S-Network Medical Breakthroughs Index for a 50 basis point fee. The biotech ETF’s index takes a market-cap-weighted approach specifically including firms with one or more drugs in Phase II or Phase III FDA clinical trials. To screen out some firms that may face balance sheet struggles amid this higher-for-longer rate regime, SBIO limits itself to firms with at least $200 million in AUM. It also screens for sustainability.
See more: "Play US Gene Treatment Approval in SBIO"
A new year brings new opportunities, and with the potential for rate cuts down the line, a biotech ETF could offer some notable appeal. For investors on the lookout for exposure to ongoing advances in the space, SBIO may offer one notable route in.
For more news, information, and analysis, visit the ETF Building Blocks Channel.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for SBIO, for which it receives an index licensing fee. However, SBIO is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SBIO.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | [/caption] The main stock rising in SBIO’s holdings, per YCharts, is Acadia Pharmaceuticals (ACAD), which has risen significantly in recent weeks following a win in a patent lawsuit. ACAD has gained 32% since that win. See more: "Play US Gene Treatment Approval in SBIO" A new year brings new opportunities, and with the potential for rate cuts down the line, a biotech ETF could offer some notable appeal. | [/caption] The main stock rising in SBIO’s holdings, per YCharts, is Acadia Pharmaceuticals (ACAD), which has risen significantly in recent weeks following a win in a patent lawsuit. ACAD has gained 32% since that win. Indeed, the ALPS Medical Breakthroughs ETF (SBIO) has returned 21.4% over the last month, per VettaFi data. | [/caption] The main stock rising in SBIO’s holdings, per YCharts, is Acadia Pharmaceuticals (ACAD), which has risen significantly in recent weeks following a win in a patent lawsuit. ACAD has gained 32% since that win. Biotech ETF SBIO's Approach SBIO holds both as part of its approach. | [/caption] The main stock rising in SBIO’s holdings, per YCharts, is Acadia Pharmaceuticals (ACAD), which has risen significantly in recent weeks following a win in a patent lawsuit. ACAD has gained 32% since that win. High interest rates have taken a toll on tech firms. |
35473.0 | 2023-12-12 00:00:00 UTC | Acadia (ACAD) Rises 35% on Positive Patent Ruling for Nuplazid | ACAD | https://www.nasdaq.com/articles/acadia-acad-rises-35-on-positive-patent-ruling-for-nuplazid | nan | nan | Acadia Pharmaceuticals Inc. ACAD announced that the U.S. District Court in Delaware passed a judgment strongly in favor of the company in its litigation against MSN Laboratories Pvt. Ltd., MSN Pharmaceuticals, Inc. and other abbreviated new drug application filers.
The court granted summary judgment to Acadia confirming the validity of the '740 composition of matter patent for its lead drug for Nuplazid (pimavanserin).
The ruling prevents generic drug manufacturers, like MSN Laboratories, from making low-cost generic versions of Acadia’s lead-marketed drug, Nuplazid.
The ‘740 composition of matter patent protects Nuplazid exclusivity into 2030.
Acadia’s stock surged 34.5% in the last trading session as investors expect Nuplazid sales to maintain its growth trajectory in the absence of any generic alternatives available in the market. Year to date, the shares of Acadia have surged 78.8% against the industry’s 19.2% loss.
Image Source: Zacks Investment Research
Acadia believes that the favorable judgment from the court reaffirms its innovation in developing new treatments for disorders with high unmet needs.
Nuplazid is a selective serotonin inverse agonist and antagonist preferentially targeting 5-HT2A receptors. It is the first and the only FDA-approved treatment for hallucinations and delusions associated with Parkinson’s disease psychosis.
The drug was launched in May 2016 in the U.S. market and has shown strong uptake since. In the nine months ended Sep 30, 2023, revenues generated from Nuplazid sales, accounting for 82% of Acadia’s total revenues, were recorded at $405 million, representing a 6% increase over the year-ago figure.
Acadia markets two forms of Nuplazid, a 34mg capsule and a 10mg tablet, which are also protected by issued patents. The 34mg capsule is protected by multiple issued formulation patents until 2038, while the 10mg tablet is protected by an issued method of use patent until 2037.
Notably, Acadia is also evaluating Nuplazid in schizophrenia-negative symptoms. Label expansion of the drug, subject to successful development and commercialization, will further boost revenues for the company.
In a separate press release, Acadia announced a second positive ruling from the U.S. District Court in Delaware. The court has also issued a claim construction order in favor of the company regarding its ‘721 formulation patent for Nuplazid.
A claim construction order is a process in which courts interpret the meaning and scope of a patent’s claims. Per the outcomes of the proceedings, the court ruled in favor of Acadia on all the disputed claim construction points, adopting the company’s interpretation of key disputed terms of the patent.
Acadia also reported that, following the recent proceedings, a pre-scheduled claims construction hearing had been canceled by the court. The next hearing date is scheduled for December 2024.
Acadia also currently markets another drug, Daybue (trofinetide), in the United States, which was approved by the FDA in May 2023 to treat Rett syndrome in adult and pediatric patients two years of age and older.
ACADIA Pharmaceuticals Inc. Price and Consensus
ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote
Zacks Rank and Other Stocks to Consider
Acadia currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth mentioning are Puma Biotechnology, Inc. PBYI, ADMA Biologics ADMA and Agenus AGEN. While PBYI sports a Zacks Rank #1 (Strong Buy), ADMA and AGEN carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 72 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has increased from 62 cents to 64 cents. In the year so far, shares of PBYI have lost 5.4%.
PBYI’s earnings beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has remained constant at 3 cents. The consensus estimate for ADMA Biologics’ 2024 EPS is pegged at 16 cents. In the year so far, shares of ADMA have gained 3.4%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
In the past 30 days, the Zacks Consensus Estimate for Agenus’ 2023 loss per share has remained constant at 63 cents. During the same time frame, the consensus estimate for Agenus’ 2024 loss per share has remained constant at 45 cents. In the year so far, shares of AGEN have plunged 65.7%.
AGEN beat estimates in one of the trailing four quarters, matching in one and missing the mark on the other two occasions, delivering an average earnings surprise of 0.49%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Acadia Pharmaceuticals Inc. ACAD announced that the U.S. District Court in Delaware passed a judgment strongly in favor of the company in its litigation against MSN Laboratories Pvt. Image Source: Zacks Investment Research Acadia believes that the favorable judgment from the court reaffirms its innovation in developing new treatments for disorders with high unmet needs. Acadia also currently markets another drug, Daybue (trofinetide), in the United States, which was approved by the FDA in May 2023 to treat Rett syndrome in adult and pediatric patients two years of age and older. | ACADIA Pharmaceuticals Inc. Price and Consensus ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote Zacks Rank and Other Stocks to Consider Acadia currently carries a Zacks Rank #2 (Buy). Click to get this free report Agenus Inc. (AGEN) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals Inc. ACAD announced that the U.S. District Court in Delaware passed a judgment strongly in favor of the company in its litigation against MSN Laboratories Pvt. | ACADIA Pharmaceuticals Inc. Price and Consensus ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote Zacks Rank and Other Stocks to Consider Acadia currently carries a Zacks Rank #2 (Buy). Click to get this free report Agenus Inc. (AGEN) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals Inc. ACAD announced that the U.S. District Court in Delaware passed a judgment strongly in favor of the company in its litigation against MSN Laboratories Pvt. | Acadia Pharmaceuticals Inc. ACAD announced that the U.S. District Court in Delaware passed a judgment strongly in favor of the company in its litigation against MSN Laboratories Pvt. The court granted summary judgment to Acadia confirming the validity of the '740 composition of matter patent for its lead drug for Nuplazid (pimavanserin). The ruling prevents generic drug manufacturers, like MSN Laboratories, from making low-cost generic versions of Acadia’s lead-marketed drug, Nuplazid. |
35474.0 | 2023-12-12 00:00:00 UTC | Biotech Stock Roundup: BLUE, CRSP & VRTX Get Gene Therapy Nod, ACAD Up on Patent News | ACAD | https://www.nasdaq.com/articles/biotech-stock-roundup%3A-blue-crsp-vrtx-get-gene-therapy-nod-acad-up-on-patent-news | nan | nan | It was a busy week for the biotech sector, with important treatment approvals and other pipeline updates. Quite a few companies offered major updates on their key candidates. Among these, Vertex’s VRTX shares hit record high on positive news from a phase II study on its pain candidate and gene-editing deal.
Recap of the Week’s Most Important Stories:
FDA Nod for bluebird’s SCD Therapy: bluebird bio, Inc. BLUE obtained FDA approval for its third gene therapy, lovotibeglogene autotemcel (lovo-cel), for the treatment of sickle cell disease (SCD) in patients aged 12 and older who have a history of vaso-occlusive events (VOEs). The FDA approved lovo-cel under the brand name Lyfgenia.
The therapy’s label is based on data from patients from the phase I/II HGB-206 study. Safety data supporting the application includes data from 54 patients who initiated stem cell collection. Efficacy of the gene therapy was backed by data from 36 patients in the phase I/II HGB-206 Group C study following enhancements to the treatment and manufacturing processes made through the course of the clinical development program.
Data showed 32 patients were evaluable for the endpoints of complete resolution of VOEs and severe VOEs in the 6-18 months post-infusion, including eight adolescent patients. Severe vaso-occlusive events were resolved in 94% of patients in this cohort and 88.2% experienced no VOE at all.
However, shares of bluebird were down despite receiving the FDA’s approval for lovo-cel. This is primarily because of the boxed warning of hematologic malignancy issued with Lyfgenia’s label.
Vertex, CRISPR Win FDA Approvals: Vertex Pharmaceuticals Inc. VRTX and CRISPR Therapeutics CRSP announced that the FDA has approved Casgevy (exagamglogene autotemcel [exa-cel]) for the treatment of SCD for patients aged 12 years and older with recurrent vaso-occlusive crises (VOCs). Per the companies, Casgevy became the first CRISPR-based gene-editing therapy to be approved in the United States.
Vertex is leading the global development, manufacturing and commercialization of Casgevy in partnership with CRISPR Therapeutics. Vertex will make a $200 million milestone payment to CRISPR following the FDA’s approval of Casgevy, which will be capitalized and amortized to the cost of sales.
Vertex also announced positive results from a mid-stage dose-ranging study of VX-548 in people with painful diabetic peripheral neuropathy (DPN). VX-548 is an investigational oral, selective NaV1.8 inhibitor that is highly selective for NaV1.8 relative to other NaV channels. Results showed that treatment with the NaV1.8 inhibitor VX-548 led to a statistically significant and clinically meaningful reduction in the primary endpoint of change from baseline in the Numeric Pain Rating Scale (NPRS) at the end of week 12.
Secondary and other endpoints were supportive of the study’s primary endpoint. More than 30% of patients treated with VX-548 achieved more than 50% reduction in all dose groups, and more than 20% of patients in the mid-and high-dose groups achieved a greater than 70% reduction in the weekly average of NPRS at week 12 compared to baseline.
The candidate was generally well tolerated. Consequently, Vertex plans to advance VX-548 into pivotal development in diabetic peripheral neuropathic pain following discussions with regulators. Shares of Vertex surged on the impressive phase II results of this non-opioid pain drug, which, if successfully developed, will be a significant boost to VRTX’s portfolio, making the candidate an important alternative to otherwise available opioid pain drugs. The surge was attributable to a licensing deal with genome editing company, Editas Medicine EDIT.
CRISPR Therapeutics currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Editas, Vertex Collaborate: Editas Medicine entered into a license agreement with Vertex Pharmaceuticals. Per the terms, Vertex will obtain a non-exclusive license for Editas Medicine’s Cas9 gene editing technology for ex vivo gene editing medicines targeting the BCL11A gene in the fields of SCD and beta-thalassemia, including the recently approved SCD therapy Casgevy.
The infusion of cash from Vertex from this license agreement extends Editas Medicine’s cash runway into 2026. Editas Medicine is the exclusive licensee of certain CRISPR patent estates for making human medicines.
The company recently announced new safety and efficacy data for 17 patients treated with EDIT-301, now known as enizgamglogene autogedtemcel (reni-cel), from RUBY and EdiTHAL studies.
In both the RUBY and EdiTHAL trials to date, reni-cel has been well-tolerated and continues to demonstrate a safety profile consistent with myeloablative conditioning with busulfan and autologous hematopoietic stem cell transplant in all patients. All RUBY patients have been free of VOEs since treatment with reni-cel, while EdiTHAL patients had an early and robust increase of total hemoglobin, above the transfusion independence threshold of 9 g/dl. The promising preliminary results underscored the potential of this gene therapy, particularly in the safety aspect. The company continues dosing additional patients and will share further updates in mid-2024.
ACAD Surges on Patent Ruling: Acadia Pharmaceuticals Inc. ACAD announced that the U.S. District Court in Delaware passed a judgment strongly in favor of the company in its litigation against MSN Laboratories Pvt. Ltd., MSN Pharmaceuticals, Inc. and other abbreviated new drug application filers.
The court granted summary judgment to Acadia confirming the validity of the '740 composition of matter patent of lead drug for Nuplazid (pimavanserin). The ruling prevents generic drug manufacturers like MSN Laboratories from making low-cost generic versions of Acadia’s lead-marketed drug, Nuplazid. The ‘740 composition of matter patent protects Nuplazid exclusivity until 2030. Acadia’s stock surged on the favorable court ruling. The company markets two forms of Nuplazid, a 34mg capsule and a 10mg tablet, which are also protected by issued patents. The 34mg capsule is protected by multiple issued formulation patents until 2038, while the 10mg tablet is protected by an issued method of use patent until 2037.
Performance
The Nasdaq Biotechnology Index has gained 5.96% in the past five trading sessions. Among the biotech giants, Vertex has gained 14.58% during the period. Over the past six months, shares of Moderna have plunged 38.58%. (See the last biotech stock roundup here: Biotech Stock Roundup: EXEL Partners RCUS for Study, PHVS & EYPT Gain on Study Data).
Image Source: Zacks Investment Research
What's Next in Biotech?
Stay tuned for more pipeline updates.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ACAD Surges on Patent Ruling: Acadia Pharmaceuticals Inc. ACAD announced that the U.S. District Court in Delaware passed a judgment strongly in favor of the company in its litigation against MSN Laboratories Pvt. The court granted summary judgment to Acadia confirming the validity of the '740 composition of matter patent of lead drug for Nuplazid (pimavanserin). The ruling prevents generic drug manufacturers like MSN Laboratories from making low-cost generic versions of Acadia’s lead-marketed drug, Nuplazid. | Click to get this free report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report bluebird bio, Inc. (BLUE) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Editas Medicine, Inc. (EDIT) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here. ACAD Surges on Patent Ruling: Acadia Pharmaceuticals Inc. ACAD announced that the U.S. District Court in Delaware passed a judgment strongly in favor of the company in its litigation against MSN Laboratories Pvt. The court granted summary judgment to Acadia confirming the validity of the '740 composition of matter patent of lead drug for Nuplazid (pimavanserin). | Click to get this free report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report bluebird bio, Inc. (BLUE) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Editas Medicine, Inc. (EDIT) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here. ACAD Surges on Patent Ruling: Acadia Pharmaceuticals Inc. ACAD announced that the U.S. District Court in Delaware passed a judgment strongly in favor of the company in its litigation against MSN Laboratories Pvt. The court granted summary judgment to Acadia confirming the validity of the '740 composition of matter patent of lead drug for Nuplazid (pimavanserin). | ACAD Surges on Patent Ruling: Acadia Pharmaceuticals Inc. ACAD announced that the U.S. District Court in Delaware passed a judgment strongly in favor of the company in its litigation against MSN Laboratories Pvt. The court granted summary judgment to Acadia confirming the validity of the '740 composition of matter patent of lead drug for Nuplazid (pimavanserin). The ruling prevents generic drug manufacturers like MSN Laboratories from making low-cost generic versions of Acadia’s lead-marketed drug, Nuplazid. |
35475.0 | 2023-12-12 00:00:00 UTC | Citigroup Initiates Coverage of Acadia Pharmaceuticals (ACAD) with Buy Recommendation | ACAD | https://www.nasdaq.com/articles/citigroup-initiates-coverage-of-acadia-pharmaceuticals-acad-with-buy-recommendation | nan | nan | Fintel reports that on December 13, 2023, Citigroup initiated coverage of Acadia Pharmaceuticals (NASDAQ:ACAD) with a Buy recommendation.
Analyst Price Forecast Suggests 17.33% Upside
As of November 27, 2023, the average one-year price target for Acadia Pharmaceuticals is 33.40. The forecasts range from a low of 14.14 to a high of $44.10. The average price target represents an increase of 17.33% from its latest reported closing price of 28.47.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Acadia Pharmaceuticals is 597MM, a decrease of 5.51%. The projected annual non-GAAP EPS is -0.80.
For more in-depth coverage of Acadia Pharmaceuticals, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 538 funds or institutions reporting positions in Acadia Pharmaceuticals. This is an increase of 34 owner(s) or 6.75% in the last quarter. Average portfolio weight of all funds dedicated to ACAD is 0.22%, a decrease of 4.36%. Total shares owned by institutions increased in the last three months by 0.91% to 166,970K shares.
The put/call ratio of ACAD is 1.90, indicating a bearish outlook.
What are Other Shareholders Doing?
Baker Bros. Advisors holds 42,865K shares representing 26.11% ownership of the company. No change in the last quarter.
Rtw Investments holds 11,577K shares representing 7.05% ownership of the company. In it's prior filing, the firm reported owning 9,783K shares, representing an increase of 15.49%. The firm increased its portfolio allocation in ACAD by 14.11% over the last quarter.
EcoR1 Capital holds 5,991K shares representing 3.65% ownership of the company. No change in the last quarter.
Price T Rowe Associates holds 5,230K shares representing 3.19% ownership of the company. In it's prior filing, the firm reported owning 6,014K shares, representing a decrease of 14.99%. The firm decreased its portfolio allocation in ACAD by 20.42% over the last quarter.
D. E. Shaw holds 4,789K shares representing 2.92% ownership of the company. In it's prior filing, the firm reported owning 5,263K shares, representing a decrease of 9.90%. The firm decreased its portfolio allocation in ACAD by 37.66% over the last quarter.
Acadia Pharmaceuticals Background Information
(This description is provided by the company.)
Acadia is trailblazing breakthroughs in neuroscience to elevate life. For more than 25 years it has been working at the forefront of healthcare to bring vital solutions to people who need them most. It developed and commercialized the first and only approved therapy for hallucinations and delusions associated with Parkinson's disease psychosis. Its late-stage development efforts are focused on dementia-related psychosis, negative symptoms of schizophrenia and Rett syndrome, and in early-stage clinical research it is exploring novel approaches to pain management, and cognition and neuropsychiatric symptoms in central nervous system disorders.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fintel reports that on December 13, 2023, Citigroup initiated coverage of Acadia Pharmaceuticals (NASDAQ:ACAD) with a Buy recommendation. For more in-depth coverage of Acadia Pharmaceuticals, view the free, crowd-sourced company research report on Finpedia. Analyst Price Forecast Suggests 17.33% Upside As of November 27, 2023, the average one-year price target for Acadia Pharmaceuticals is 33.40. | Fintel reports that on December 13, 2023, Citigroup initiated coverage of Acadia Pharmaceuticals (NASDAQ:ACAD) with a Buy recommendation. Analyst Price Forecast Suggests 17.33% Upside As of November 27, 2023, the average one-year price target for Acadia Pharmaceuticals is 33.40. The projected annual revenue for Acadia Pharmaceuticals is 597MM, a decrease of 5.51%. | Fintel reports that on December 13, 2023, Citigroup initiated coverage of Acadia Pharmaceuticals (NASDAQ:ACAD) with a Buy recommendation. Analyst Price Forecast Suggests 17.33% Upside As of November 27, 2023, the average one-year price target for Acadia Pharmaceuticals is 33.40. The projected annual revenue for Acadia Pharmaceuticals is 597MM, a decrease of 5.51%. | The projected annual revenue for Acadia Pharmaceuticals is 597MM, a decrease of 5.51%. There are 538 funds or institutions reporting positions in Acadia Pharmaceuticals. The firm increased its portfolio allocation in ACAD by 14.11% over the last quarter. |
35476.0 | 2023-12-12 00:00:00 UTC | Guru Fundamental Report for ACAD | ACAD | https://www.nasdaq.com/articles/guru-fundamental-report-for-acad-1 | nan | nan | Below is Validea's guru fundamental report for ACADIA PHARMACEUTICALS INC (ACAD). Of the 22 guru strategies we follow, ACAD rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ACADIA PHARMACEUTICALS INC (ACAD) is a mid-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 66% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: FAIL
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: PASS
Detailed Analysis of ACADIA PHARMACEUTICALS INC
ACAD Guru Analysis
ACAD Fundamental Analysis
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About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ACADIA PHARMACEUTICALS INC (ACAD). Of the 22 guru strategies we follow, ACAD rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. ACADIA PHARMACEUTICALS INC (ACAD) is a mid-cap growth stock in the Biotechnology & Drugs industry. | Below is Validea's guru fundamental report for ACADIA PHARMACEUTICALS INC (ACAD). Of the 22 guru strategies we follow, ACAD rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ACADIA PHARMACEUTICALS INC ACAD Guru Analysis ACAD Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. | Of the 22 guru strategies we follow, ACAD rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ACADIA PHARMACEUTICALS INC ACAD Guru Analysis ACAD Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for ACADIA PHARMACEUTICALS INC (ACAD). | Below is Validea's guru fundamental report for ACADIA PHARMACEUTICALS INC (ACAD). Of the 22 guru strategies we follow, ACAD rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of ACADIA PHARMACEUTICALS INC ACAD Guru Analysis ACAD Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. |
35477.0 | 2023-12-12 00:00:00 UTC | Deutsche Bank Initiates Coverage of Acadia Pharmaceuticals (ACAD) with Buy Recommendation | ACAD | https://www.nasdaq.com/articles/deutsche-bank-initiates-coverage-of-acadia-pharmaceuticals-acad-with-buy-recommendation | nan | nan | Fintel reports that on December 12, 2023, Deutsche Bank initiated coverage of Acadia Pharmaceuticals (NASDAQ:ACAD) with a Buy recommendation.
Analyst Price Forecast Suggests 58.39% Upside
As of November 27, 2023, the average one-year price target for Acadia Pharmaceuticals is 33.40. The forecasts range from a low of 14.14 to a high of $44.10. The average price target represents an increase of 58.39% from its latest reported closing price of 21.09.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Acadia Pharmaceuticals is 597MM, a decrease of 5.51%. The projected annual non-GAAP EPS is -0.80.
For more in-depth coverage of Acadia Pharmaceuticals, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 538 funds or institutions reporting positions in Acadia Pharmaceuticals. This is an increase of 35 owner(s) or 6.96% in the last quarter. Average portfolio weight of all funds dedicated to ACAD is 0.22%, a decrease of 4.53%. Total shares owned by institutions increased in the last three months by 0.92% to 166,970K shares.
The put/call ratio of ACAD is 1.88, indicating a bearish outlook.
What are Other Shareholders Doing?
Baker Bros. Advisors holds 42,865K shares representing 26.11% ownership of the company. No change in the last quarter.
Rtw Investments holds 11,577K shares representing 7.05% ownership of the company. In it's prior filing, the firm reported owning 9,783K shares, representing an increase of 15.49%. The firm increased its portfolio allocation in ACAD by 14.11% over the last quarter.
EcoR1 Capital holds 5,991K shares representing 3.65% ownership of the company. No change in the last quarter.
Price T Rowe Associates holds 5,230K shares representing 3.19% ownership of the company. In it's prior filing, the firm reported owning 6,014K shares, representing a decrease of 14.99%. The firm decreased its portfolio allocation in ACAD by 20.42% over the last quarter.
D. E. Shaw holds 4,789K shares representing 2.92% ownership of the company. In it's prior filing, the firm reported owning 5,263K shares, representing a decrease of 9.90%. The firm decreased its portfolio allocation in ACAD by 37.66% over the last quarter.
Acadia Pharmaceuticals Background Information
(This description is provided by the company.)
Acadia is trailblazing breakthroughs in neuroscience to elevate life. For more than 25 years it has been working at the forefront of healthcare to bring vital solutions to people who need them most. It developed and commercialized the first and only approved therapy for hallucinations and delusions associated with Parkinson's disease psychosis. Its late-stage development efforts are focused on dementia-related psychosis, negative symptoms of schizophrenia and Rett syndrome, and in early-stage clinical research it is exploring novel approaches to pain management, and cognition and neuropsychiatric symptoms in central nervous system disorders.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fintel reports that on December 12, 2023, Deutsche Bank initiated coverage of Acadia Pharmaceuticals (NASDAQ:ACAD) with a Buy recommendation. For more in-depth coverage of Acadia Pharmaceuticals, view the free, crowd-sourced company research report on Finpedia. Analyst Price Forecast Suggests 58.39% Upside As of November 27, 2023, the average one-year price target for Acadia Pharmaceuticals is 33.40. | Fintel reports that on December 12, 2023, Deutsche Bank initiated coverage of Acadia Pharmaceuticals (NASDAQ:ACAD) with a Buy recommendation. Analyst Price Forecast Suggests 58.39% Upside As of November 27, 2023, the average one-year price target for Acadia Pharmaceuticals is 33.40. The projected annual revenue for Acadia Pharmaceuticals is 597MM, a decrease of 5.51%. | Fintel reports that on December 12, 2023, Deutsche Bank initiated coverage of Acadia Pharmaceuticals (NASDAQ:ACAD) with a Buy recommendation. Analyst Price Forecast Suggests 58.39% Upside As of November 27, 2023, the average one-year price target for Acadia Pharmaceuticals is 33.40. The projected annual revenue for Acadia Pharmaceuticals is 597MM, a decrease of 5.51%. | The projected annual revenue for Acadia Pharmaceuticals is 597MM, a decrease of 5.51%. There are 538 funds or institutions reporting positions in Acadia Pharmaceuticals. The firm increased its portfolio allocation in ACAD by 14.11% over the last quarter. |
35478.0 | 2023-12-12 00:00:00 UTC | Health Care Sector Update for 12/13/2023: ACAD, ZLAB, VRTX, PFE | ACAD | https://www.nasdaq.com/articles/health-care-sector-update-for-12-13-2023%3A-acad-zlab-vrtx-pfe | nan | nan | Health care stocks advanced late Wednesday afternoon with the NYSE Health Care Index adding 1.4% and the Health Care Select Sector SPDR Fund (XLV) climbing 1.7%.
The iShares Biotechnology ETF (IBB) jumped 4%.
In corporate news, Acadia Pharmaceuticals (ACAD) shares soared 33% after a federal court granted it summary judgment in a patent case related to a Parkinson's drug, according to a Wednesday court filing.
Zai Lab (ZLAB) shares climbed 11%, a day after the company said China's National Healthcare Security Administration added Vyvgart, Nuzyra and Zejula to its 2023 reimbursement drug list.
Vertex Pharmaceuticals (VRTX) shares jumped 13% after the company said a phase 2 study of VX-548 to treat patients with diabetic peripheral neuropathy resulted in a "statistically significant and clinically meaningful reduction in the primary endpoint" of change from baseline in the weekly average of daily pain intensity.
Pfizer (PFE) tumbled 6.9% after the company said it expected 2024 adjusted earnings of $2.05 to $2.25 per diluted share on revenue of $58.5 billion to $61.5 billion. Analysts polled by Capital IQ projected adjusted EPS of $3.17 on revenue of $63.18 billion.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In corporate news, Acadia Pharmaceuticals (ACAD) shares soared 33% after a federal court granted it summary judgment in a patent case related to a Parkinson's drug, according to a Wednesday court filing. Zai Lab (ZLAB) shares climbed 11%, a day after the company said China's National Healthcare Security Administration added Vyvgart, Nuzyra and Zejula to its 2023 reimbursement drug list. Vertex Pharmaceuticals (VRTX) shares jumped 13% after the company said a phase 2 study of VX-548 to treat patients with diabetic peripheral neuropathy resulted in a "statistically significant and clinically meaningful reduction in the primary endpoint" of change from baseline in the weekly average of daily pain intensity. | In corporate news, Acadia Pharmaceuticals (ACAD) shares soared 33% after a federal court granted it summary judgment in a patent case related to a Parkinson's drug, according to a Wednesday court filing. Health care stocks advanced late Wednesday afternoon with the NYSE Health Care Index adding 1.4% and the Health Care Select Sector SPDR Fund (XLV) climbing 1.7%. Vertex Pharmaceuticals (VRTX) shares jumped 13% after the company said a phase 2 study of VX-548 to treat patients with diabetic peripheral neuropathy resulted in a "statistically significant and clinically meaningful reduction in the primary endpoint" of change from baseline in the weekly average of daily pain intensity. | In corporate news, Acadia Pharmaceuticals (ACAD) shares soared 33% after a federal court granted it summary judgment in a patent case related to a Parkinson's drug, according to a Wednesday court filing. Health care stocks advanced late Wednesday afternoon with the NYSE Health Care Index adding 1.4% and the Health Care Select Sector SPDR Fund (XLV) climbing 1.7%. Vertex Pharmaceuticals (VRTX) shares jumped 13% after the company said a phase 2 study of VX-548 to treat patients with diabetic peripheral neuropathy resulted in a "statistically significant and clinically meaningful reduction in the primary endpoint" of change from baseline in the weekly average of daily pain intensity. | In corporate news, Acadia Pharmaceuticals (ACAD) shares soared 33% after a federal court granted it summary judgment in a patent case related to a Parkinson's drug, according to a Wednesday court filing. Health care stocks advanced late Wednesday afternoon with the NYSE Health Care Index adding 1.4% and the Health Care Select Sector SPDR Fund (XLV) climbing 1.7%. The iShares Biotechnology ETF (IBB) jumped 4%. |
35479.0 | 2023-12-11 00:00:00 UTC | Wednesday's ETF Movers: FBT, URA | ACAD | https://www.nasdaq.com/articles/wednesdays-etf-movers%3A-fbt-ura | nan | nan | In trading on Wednesday, the First Trust NYSE Arca Biotechnology Index Fund ETF is outperforming other ETFs, up about 2.2% on the day. Components of that ETF showing particular strength include shares of Acadia Pharmaceuticals, up about 30.4% and shares of Vertex Pharmaceuticals, up about 9.3% on the day.
And underperforming other ETFs today is the Uranium ETF, off about 3.2% in Wednesday afternoon trading. Among components of that ETF with the weakest showing on Wednesday were shares of Uranium Energy, lower by about 13%, and shares of Nexgen Energy, lower by about 4.8% on the day.
VIDEO: Wednesday's ETF Movers: FBT, URA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF showing particular strength include shares of Acadia Pharmaceuticals, up about 30.4% and shares of Vertex Pharmaceuticals, up about 9.3% on the day. Among components of that ETF with the weakest showing on Wednesday were shares of Uranium Energy, lower by about 13%, and shares of Nexgen Energy, lower by about 4.8% on the day. VIDEO: Wednesday's ETF Movers: FBT, URA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF showing particular strength include shares of Acadia Pharmaceuticals, up about 30.4% and shares of Vertex Pharmaceuticals, up about 9.3% on the day. And underperforming other ETFs today is the Uranium ETF, off about 3.2% in Wednesday afternoon trading. Among components of that ETF with the weakest showing on Wednesday were shares of Uranium Energy, lower by about 13%, and shares of Nexgen Energy, lower by about 4.8% on the day. | Components of that ETF showing particular strength include shares of Acadia Pharmaceuticals, up about 30.4% and shares of Vertex Pharmaceuticals, up about 9.3% on the day. In trading on Wednesday, the First Trust NYSE Arca Biotechnology Index Fund ETF is outperforming other ETFs, up about 2.2% on the day. Among components of that ETF with the weakest showing on Wednesday were shares of Uranium Energy, lower by about 13%, and shares of Nexgen Energy, lower by about 4.8% on the day. | Components of that ETF showing particular strength include shares of Acadia Pharmaceuticals, up about 30.4% and shares of Vertex Pharmaceuticals, up about 9.3% on the day. In trading on Wednesday, the First Trust NYSE Arca Biotechnology Index Fund ETF is outperforming other ETFs, up about 2.2% on the day. And underperforming other ETFs today is the Uranium ETF, off about 3.2% in Wednesday afternoon trading. |
35480.0 | 2023-12-04 00:00:00 UTC | Is GSK PLC Sponsored ADR (GSK) Stock Outpacing Its Medical Peers This Year? | ACAD | https://www.nasdaq.com/articles/is-gsk-plc-sponsored-adr-gsk-stock-outpacing-its-medical-peers-this-year-0 | nan | nan | Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Is GSK (GSK) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
GSK is one of 1089 companies in the Medical group. The Medical group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. GSK is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for GSK's full-year earnings has moved 3.1% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that GSK has returned about 4.1% since the start of the calendar year. At the same time, Medical stocks have lost an average of 6.7%. This means that GSK is performing better than its sector in terms of year-to-date returns.
One other Medical stock that has outperformed the sector so far this year is Acadia Pharmaceuticals (ACAD). The stock is up 42% year-to-date.
Over the past three months, Acadia Pharmaceuticals' consensus EPS estimate for the current year has increased 19.1%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, GSK belongs to the Medical - Biomedical and Genetics industry, a group that includes 528 individual stocks and currently sits at #47 in the Zacks Industry Rank. This group has lost an average of 20.1% so far this year, so GSK is performing better in this area. Acadia Pharmaceuticals is also part of the same industry.
Going forward, investors interested in Medical stocks should continue to pay close attention to GSK and Acadia Pharmaceuticals as they could maintain their solid performance.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Going forward, investors interested in Medical stocks should continue to pay close attention to GSK and Acadia Pharmaceuticals as they could maintain their solid performance. One other Medical stock that has outperformed the sector so far this year is Acadia Pharmaceuticals (ACAD). Over the past three months, Acadia Pharmaceuticals' consensus EPS estimate for the current year has increased 19.1%. | Over the past three months, Acadia Pharmaceuticals' consensus EPS estimate for the current year has increased 19.1%. Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. One other Medical stock that has outperformed the sector so far this year is Acadia Pharmaceuticals (ACAD). | Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. One other Medical stock that has outperformed the sector so far this year is Acadia Pharmaceuticals (ACAD). Over the past three months, Acadia Pharmaceuticals' consensus EPS estimate for the current year has increased 19.1%. | One other Medical stock that has outperformed the sector so far this year is Acadia Pharmaceuticals (ACAD). Over the past three months, Acadia Pharmaceuticals' consensus EPS estimate for the current year has increased 19.1%. Acadia Pharmaceuticals is also part of the same industry. |
35481.0 | 2023-12-01 00:00:00 UTC | Acadia (ACAD) Begins Study on ACP-101 for Hyperphagia in PWS | ACAD | https://www.nasdaq.com/articles/acadia-acad-begins-study-on-acp-101-for-hyperphagia-in-pws | nan | nan | Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a late-stage study evaluating the efficacy and safety of carbetocin nasal spray (ACP-101) for the treatment of hyperphagia in Prader-Willi syndrome (PWS).
Acadia had previously acquired worldwide rights to develop and commercialize ACP-101 with the acquisition of Levo Therapeutics in June 2022.
PWS is a rare neurobehavioral genetic disorder that affects approximately 8,000 to 10,000 patients in the United States. PWS affects the functioning of the hypothalamus and other aspects of the brain giving rise to a variety of behavioral problems among different individuals.
The most common symptom of PWS is hyperphagia. Notably, hyperphagia is described as a false and unrelenting state of starvation, which is a characteristic of PWS. The patients of PWS require constant supervision to prevent life-threatening risks, including gastric rupture, irregular swallowing and choking.
There is currently no FDA-approved treatment for the hyperphagia associated with PWS, constituting a serious unmet medical need.
Year to date, shares of Acadia have gained 39.9% against the industry’s 23.2% fall.
Image Source: Zacks Investment Research
The planned phase III COMPASS PWS study will be conducted over 12 weeks to evaluate the safety and efficacy of carbetocin nasal spray 3.2 mg, which will be administered thrice daily in 170 PWS patients. The intended patient population will comprise both pediatric and adult patients aged five to 30 years.
The primary efficacy endpoint of the COMPASS PWS study is the change from baseline to week 12 on the hyperphagia questionnaire for clinical trials (HQ-CT) score. The HQ-CT is a caregiver’s assessment for hyperphagia-related behaviors.
Enrolled patients who complete the late-stage study will be given the option to participate in a long-term extension study, which is designed to investigate the safety and tolerability of long-term treatment with ACP-101.
In a previously conducted phase III study by Levo (before getting acquired by Acadia), carbetocin nasal spray 3.2 mg was observed to reduce hyperphagia-related behaviors.
Subject to the success of the phase III COMPASS PWS study, Acadia plans to submit a new drug application for the treatment of hyperphagia in PWS to the FDA.
Currently, carbetocin nasal spray enjoys the FDA’s Orphan Drug, Fast Track and Rare Pediatric Disease designations in the United States.
ACADIA Pharmaceuticals Inc. Price and Consensus
ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote
Zacks Rank and Other Stocks to Consider
Acadia currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth mentioning are Puma Biotechnology, Inc. PBYI, ADMA Biologics ADMA and Agenus AGEN. While PBYI sports a Zacks Rank #1 (Strong Buy), ADMA and AGEN carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share has increased from 67 cents to 73 cents. During the same time frame, the estimate for Puma Biotech’s 2024 earnings per share has increased from 56 cents to 62 cents. Year to date, shares of PBYI have lost 7.8%.
PBYI’s earnings beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has narrowed from 6 cents to 3 cents. The estimate for ADMA Biologics’ 2024 earnings per share is pegged at 16 cents. Year to date, shares of ADMA have lost 4.6%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
In the past 30 days, the Zacks Consensus Estimate for Agenus’ 2023 loss per share has narrowed from 77 cents to 63 cents. During the same time frame, the estimate for Agenus’ 2024 loss per share has narrowed from 70 cents to 45 cents. Year to date, shares of AGEN have plunged 67.6%.
AGEN beat estimates in one of the trailing four quarters, matching in one and missing the mark on the other two occasions, delivering an average earnings surprise of 0.49%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a late-stage study evaluating the efficacy and safety of carbetocin nasal spray (ACP-101) for the treatment of hyperphagia in Prader-Willi syndrome (PWS). In a previously conducted phase III study by Levo (before getting acquired by Acadia), carbetocin nasal spray 3.2 mg was observed to reduce hyperphagia-related behaviors. Acadia had previously acquired worldwide rights to develop and commercialize ACP-101 with the acquisition of Levo Therapeutics in June 2022. | In a previously conducted phase III study by Levo (before getting acquired by Acadia), carbetocin nasal spray 3.2 mg was observed to reduce hyperphagia-related behaviors. Click to get this free report Agenus Inc. (AGEN) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a late-stage study evaluating the efficacy and safety of carbetocin nasal spray (ACP-101) for the treatment of hyperphagia in Prader-Willi syndrome (PWS). | ACADIA Pharmaceuticals Inc. Price and Consensus ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote Zacks Rank and Other Stocks to Consider Acadia currently carries a Zacks Rank #2 (Buy). Click to get this free report Agenus Inc. (AGEN) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a late-stage study evaluating the efficacy and safety of carbetocin nasal spray (ACP-101) for the treatment of hyperphagia in Prader-Willi syndrome (PWS). | Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a late-stage study evaluating the efficacy and safety of carbetocin nasal spray (ACP-101) for the treatment of hyperphagia in Prader-Willi syndrome (PWS). Acadia had previously acquired worldwide rights to develop and commercialize ACP-101 with the acquisition of Levo Therapeutics in June 2022. Year to date, shares of Acadia have gained 39.9% against the industry’s 23.2% fall. |
35482.0 | 2023-12-01 00:00:00 UTC | bluebird bio (BLUE) Stock Gains 25.6% in a Month: Here's How | ACAD | https://www.nasdaq.com/articles/bluebird-bio-blue-stock-gains-25.6-in-a-month%3A-heres-how | nan | nan | Shares of bluebird bio BLUE have increased by 25.6% in a month compared with the industry’s growth of 0.2%.
Last month, bluebird posted better-than-expected results in the third quarter. It delivered a loss of 66 cents per share in the third quarter, narrower than the Zacks Consensus Estimate of a loss of 69 cents per share. The company delivered a loss of $92 per share in the year-ago quarter (excluding restructuring expenses).
Image Source: Zacks Investment Research
The company reported revenues of $12.4 million in the third quarter, up from $0.1 million in the year-ago quarter, beating the Zacks Consensus Estimate of $11 million. The increase of $5.4 million was primarily due to product revenues from Skysona (elivaldogene autotemcel) and Zynteglo (betibeglogene autotemcel).
We remind investors that the FDA approved Zynteglo for the treatment of beta-thalassemia in adult and pediatric patients requiring regular red blood cell transfusions on Aug 17, 2022, and Skysona for treating early, active cerebral adrenoleukodystrophy on Sept 16, 2022.
bluebird has made significant progress in the launch of Zynteglo with 16 patient starts (cell collections) for individuals suffering from beta-thalassemia.
The first commercial infusion for Syksona was completed in March 2023. Cell collection has been completed for six patients to be treated with Skysona. bluebird continues to anticipate 5-10 patient starts for Skysona this year.
bluebird bio, Inc. Price, Consensus and EPS Surprise
bluebird bio, Inc. price-consensus-eps-surprise-chart | bluebird bio, Inc. Quote
In September, bluebird announced an amendment to its agreement with Lonza, which manufactures drug products for Zyneteglo and Skysona. The amended agreement enables increased manufacturing capacity for both therapies.
Meanwhile, bluebird has an important event coming up. Its third gene therapy, lovotibeglogene autotemcel (lovo-cel), is under review in the United States. The target action date is Dec 20, 2023.
In August, bluebird bio announced that the FDA communicated that an advisory committee meeting would not be scheduled for lovo-cel.
If lovo-cel gets the FDA’s approval, it will be a significant boost for the company.
Revenues are expected to gain traction in 2024 and should fuel BLUE’s growth trajectory.
As of Sep 30, 2023, the company had cash and cash equivalents, marketable securities and a restricted cash balance of approximately $227 million, down from $291 million at the end of the previous quarter.
Based on current operating plans, bluebird expects its cash, cash equivalents and marketable securities, including anticipated cash flows from operations and excluding $53 million of restricted cash, to be sufficient for its planned operating expenses and capital expenditure requirements into the second quarter of 2024.
Zacks Rank and Other Stocks to Consider
bluebird currently has a Zacks Rank #2 (Buy).
A couple of other top-ranked stocks in the biotech sector are Entrada Therapeutics TRDA, Dynavax Technologies DVAX, and Acadia Pharmaceuticals ACAD. While TRDA sports a Zacks Rank #1 (Strong Buy), DVAX and ACAD, each carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Entrada’s loss per share estimates for 2023 have narrowed from $2.07 to 9 cents in the past 30 days. During the same period, loss estimates for 2024 narrowed to $2.04 from $2.35.
Dynavax’s loss per share estimates for 2023 have narrowed from 23 cents to 12 cents in the past 30 days. During the same period, earnings estimates for 2024 rose from 8 cents to 18 cents. Shares of DVAX have gained 28.7% year to date.
Loss estimates for Acadia have narrowed to 33 cents from 41 cents for 2023 and earnings estimates for 2024 are currently pinned at 94 cents per share. ACADIA shares have gained 39.9% year to date.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A couple of other top-ranked stocks in the biotech sector are Entrada Therapeutics TRDA, Dynavax Technologies DVAX, and Acadia Pharmaceuticals ACAD. While TRDA sports a Zacks Rank #1 (Strong Buy), DVAX and ACAD, each carry a Zacks Rank #2. Loss estimates for Acadia have narrowed to 33 cents from 41 cents for 2023 and earnings estimates for 2024 are currently pinned at 94 cents per share. | Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report bluebird bio, Inc. (BLUE) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Entrada Therapeutics, Inc. (TRDA) : Free Stock Analysis Report To read this article on Zacks.com click here. A couple of other top-ranked stocks in the biotech sector are Entrada Therapeutics TRDA, Dynavax Technologies DVAX, and Acadia Pharmaceuticals ACAD. While TRDA sports a Zacks Rank #1 (Strong Buy), DVAX and ACAD, each carry a Zacks Rank #2. | Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report bluebird bio, Inc. (BLUE) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Entrada Therapeutics, Inc. (TRDA) : Free Stock Analysis Report To read this article on Zacks.com click here. A couple of other top-ranked stocks in the biotech sector are Entrada Therapeutics TRDA, Dynavax Technologies DVAX, and Acadia Pharmaceuticals ACAD. While TRDA sports a Zacks Rank #1 (Strong Buy), DVAX and ACAD, each carry a Zacks Rank #2. | A couple of other top-ranked stocks in the biotech sector are Entrada Therapeutics TRDA, Dynavax Technologies DVAX, and Acadia Pharmaceuticals ACAD. While TRDA sports a Zacks Rank #1 (Strong Buy), DVAX and ACAD, each carry a Zacks Rank #2. Loss estimates for Acadia have narrowed to 33 cents from 41 cents for 2023 and earnings estimates for 2024 are currently pinned at 94 cents per share. |
35483.0 | 2023-11-30 00:00:00 UTC | Acadia (ACAD) Begins Alzheimer's Disease Psychosis Study (Revised) | ACAD | https://www.nasdaq.com/articles/acadia-acad-begins-alzheimers-disease-psychosis-study-revised | nan | nan | Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a mid-stage study to evaluate the safety and efficacy of its investigational candidate, ACP-204, in the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis (ADP).
ACP-204 has a novel mechanism of action, working primarily as an inverse agonist at the 5-HT2A receptor. Currently, there are no FDA-approved treatments for ADP. With ACP-204, Acadia is looking to address the large unmet medical need in this indication.
The phase II study initiated by the company is the first part of the planned phase II/III clinical program for ACP-204 in the treatment of ADP. The mid-late-stage program comprise a single phase II study and two phase III studies which have almost identical design.
Year to date, shares of Acadia have shot up 39% against the industry’s 23.8% decline.
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The initiated mid-stage study is set to enroll approximately 318 ADP patients and will evaluate treatment with two doses of ACP-204 (30 mg and 60 mg) compared with placebo. The primary endpoint of the phase II study is the change from baseline in the Scale for the Assessment of Positive Symptoms–Hallucinations and Delusions subscales total score in the sixth week.
After completing the phase II portion of the mid-late-stage clinical program for ACP-204, eligible patients will then progress into phase III. Acadia expects to enroll approximately 378 ADP patients in each of the planned phase III studies.
ACAD also reported that patients who complete the phase III studies will have the option to participate in a long-term open-label extension study.
Per the Alzheimer’s Association, more than 6.5 million people in the United States are living with Alzheimer’s disease. Of these 6.5 million people, about 30% of Alzheimer’s disease patients experience psychosis, commonly consisting of hallucinations and delusions.
These symptoms of ADP are often frequent and severe in nature and may recur over time. This takes a serious toll on the quality of life of patients living with ADP. In rare severe cases, psychosis in patients with dementia has also resulted in death.
At present, Acadia markets the first and the only FDA-approved treatment for hallucinations and delusions associated with Parkinson’s disease psychosis, Nuplazid (pimavanserin). The drug was launched in May 2016 in the U.S. market.
ACAD is also simultaneously evaluating Nuplazid in schizophrenia-negative symptoms.
ACADIA Pharmaceuticals Inc. Price and Consensus
ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote
Zacks Rank and Other Stocks to Consider
Acadia currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth mentioning are Puma Biotechnology, Inc. PBYI, ADMA Biologics ADMA and Agenus AGEN. While PBYI sports a Zacks Rank #1 (Strong Buy), ADMA and AGEN carry a Zacks Rank #2 each at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share has increased from 67 cents to 73 cents. During the same time frame, the estimate for Puma Biotech’s 2024 earnings per share has increased from 56 cents to 62 cents. Year to date, shares of PBYI have lost 8.3%.
PBYI’s earnings beat estimates in three of the last four quarters while missing the same on the remaining occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has narrowed from 6 cents to 3 cents. The estimate for ADMA Biologics’ 2024 earnings per share is pegged at 16 cents. Year to date, shares of ADMA have lost 3.9%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
In the past 30 days, the Zacks Consensus Estimate for Agenus’ 2023 loss per share has narrowed from 77 cents to 63 cents. During the same time frame, the estimate for Agenus’ 2024 loss per share has narrowed from 70 cents to 45 cents. Year to date, shares of AGEN have plunged 70.8%.
AGEN beat estimates in one of the trailing four quarters, matching in one and missing the mark on the other two occasions, delivering an average earnings surprise of 0.49%.
(We are reissuing this article to correct a mistake. The original article, issued on November 28, 2023, should no longer be relied upon.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a mid-stage study to evaluate the safety and efficacy of its investigational candidate, ACP-204, in the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis (ADP). At present, Acadia markets the first and the only FDA-approved treatment for hallucinations and delusions associated with Parkinson’s disease psychosis, Nuplazid (pimavanserin). With ACP-204, Acadia is looking to address the large unmet medical need in this indication. | ACADIA Pharmaceuticals Inc. Price and Consensus ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote Zacks Rank and Other Stocks to Consider Acadia currently carries a Zacks Rank #2 (Buy). Click to get this free report Agenus Inc. (AGEN) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a mid-stage study to evaluate the safety and efficacy of its investigational candidate, ACP-204, in the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis (ADP). | ACADIA Pharmaceuticals Inc. Price and Consensus ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote Zacks Rank and Other Stocks to Consider Acadia currently carries a Zacks Rank #2 (Buy). Click to get this free report Agenus Inc. (AGEN) : Free Stock Analysis Report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a mid-stage study to evaluate the safety and efficacy of its investigational candidate, ACP-204, in the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis (ADP). | Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a mid-stage study to evaluate the safety and efficacy of its investigational candidate, ACP-204, in the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis (ADP). ACADIA Pharmaceuticals Inc. Price and Consensus ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote Zacks Rank and Other Stocks to Consider Acadia currently carries a Zacks Rank #2 (Buy). With ACP-204, Acadia is looking to address the large unmet medical need in this indication. |
35484.0 | 2023-11-29 00:00:00 UTC | Avidity (RNA) Expands Collaboration With BMY, Shares Rise | ACAD | https://www.nasdaq.com/articles/avidity-rna-expands-collaboration-with-bmy-shares-rise | nan | nan | Shares of Avidity Biosciences, Inc. RNA surged 14.9% following the expansion of its global licensing and research collaboration with biotech giant Bristol Myers Squibb BMY.
Avidity announced a research collaboration with MyoKardia in 2021 to demonstrate the potential utility of antibody oligonucleotide conjugates (“AOCs”) in cardiac tissue. MyoKardia was acquired by Bristol Myers in 2020.
The expanded collaboration will focus on the discovery, development and commercialization of up to five cardiovascular targets leveraging Avidity's proprietary AOC platform technology, with potential cumulative payments of up to $2.3 billion.
Per the terms of the agreement, Bristol Myers will make an upfront cash payment of $60 million to Avidity. BMY will also purchase approximately $40 million of Avidity’s common stock at a price of $7.88 per share.
In addition, Avidity is entitled to receive up to approximately $1.35 billion in research and development milestone payments, up to approximately $825 million in commercial milestone payments and tiered royalties up to low double-digits on net sales. Any expenses related to clinical development, regulatory and commercialization activities arising from this collaboration will also be funded by Bristol Myers.
The infusion of cash by bigwig BMY boosted investor sentiment, leading to the rise in share price.
Shares of Avidity have plunged 68.1% year to date compared with the industry’s 23.5% decline.
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Concurrently, Avidity is advancing development programs for three rare muscle diseases – AOC 1001 for myotonic dystrophy type 1, AOC 1020 for the treatment of facioscapulohumeral muscular dystrophy and AOC 1044 for the treatment of Duchenne muscular dystrophy mutations amenable to exon 44 skipping.
Avidity aims to revolutionize the field of RNA with its proprietary AOCs, which are designed to combine the specificity of monoclonal antibodies with the precision of oligonucleotide therapies to address targets and diseases previously unreachable with existing RNA therapies.
Avidity earlier suffered a setback when the FDA placed a partial clinical hold on new participant enrollment in the phase I/II MARINA study on AOC 1001 due to a rare serious adverse event reported in a single participant in the 4 mg/kg cohort. The FDA eased the partial clinical hold on AOC 1001 in May 2023, allowing Avidity to double the number of participants in the MARINA Open-Label Extension study receiving 4 mg/kg of AOC 1001. The FDA also allowed new participant enrollment for AOC 1001 at 2 mg/kg.
Meanwhile, BMY is looking to diversify with a collaboration focused on RNA-based medicines for cardiovascular diseases with this investment. The acquisition of MyoKardia added mavacamten to its pipeline, which was approved last year by the FDA under the brand name Camzyos for the treatment of adults with symptomatic New York Heart Association class II-III obstructive hypertrophic cardiomyopathy to improve functional capacity and symptoms.
Zacks Rank and Stocks to Consider
Avidity currently has a Zacks Rank #3 (Hold). A couple of top-ranked stocks in the biotech sector are Dynavax Technologies DVAX and Acadia Pharmaceuticals ACAD, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dynavax’s loss per share estimates for 2023 have narrowed from 23 cents to 12 cents in the past 30 days. During the same period, earnings estimates for 2024 rose from 8 cents to 18 cents. Shares of DVAX have gained 24.8% year to date.
Loss estimates for Acadia have narrowed to 33 cents from 41 cents for 2023 and earnings estimates for 2024 are currently pinned at 94 cents per share. ACADIA shares have gained 40% year to date.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A couple of top-ranked stocks in the biotech sector are Dynavax Technologies DVAX and Acadia Pharmaceuticals ACAD, each carrying a Zacks Rank #2 (Buy). Loss estimates for Acadia have narrowed to 33 cents from 41 cents for 2023 and earnings estimates for 2024 are currently pinned at 94 cents per share. ACADIA shares have gained 40% year to date. | Click to get this free report Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Avidity Biosciences, Inc. (RNA) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. A couple of top-ranked stocks in the biotech sector are Dynavax Technologies DVAX and Acadia Pharmaceuticals ACAD, each carrying a Zacks Rank #2 (Buy). Loss estimates for Acadia have narrowed to 33 cents from 41 cents for 2023 and earnings estimates for 2024 are currently pinned at 94 cents per share. | Click to get this free report Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Avidity Biosciences, Inc. (RNA) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. A couple of top-ranked stocks in the biotech sector are Dynavax Technologies DVAX and Acadia Pharmaceuticals ACAD, each carrying a Zacks Rank #2 (Buy). Loss estimates for Acadia have narrowed to 33 cents from 41 cents for 2023 and earnings estimates for 2024 are currently pinned at 94 cents per share. | A couple of top-ranked stocks in the biotech sector are Dynavax Technologies DVAX and Acadia Pharmaceuticals ACAD, each carrying a Zacks Rank #2 (Buy). Loss estimates for Acadia have narrowed to 33 cents from 41 cents for 2023 and earnings estimates for 2024 are currently pinned at 94 cents per share. ACADIA shares have gained 40% year to date. |
35485.0 | 2023-11-28 00:00:00 UTC | Acadia (ACAD) Begins Alzheimer's Disease Psychosis Study | ACAD | https://www.nasdaq.com/articles/acadia-acad-begins-alzheimers-disease-psychosis-study | nan | nan | Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a mid-stage study to evaluate the safety and efficacy of its investigational candidate, ACP-204, in the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis (ADP).
ACP-204 has a novel mechanism of action, working primarily as an inverse agonist at the 5-HT2A receptor. Currently, there are no FDA-approved treatments for ADP. With ACP-204, Acadia is looking to address the large unmet medical need in this indication.
The phase II study initiated by the company is the first part of the planned phase II/III clinical program for ACP-204 in the treatment of ADP. The mid-late-stage program comprise a single phase II study and two phase III studies which have almost identical design.
Year to date, shares of Acadia have shot up 38.9% against the industry’s 22.9% decline.
Image Source: Zacks Investment Research
The initiated mid-stage study is set to enroll approximately 318 ADP patients and will evaluate treatment with two doses of ACP-204 (30 mg and 60 mg) compared with placebo. The primary endpoint of the phase II study is the change from baseline in the Scale for the Assessment of Positive Symptoms–Hallucinations and Delusions subscales total score in the sixth week.
After completing the phase II portion of the mid-late-stage clinical program for ACP-204, eligible patients will then progress into phase III. Acadia expects to enroll approximately 378 ADP patients in each of the planned phase III studies.
ACAD also reported that patients who complete the phase III studies will have the option to participate in a long-term open-label extension study.
Per the Alzheimer’s Association, more than 6.5 million people in the United States are living with Alzheimer’s disease. Of these 6.5 million people, about 30% of Alzheimer’s disease patients experience psychosis, commonly consisting of hallucinations and delusions.
These symptoms of ADP are often frequent and severe in nature and may recur over time. This takes a serious toll on the quality of life of patients living with ADP. In rare severe cases, psychosis in patients with dementia has also resulted in death.
At present, Acadia markets the first and the only FDA-approved treatment for hallucinations and delusions associated with Parkinson’s disease psychosis, Nuplazid (pimavanserin). The drug was launched in May 2016 in the U.S. market.
ACAD is also simultaneously evaluating Nuplazid in several additional studies targeting different central nervous system indications, such as dementia-related psychosis, schizophrenia inadequate response and schizophrenia-negative symptoms.
ACADIA Pharmaceuticals Inc. Price and Consensus
ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote
Zacks Rank and Other Stocks to Consider
Acadia currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, ADMA Biologics ADMA and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ADMA and AGEN carry a Zacks Rank #2 each at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Ligand’s 2023 earnings per share has increased from $5.10 to $5.33. During the same time frame, the estimate for Ligand’s 2024 earnings per share has increased from $4.59 to $4.64. Year to date, shares of LGND have lost 11.7%.
LGND’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 67.19%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has narrowed from 6 cents to 3 cents. The estimate for ADMA Biologics’ 2024 earnings per share is pegged at 16 cents. Year to date, shares of ADMA have lost 0.8%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
In the past 30 days, the Zacks Consensus Estimate for Agenus’ 2023 loss per share has narrowed from 77 cents to 63 cents. During the same time frame, the estimate for Agenus’ 2024 loss per share has narrowed from 70 cents to 45 cents. Year to date, shares of AGEN have plunged 72.5%.
AGEN beat estimates in one of the trailing four quarters, matching in one and missing the mark on the other two occasions, delivering an average earnings surprise of 0.49%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a mid-stage study to evaluate the safety and efficacy of its investigational candidate, ACP-204, in the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis (ADP). ACAD is also simultaneously evaluating Nuplazid in several additional studies targeting different central nervous system indications, such as dementia-related psychosis, schizophrenia inadequate response and schizophrenia-negative symptoms. With ACP-204, Acadia is looking to address the large unmet medical need in this indication. | ACADIA Pharmaceuticals Inc. Price and Consensus ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote Zacks Rank and Other Stocks to Consider Acadia currently carries a Zacks Rank #2 (Buy). Click to get this free report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report Agenus Inc. (AGEN) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a mid-stage study to evaluate the safety and efficacy of its investigational candidate, ACP-204, in the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis (ADP). | Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a mid-stage study to evaluate the safety and efficacy of its investigational candidate, ACP-204, in the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis (ADP). ACADIA Pharmaceuticals Inc. Price and Consensus ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote Zacks Rank and Other Stocks to Consider Acadia currently carries a Zacks Rank #2 (Buy). Click to get this free report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report Agenus Inc. (AGEN) : Free Stock Analysis Report ADMA Biologics Inc (ADMA) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. | Acadia Pharmaceuticals Inc. ACAD announced that it has initiated a mid-stage study to evaluate the safety and efficacy of its investigational candidate, ACP-204, in the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis (ADP). ACADIA Pharmaceuticals Inc. Price and Consensus ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote Zacks Rank and Other Stocks to Consider Acadia currently carries a Zacks Rank #2 (Buy). With ACP-204, Acadia is looking to address the large unmet medical need in this indication. |
35486.0 | 2023-11-27 00:00:00 UTC | Olema Pharmaceuticals (OLMA) Skyrockets 471% YTD: Here's Why | ACAD | https://www.nasdaq.com/articles/olema-pharmaceuticals-olma-skyrockets-471-ytd%3A-heres-why | nan | nan | Olema Pharmaceuticals OLMA is a clinical-stage biopharmaceutical company focused on developing next-generation targeted therapies for women’s cancers.
The company’s lead product candidate is palazestrant (OP-1250), a proprietary, orally available small molecule with dual activity as both a complete estrogen receptor (ER) antagonist (CERAN) and a selective ER degrader (SERD).
Currently, palazestrant is being evaluated in multiple studies, as monotherapy and in combination with other therapies, as a potential treatment for certain patients with metastatic breast cancer.
Year to date, shares of Olema have surged 471.4% against the industry’s 22.7% fall.
Image Source: Zacks Investment Research
This upside came after management reported encouraging data from a phase Ib/II study in May evaluating palazestrant combined with Pfizer’s PFE CDK4/6 inhibitor Ibrance (palbociclib) in patients with ER+/HER2- metastatic breast cancer.
The above results attracted interest from Wall Street, who cheered the news. Multiple analysts pointed out that the palazestrant-Ibrance combination was more effective than single-agent CDK4/6 inhibitors, which are designed to stop the growth of cancer cells.
Data from the phase Ib/II study showed that the palazestrant-Ibrance combination was safe and well tolerated, with no dose-limiting toxicities and no observed drug-drug interaction. In fact, treatment with the combination demonstrated anti-tumor activity and prolonged disease stabilization, even among those patients who were previously administered CDK4/6 inhibitors (including Pfizer’s Ibrance).
Olema intends to report updated data from the phase Ib/II study on palazestrant-Ibrance combination at the 2023 San Antonio Breast Cancer Symposium (SABCS) next month. The updated results are likely to determine whether the combination could be advanced to late-stage development.
Apart from Pfizer’s Ibrance, Olema is evaluating palazestrant in combination with Kisqali (ribociclib), another CDK4/6 inhibitor marketed by Novartis NVS, in a phase Ib/II study. Management also intends to report data from the phase Ib portion of the study at the SABCS.
The company entered into separate clinical collaboration and supply agreements with Pfizer and Novartis in 2020 for their respective CDK4/6 inhibitors. Last month, Olema expanded its collaboration with Novartis. Per the terms of the expanded partnership with Novartis, Olema will nearly double the size of the phase Ib/II study evaluating the palazestrant-Kisqali combination to around 60 patients.
Apart from the combination studies, palazestrant showed potential as a single agent in treating metastatic ER+/HER2- breast cancer. Last month, Olema reported data from a phase II study which showed that treatment with the drug achieved a median progression-free survival (PFS) of 4.6 months with a confirmed benefit rate of 40% across all 86 heavily pre-treated patients, with 42% of patients being fourth-line or later at study entry.
Based on these results, management recently started a pivotal phase III study (OPERA-01) evaluating palazestrant as monotherapy in second- and third-line metastatic breast cancer. The first patient is expected to be enrolled before this year’s end.
Currently, palazestrant is Olema’s only pipeline candidate undergoing clinical development. Apart from palazestrant, the company is planning to advance a new pipeline candidate, a novel KAT6 inhibitor, to clinical development. This new candidate, which is being developed in collaboration with Aurigene Oncology, has demonstrated the anti-tumor activity of ER+ breast cancer in preclinical studies. In this regard, management intends to submit an investigational new drug (IND) application to the FDA next year to begin clinical studies on the KAT6 inhibitor.
Olema Pharmaceuticals, Inc. Price
Olema Pharmaceuticals, Inc. price | Olema Pharmaceuticals, Inc. Quote
Zacks Rank & A Key Pick
Olema currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the overall healthcare sector is Acadia Pharmaceuticals ACAD, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 33 cents per share in the past 60 days. During the same period, the estimates for 2024 earnings per share have risen from 52 cents to 94 cents. Year to date, Acadia Pharmaceuticals’ shares have gained 40.0%.
Acadia Pharmaceuticals beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 20.69% on average. In the last reported quarter, ACAD reported an earnings surprise of 6.98%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A better-ranked stock in the overall healthcare sector is Acadia Pharmaceuticals ACAD, which carries a Zacks Rank #2 (Buy). Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 33 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 40.0%. | Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Olema Pharmaceuticals, Inc. (OLMA) : Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the overall healthcare sector is Acadia Pharmaceuticals ACAD, which carries a Zacks Rank #2 (Buy). Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 33 cents per share in the past 60 days. | Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Olema Pharmaceuticals, Inc. (OLMA) : Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the overall healthcare sector is Acadia Pharmaceuticals ACAD, which carries a Zacks Rank #2 (Buy). Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 33 cents per share in the past 60 days. | A better-ranked stock in the overall healthcare sector is Acadia Pharmaceuticals ACAD, which carries a Zacks Rank #2 (Buy). Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 33 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 40.0%. |
35487.0 | 2023-11-27 00:00:00 UTC | Theseus (THRX) Up 57% in a Month on Strategic Restructuring Plan | ACAD | https://www.nasdaq.com/articles/theseus-thrx-up-57-in-a-month-on-strategic-restructuring-plan | nan | nan | Theseus Pharmaceuticals THRX, a pre-clinical stage oncology company, is focused on developing pan-variant targeted next-generation therapies that address all major drivers of cancer treatment resistance.
The company announced that it is set to conduct a process to explore strategic alternatives to maximize shareholder value, earlier this month.
Theseus slashed its workforce by approximately 72%. The headcount reduction included the company's president of Research and Development, William C. Shakespeare, who will continue to support THRX in a consulting capacity until Jun 30, 2024.
As part of its strategic reprioritization efforts, THRX will consider a wide range of options with a focus on maximizing shareholder value, including the potential sale of assets of the company, a sale of the company and merger or other strategic action.
As of the end of September 2023, Theseus had cash, cash equivalents and marketable securities of $225.4 million on its balance sheet.
In the past month, shares of Theseus have surged 56.7% compared with the industry’s 3% rise.
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In July 2023, THRX stock suffered immensely after it discontinued enrollment in its phase I/II study and terminated the development of THE-630 in patients with gastrointestinal stromal tumors (GIST). This decision reverted the company to the pre-clinical stage.
The decision to discontinue the early-mid-stage study of THE-630 in GIST was taken after dose-limiting toxicities related to hand-foot skin reaction were observed in two patients in the 27 mg cohort. Theseus also stated that it does not believe that THE-630 has a differentiated profile at doses below 27 mg.
After the discontinuation of THE-630 in GIST, the company adopted THE-349 in non-small cell lung cancer (NSCLC) as its new lead product candidate.
The company’s lead product candidate, THE-349, is a fourth-generation epidermal growth factor receptor (EGFR) tyrosine kinase inhibitor (TKI). It is currently undergoing pre-clinical evaluation in the treatment of EGFR-mutant NSCLC that has developed resistance to first- or later-line AstraZeneca’s AZN Tagrisso (osimertinib).
Per the data observed in pre-clinical studies, THE-349 has shown potential in the inhibition of all major classes of EGFR activating and resistance mutations that occur in a post-first- or later-line Tagrisso setting.
In the second-quarter 2023 earnings release, Theseus reported that all investigational new drug (IND) application-enabling toxicology studies have been completed. The company remains on track to submit an IND application for THE-349 with the FDA in the fourth quarter of 2023.
Subject to clearance, the company expects to initiate a clinical program for THE-349 as soon as possible.
AstraZeneca received FDA approval for Tagrisso, as a monotherapy, in March 2017 for the treatment of patients with metastatic EGFR T790M mutation-positive NSCLC, whose disease has progressed on or after EGFR TKI therapy.
Last month, AZN announced that the FDA has accepted its supplemental new drug application (sNDA) for review, seeking expanded use for its blockbuster drug Tagrisso as a combination treatment in advanced lung cancer.
AstraZeneca is looking to get approval for Tagrisso in combination with chemotherapy for the first-line treatment of adult patients with locally advanced or metastatic NSCLC whose tumors have EGFR mutations.
With the FDA granting a priority review to the sNDA, a decision from the regulatory body is expected in the first quarter of 2024. The FDA generally grants a priority review to drugs with the potential to treat a serious condition.
Theseus Pharmaceuticals, Inc. Price and Consensus
Theseus Pharmaceuticals, Inc. price-consensus-chart | Theseus Pharmaceuticals, Inc. Quote
Zacks Rank and Stocks to Consider
Theseus currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND and Acadia Pharmaceuticals ACAD. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Ligand’s 2023 earnings per share has increased from $5.10 to $5.33. During the same time frame, the estimate for Ligand’s 2024 earnings per share has increased from $4.59 to $4.64. In the past month, shares of LGND have gained 18.1%.
LGND’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 67.19%.
In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 33 cents. The estimate for Acadia’s 2024 earnings per share is pegged at 94 cents. In the past month, shares of ACAD have risen 0.3%.
ACAD beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average earnings surprise of 20.69%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND and Acadia Pharmaceuticals ACAD. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD carries a Zacks Rank #2 (Buy) at present. In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 33 cents. | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Theseus Pharmaceuticals, Inc. (THRX) : Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND and Acadia Pharmaceuticals ACAD. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD carries a Zacks Rank #2 (Buy) at present. | Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Theseus Pharmaceuticals, Inc. (THRX) : Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND and Acadia Pharmaceuticals ACAD. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD carries a Zacks Rank #2 (Buy) at present. | Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND and Acadia Pharmaceuticals ACAD. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD carries a Zacks Rank #2 (Buy) at present. In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 33 cents. |
35488.0 | 2023-11-24 00:00:00 UTC | Atara Biotherapeutics (ATRA) Slumps 57% in a Month: Here's Why | ACAD | https://www.nasdaq.com/articles/atara-biotherapeutics-atra-slumps-57-in-a-month%3A-heres-why | nan | nan | Atara Biotherapeutics ATRA is a biotech company focused on developing off-the-shelf cell therapies for difficult-to-treat cancers and autoimmune conditions.
The company utilizes its proprietary technology platform to develop novel therapies that target Epstein-Barr virus (EBV)-driven diseases.
The most advanced T-cell immunotherapy program in Atara’s pipeline is tabelecleucel (tab-cel). It is currently being evaluated in a phase III study in the United States for EBV-associated post-transplant lymphoproliferative disease (EBV+ PTLD). The therapy received approval in Europe last year for EBV+ PTLD indication. It is being marketed with the trade name Ebvallo by Pierre Fabre Medicament under an exclusive commercialization and license agreement.
Since the past month, shares of Atara have plunged 56.7% against the industry’s breakeven growth.
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The downside was due to the failure of the phase II EMBOLD study evaluating ATA188 in non-active progressive multiple sclerosis (PMS). The study failed to meet its primary endpoint of confirmed disability improvement (CDI) following 12 months of treatment with the therapy. Data from the study showed that treatment with ATA188 led to a 6% disability improvement compared with a 16% improvement in the placebo group.
The reported figures raise questions about the clinical efficacy of ATA188. Data from a previously reported phase I study showed that patients treated with the therapy had achieved 33% disability improvement. Also, Atara had estimated improvement rates in the placebo group of the EMBOLD study to lie in the range of 4-6%. Management is actively reviewing these results to understand the disparity in data.
Though management intends to use the understanding from the review to determine the program’s future, it has already decided to reduce expenses on ATA188 and focus the company’s resources on advancing its allogenic CAR-T pipeline. As a result of this decision and its recent partnership expansion with Pierre Fabre, Atara expects its cash runway to extend beyond third-quarter 2025.
Earlier this month, Atara expanded its partnership with Pierre Fabre to exclusively commercialize tab-cel in the United States and the remaining global commercial markets. In exchange, Atara is eligible to receive up to $640 million (including $30 million as an upfront cash payment) and significant double-digit tiered royalty on net sales.
Atara had previously shared an interim update on the EMBOLD study in July last year, which showed that the dataset was not sufficient to “draw conclusions” and that it would continue the study until the primary analysis of the primary endpoint at 12 months.
Currently, Atara’s pipeline consists mainly of next-generation CAR-T and allogenic CAR-T cell (AlloCAR T) therapies. Over the coming year, Atara intends to present preclinical data on its CD19-CD20 CAR-T candidate ATA3431 and preliminary phase 1 data on its CD19 CAR-T ATA3219 in lymphoma patients. Management also wants to start clinical studies on ATA3219 in autoimmune diseases.
Atara Biotherapeutics, Inc. Price
Atara Biotherapeutics, Inc. price | Atara Biotherapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Atara currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 33 cents per share in the past 60 days. During the same period, the estimates for 2024 earnings per share have risen from 52 cents to 94 cents. Year to date, Acadia Pharmaceuticals’ shares have gained 38.1%.
Acadia Pharmaceuticals beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 20.69% on average. In the last reported quarter, ACAD reported an earnings surprise of 6.98%.
In the past 60 days, estimates for Allogene Therapeutics’ 2023 loss per share have narrowed from $2.25 to $2.10. During the same period, the estimates for 2024 loss per share have improved from $2.22 to $2.00. Shares of ALLO are down 56.8% in the year-to-date period.
Earnings of Allogene Therapeutics beat estimates in three of the last four quarters while meeting the mark on one occasion, witnessing an average earnings surprise of 9.87%. In the last reported quarter, Allogene’s earnings beat estimates by 30.19%.
AnaptysBio’s loss estimate has narrowed from $6.57 to $6.08 per share in the past 60 days. During the same period, the loss estimates per share for 2024 have narrowed from $6.93 to $6.38. Shares of ANAB have lost 54.2% in the year-to-date period.
The earnings of AnaptysBio beat estimates in two of the last four quarters while missing the mark on the other two occasions, posting a negative average earnings surprise of 6.48%. AnaptysBio’s earnings beat estimates by 18.02%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2 (Buy). Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 33 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 38.1%. | Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2 (Buy). Click to get this free report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Atara Biotherapeutics, Inc. (ATRA) : Free Stock Analysis Report AnaptysBio, Inc. (ANAB) : Free Stock Analysis Report Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 33 cents per share in the past 60 days. | Click to get this free report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Atara Biotherapeutics, Inc. (ATRA) : Free Stock Analysis Report AnaptysBio, Inc. (ANAB) : Free Stock Analysis Report Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2 (Buy). Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 33 cents per share in the past 60 days. | Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2 (Buy). Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 33 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 38.1%. |
35489.0 | 2023-11-24 00:00:00 UTC | Zacks Industry Outlook Highlights Gilead Sciences, CRISPR Therapeutics, ACADIA Pharmaceuticals, Dynavax and Ligand Pharmaceuticals | ACAD | https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-gilead-sciences-crispr-therapeutics-acadia | nan | nan | For Immediate Release
Chicago, IL – November 24, 2023 – Today, Zacks Equity Research discusses Gilead Sciences, Inc. GILD, CRISPR Therapeutics AG CRSP, ACADIA Pharmaceuticals Inc. ACAD, Dynavax DVAX and Ligand Pharmaceuticals Inc. LGND.
Industry: Biotech
Link: https://www.zacks.com/commentary/2187656/5-biotech-stocks-likely-to-thrive-as-industry-prospects-look-bright
It has been a choppy ride for the biotech industry in 2023 in an uncertain macroeconomic environment. Nevertheless, the economic scenario does look upbeat from here as interest rates aren't expected to be increased further for the time being. Most companies in the biotech sector posted decent third-quarter results.
Moreover, the outlook provided by the companies indicates bright prospects driven by new drug approvals and positive pipeline updates. With the pandemic behind us, it is regular business. Biotech companies are now looking to bolster their product portfolios and pipelines through collaborations and buyouts.
Hence, M&A is back in the spotlight. Given the continuous need for innovative medical treatments, irrespective of the state of the economy, the biotech industry can be a haven despite the inherent volatility and uncertain macroeconomic environment.
Biotech companies like Gilead Sciences, Inc., CRISPR Therapeutics AG, ACADIA Pharmaceuticals Inc., Dynavax and Ligand Pharmaceuticals Inc. are poised to outperform the volatile sector.
Industry Description
The Zacks Biomedical and Genetics industry includes biopharmaceutical and biotechnology companies that develop high-profile drugs using path-breaking technology. These biologically processed drugs, which address virology, neuroscience, metabolism and rare diseases, are manufactured using live organisms. As technology becomes paramount to improving global health, the main goal of biotech companies is to use innovative technology to create breakthrough treatments.
Quite a few companies in this space are developing vaccines as well as using modern technology. Given the dynamic and evolving nature of technology, the sector is perceived to be riskier than the more stable large-cap pharma or drug industry.
4 Trends Shaping the Future of the Biotech Industry
Innovation, Execution Hold the Key: As only a few companies in this industry have approved drugs in their portfolio, the focus is primarily on the performance of high-profile drugs and pipeline development. Most companies spend millions and billions to create a drug with path-breaking technology, which results in significant research and development expenditure. Hence, it takes several years before a biotech company turns profitable.
Additionally, successful commercialization is the key to higher drug uptake, as smaller biotechs generally lack the funds and expertise to reach the targeted population. This, in turn, prompts collaboration deals with either pharma or biotech bigwigs, wherein sales are shared or royalties are received. Moreover, it may take quite a few years for any newly-approved drug to contribute significantly to its company's top line.
M&A in Spotlight: Consolidation has always taken center stage in the biotech industry. This is because leading pharma/biotech companies look to diversify their revenue base in the face of dwindling sales of high-profile drugs. After a lull of almost two years, pharma and pharma/biotech bigwigs are now looking to bolster their portfolios. The influx of cash from big pharma further propels the biotech sector.
Bristol Myers recently announced that it would acquire oncology-focused company Mirati Therapeutics for a total equity value of $4.8 billion-plus contingent value right of approximately $1.0 billion. Earlier, Novartis acquired Chinook Therapeutics. Biogen acquired Reata Pharmaceuticals, Inc. While oncology and immuno-oncology are the key focus areas, treatments for obesity, rare diseases and gene-editing companies also hold potential, making them lucrative investment areas.
An attractive pipeline candidate is the key lure for these companies. Cost synergies in research and development are added benefits, as quite a few smaller biotech companies are using innovative technologies to develop drugs and treatments.
New Drug Approvals Boost Prospects: With the pandemic creating havoc and the focus mostly on coronavirus treatments in the last three years, the industry saw a slowdown in new drug approvals for other diseases apart from COVID-19 treatments. Nevertheless, with increasing R&D spend in 2023 and most companies looking to diversify, new drug approvals are likely to see an acceleration going forward.
Pipeline Setbacks & Competition Hurt: Pipeline setbacks are key deterrents for biotech companies, given the exorbitant cost of developing drugs using expensive technology. Most drugs/therapies take years to gain a regulatory nod. An unfavorable outcome from a crucial trial on a promising candidate is a huge setback, particularly for smaller biotechs, which are mostly one-trick ponies. The leading biotechs face other headwinds, including declining sales of high-profile drugs due to intensifying competition.
Zacks Industry Rank Indicates Bright Prospects
The group's Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks.
The Zacks Biomedical and Genetics industry currently carries a Zacks Industry Rank #43, which places it among the top 17% of more than 251 Zacks industries. The rank mirrors a bright outlook for the space, probably due to the consistent demand for better medical drugs/treatments. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few biotech stocks that are well-positioned to beat the industry based on a strong portfolio/pipeline, let's take a look at the industry's stock market performance and current valuation.
Industry Versus S&P 500 & Sector
The Zacks Biomedical and Genetics industry is a 469-stock group within the broader Zacks Medical sector. It has underperformed the S&P 500 composite and the Zacks Medical sector year to date.
The stocks in this industry have declined 22.9% compared with the Zacks Medical sector decline of 9.7%. The S&P 500 composite has risen 19.3% in the said time frame.
Industry's Current Valuation
Since most companies in the biotech sector do not have approved drugs, valuing these companies becomes a complex process. On the basis of the trailing 12-month price-to-sales ratio (P/S TTM), which is commonly used for valuing biotech companies with approved portfolios of drugs, the industry is currently trading at 2.16X compared with the S&P 500's 3.82 and the Zacks Medical sector's 2.91.
Over the last five years, the industry has traded as high as 3.51X, as low as 1.85X and at a median of 2.64X.
5 Biotech Stocks Worth Buying
Ligand's business model creates value for stockholders by developing or acquiring royalty revenue-generating assets supported by an efficient and low corporate cost structure. Ligand's Captisol technology has resulted in partnerships with several leading drug companies, providing it with funds through milestone and royalty payments.
The company has forged collaborations with leading pharma/biotechs like Amgen, Merck and Gilead among others. The spin-off of its OmniAb business into a separate entity should accelerate growth. Concurrent with the third-quarter results, the company increased its sales and earnings guidance for 2023.
Ligand currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for 2023 earnings per share has increased 12 cents to $5.10 in the past 60 days. Earnings estimates for 2024 have jumped from $4.26 per share to $4.59 in the same timeframe.
Gilead Sciences is a pioneer in developing drugs for the treatment of human immunodeficiency virus (HIV) and oncology diseases. Its HIV treatment, Biktarvy, has become the number one prescribed regimen for both treatment-naïve and switch patients. Gilead is looking to expand beyond antivirals into the lucrative oncology market. Cell therapies like Yescrata and Tecartus are showing strong momentum and should drive further growth on label expansions.
Gilead's acquisition of an oncology company added Trodelvy (sacituzumabgovitecan-hziy), a first-in-class antibody-drug conjugate, to its portfolio. The addition of Trodelvy has accelerated the company's efforts to develop a strong and diverse oncology portfolio and reduced dependence on its virology business. Trodvely has put up a robust performance and boosted the top line.
Earnings estimates for 2023 have risen by 9 cents in the past 30 days to $6.74 and by 6 cents to $7.44 for 2024. Gilead currently carries a Zacks Rank #2 (Buy).
CRISPR Therapeutics is a leading gene editing company focused on developing CRISPR/Cas9-based therapeutics, which promise huge potential. Its lead product candidate, exa-cel, is being developed in partnership with Vertex Pharmaceuticals. The U.K. Medicines and Healthcare products Regulatory Agency recently granted conditional marketing authorization to exa-cel for the treatment of sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT) under the brand name Casgevy.
The companies have completed the biologics license application submissions with the FDA for exa-cel in SCD and TDT indications, and a final decision is expected by Dec 8, 2023 and Mar 30, 2024, respectively. A potential approval will be a significant boost for CRSP.
CRSP has had a phenomenal run, with shares surging 66.2% year to date. Loss estimates for 2023 have narrowed by $1.22 in the past 30 days to $3.44 and by 93 cents to $5.51 for 2024. CRSP currently carries a Zacks Rank #2.
Acadia is focused on developing innovative medicines to address unmet medical needs in central nervous system disorders. Lead drug Nuplazid (pimavanserin) is the first and the only FDA-approved treatment for hallucinations and delusions associated with Parkinson's disease psychosis. Several additional studies on Nuplazid, targeting different types of neurological and psychiatric disorders, are presently ongoing. Sales of the drug have witnessed a steady increase and label expansions of the drug will boost uptake further. The approval of Daybue has diversified the portfolio and will reduce the burden on Nuplazid.
Loss estimates for 2023 have narrowed to 34 cents from 41 cents for 2023 while the earnings estimate for 2024 currently stands at 90 cents per share. The company currently has a Zacks Rank #2. ACADIA shares have gained 41% so far this year.
Dynavax, a commercial-stage biopharmaceutical company, is developing and commercializing innovative vaccines against infectious diseases. It has two commercial products, HEPLISAV-B vaccine (Hepatitis B Vaccine [Recombinant], Adjuvanted), which is approved in the United States and the European Union for the prevention of infection caused by all known subtypes of hepatitis B virus in adults 18 years of age and older, and CpG 1018 adjuvant, currently used in multiple adjuvanted COVID-19 vaccines. HEPLISAV-B continued to maintain a strong market share and the company is also working to expand its label.
Dynavax is also advancing CpG 1018 adjuvant as a premier vaccine adjuvant with adjuvanted vaccine clinical programs for shingles and Tdap. The company has also formed global research collaborations and partnerships focused on adjuvanted vaccines for COVID-19, seasonal influenza, universal influenza and plague.
Loss estimates for 2023 have narrowed to 12 cents from 23 cents for 2023 in the past 60 days, while the earnings estimate for 2024 currently stands at 18 cents per share. The company currently has a Zacks Rank #2. Shares of DVAX have gained 27.2% year to date.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – November 24, 2023 – Today, Zacks Equity Research discusses Gilead Sciences, Inc. GILD, CRISPR Therapeutics AG CRSP, ACADIA Pharmaceuticals Inc. ACAD, Dynavax DVAX and Ligand Pharmaceuticals Inc. LGND. Biotech companies like Gilead Sciences, Inc., CRISPR Therapeutics AG, ACADIA Pharmaceuticals Inc., Dynavax and Ligand Pharmaceuticals Inc. are poised to outperform the volatile sector. Acadia is focused on developing innovative medicines to address unmet medical needs in central nervous system disorders. | For Immediate Release Chicago, IL – November 24, 2023 – Today, Zacks Equity Research discusses Gilead Sciences, Inc. GILD, CRISPR Therapeutics AG CRSP, ACADIA Pharmaceuticals Inc. ACAD, Dynavax DVAX and Ligand Pharmaceuticals Inc. LGND. Biotech companies like Gilead Sciences, Inc., CRISPR Therapeutics AG, ACADIA Pharmaceuticals Inc., Dynavax and Ligand Pharmaceuticals Inc. are poised to outperform the volatile sector. Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – November 24, 2023 – Today, Zacks Equity Research discusses Gilead Sciences, Inc. GILD, CRISPR Therapeutics AG CRSP, ACADIA Pharmaceuticals Inc. ACAD, Dynavax DVAX and Ligand Pharmaceuticals Inc. LGND. Biotech companies like Gilead Sciences, Inc., CRISPR Therapeutics AG, ACADIA Pharmaceuticals Inc., Dynavax and Ligand Pharmaceuticals Inc. are poised to outperform the volatile sector. | For Immediate Release Chicago, IL – November 24, 2023 – Today, Zacks Equity Research discusses Gilead Sciences, Inc. GILD, CRISPR Therapeutics AG CRSP, ACADIA Pharmaceuticals Inc. ACAD, Dynavax DVAX and Ligand Pharmaceuticals Inc. LGND. Biotech companies like Gilead Sciences, Inc., CRISPR Therapeutics AG, ACADIA Pharmaceuticals Inc., Dynavax and Ligand Pharmaceuticals Inc. are poised to outperform the volatile sector. Acadia is focused on developing innovative medicines to address unmet medical needs in central nervous system disorders. |
35490.0 | 2023-11-22 00:00:00 UTC | MorphoSys (MOR) Down 22% on Mixed Data From Myelofibrosis Study | ACAD | https://www.nasdaq.com/articles/morphosys-mor-down-22-on-mixed-data-from-myelofibrosis-study | nan | nan | Shares of MorphoSys MOR lost 22.3% on Nov 21 after management announced top-line results from the phase III MANIFEST-2 study evaluating pelabresib plus Jakafi (ruxolitinib) in JAK inhibitor-naïve patients with myelofibrosis.
The MANIFEST-2 study met its primary endpoint of at least a 35% or greater reduction in spleen volume (“SVR35”) following 24 weeks of treatment with pelabresib/Jakafi combination. Data from the study showed that 66% of patients who were administered the combination achieved the SVR35 compared with 35% of those participants who received a placebo plus Jakafi. Reduction in spleen size is an important clinical endpoint in myelofibrosis because spleen enlargement reflects disease activity and can cause significant pain and discomfort.
However, the study did not meet its key secondary endpoints assessing symptom improvement — at least a 50% reduction in total symptom score (TSS50) and absolute change in total symptom score (TSS) at week 24. Though the results showed a strong positive trend favoring the pelabresib/Jakafi combination, the results were in close proximity to those treated in the placebo group.
Data from the study showed that 52% of patients who received pelabresib/Jakafi combination achieved the TSS50 endpoint compared with 46% of study participants who received placebo plus Jakafi.
This close proximity of pelabresib/Jakafi combination results with placebo, did not sit well with the investors, likely leading to the fall in share price. Year to date, shares of MorphoSys have risen 27.1% against the industry’s 23.7% decline.
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Despite the mixed results, MorphoSys will discuss the results with the FDA and EMA. Management believes that combining a JAK inhibitor like Jakafi and a BET inhibitor like pelabresib suggests synergistic benefits. It intends to submit regulatory applications in the United States and Europe for the pelabresib/Jakafi combination in myelofibrosis by mid-2024.
Myelofibrosis is a form of blood cancer that has limited treatment options. Currently, treatments with JAK inhibitors are the standard of care for treating symptoms of myelofibrosis rather than acting as a cure.
Jakafi is marketed by Incyte INCY, which is approved by the FDA to treat patients with polycythemia vera (“PV”) who have had an inadequate response to or are intolerant to hydroxyurea.
MorphoSys has only one marketed drug in its pipeline, Monjuvi (Tafasitamab), which is marketed in partnership with Incyte. The drug was approved by the FDA in 2020 in combination with lenalidomide for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) who are not eligible for autologous stem cell transplant. While Incyte and MorphoSys co-commercialize Monjuvi in the United States, Incyte is solely responsible for marketing the drug outside the country under the brand name Minjuvi.
MorphoSys AG Unsponsored ADR Price
MorphoSys AG Unsponsored ADR price | MorphoSys AG Unsponsored ADR Quote
Zacks Rank & Other Stock to Consider
MorphoSys currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD and AnaptysBio ANAB, all carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. During the same period, the estimates for 2024 earnings per share have risen from 52 cents to 90 cents. Year to date, Acadia Pharmaceuticals’ shares have gained 41.0%.
Acadia Pharmaceuticals beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 20.69% on average. In the last reported quarter, ACAD reported an earnings surprise of 6.98%.
AnaptysBio’s loss estimate has narrowed from $6.57 to $6.08 per share in the past 60 days. During the same period, the loss estimates per share for 2024 have narrowed from $6.93 to $6.38. Shares of ANAB have lost 54.3% in the year-to-date period.
The earnings of AnaptysBio beat estimates in two of the last four quarters while missing the mark on the other two occasions, posting a negative average earnings surprise of 6.48%. AnaptysBio’s earnings beat estimates by 18.02%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 41.0%. | Click to get this free report Incyte Corporation (INCY) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report AnaptysBio, Inc. (ANAB) : Free Stock Analysis Report MorphoSys AG Unsponsored ADR (MOR) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. | Click to get this free report Incyte Corporation (INCY) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report AnaptysBio, Inc. (ANAB) : Free Stock Analysis Report MorphoSys AG Unsponsored ADR (MOR) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. | Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 41.0%. |
35491.0 | 2023-11-22 00:00:00 UTC | Gain Therapeutics (GANX) Down 25% on Issue of New Common Stock | ACAD | https://www.nasdaq.com/articles/gain-therapeutics-ganx-down-25-on-issue-of-new-common-stock | nan | nan | Gain Therapeutics GANX announced that it is floating a secondary issue of common stock and warrants, partly via a public offering as well as private placement, approximately amounting to $9.4 million.
With regard to the public issue, Gain Therapeutics will issue $2.2 million shares at a price of $2.005 each. Per the terms of the offer, every 2 shares of common stock will be accompanied by a warrant. Each warrant is eligible for the purchase of one share at an exercise price of $2.75 per share. This warrant will be exercisable immediately upon issuance of the common stock and valid for five years from the issuance date.
GANX also granted an option to underwriters of the issue to purchase an additional 15% of shares of common stock and/or warrants at the public offering price.
Alongside the public offering, Gain also plans to concurrently complete a private placement offer of 2.5 million shares of common stock to an accredited investor at a price of $2.00 each. Unlike the public offering, each share issued under the private placement will be accompanied by a warrant. Though each warrant is also eligible for the purchase of one share at an exercise price of $2.75 per share, it will be exercisable beginning six months after the issuance date and valid for five years of issuance.
GANX plans to use the net proceeds from this new issue and its existing cash balance to support the clinical and non-clinical development of its lead pipeline candidate GT-02287 in neurodegenerative diseases. Management also intends to use the proceeds for its general corporate purposes.
Shares of Gain Therapeutics plummeted 24.7% on Nov 21 after the announcement. The fall in share price was likely attributable to the issuance of a large number of shares, diluting the company’s current shareholder base. Per an SEC filing, its common stock outstanding as of Nov 17, 2023, stood at approximately 11.8 million. Notably, the secondary issue accounts for the issuance of common stock representing around 40% of the current outstanding shares, considering a scenario where no warrants are exercised. In case the warrants are exercised, around 70% of stocks are likely to be issued. The issue price per share also did not go well with investors, which was at a discount to the closing price on Nov 20, with the stock closing at $2.72.
Shares on GANX have declined 33.9% in the year so far compared with the industry’s 12.6% fall.
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The secondary offerings are expected to close by Nov 24, 2023.
Gain Therapeutics has only one pipeline in clinical development, GT-02287, which is being evaluated in a phase I study for treating GBA1 Parkinson’s disease (GBA1-PD)
This secondary stock offering will strengthen GANX’s financial position. Earlier this month, management had said its existing cash balance, which stood at $12.3 million as of September 2023-end, would dry out by third-quarter 2024. This new cash inflow will enable management to fund its business plans and extend the existing cash runway.
Gain Therapeutics, Inc. Price
Gain Therapeutics, Inc. price | Gain Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Gain Therapeutics carries a Zacks Rank #3 (Hold) at present. Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. During the same period, the estimates for 2024 earnings per share have risen from 52 cents to 90 cents. Year to date, Acadia Pharmaceuticals’ shares have gained 41.0%.
Acadia Pharmaceuticals beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 20.69% on average. In the last reported quarter, ACAD reported an earnings surprise of 6.98%.
In the past 60 days, estimates for Allogene Therapeutics’ 2023 loss per share have narrowed from $2.25 to $2.10. During the same period, the estimates for 2024 loss per share have improved from $2.22 to $2.00. Shares of ALLO are down 55.2% in the year-to-date period.
Earnings of Allogene Therapeutics beat estimates in three of the last four quarters while meeting the mark on one occasion, witnessing an average earnings surprise of 9.87%. In the last reported quarter, Allogene’s earnings beat estimates by 30.19%.
AnaptysBio’s loss estimate has narrowed from $6.57 to $6.08 per share in the past 60 days. During the same period, the loss estimates per share for 2024 have narrowed from $6.93 to $6.38. Shares of ANAB have lost 54.3% in the year-to-date period.
The earnings of AnaptysBio beat estimates in two of the last four quarters while missing the mark on the other two occasions, posting a negative average earnings surprise of 6.48%. AnaptysBio’s earnings beat estimates by 18.02%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 41.0%. | Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2. Click to get this free report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report AnaptysBio, Inc. (ANAB) : Free Stock Analysis Report Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report Gain Therapeutics, Inc. (GANX) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. | Click to get this free report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report AnaptysBio, Inc. (ANAB) : Free Stock Analysis Report Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report Gain Therapeutics, Inc. (GANX) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. | Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 41.0%. |
35492.0 | 2023-11-22 00:00:00 UTC | 5 Biotech Stocks Likely to Thrive as Industry Prospects Look Bright | ACAD | https://www.nasdaq.com/articles/5-biotech-stocks-likely-to-thrive-as-industry-prospects-look-bright | nan | nan | It has been a choppy ride for the biotech industry in 2023 in an uncertain macroeconomic environment. Nevertheless, the economic scenario does look upbeat from here as interest rates aren’t expected to be increased further for the time being. Most companies in the biotech sector posted decent third-quarter results. Moreover, the outlook provided by the companies indicates bright prospects driven by new drug approvals and positive pipeline updates. With the pandemic behind us, it is regular business. Biotech companies are now looking to bolster their product portfolios and pipelines through collaborations and buyouts. Hence, M&A is back in the spotlight. Given the continuous need for innovative medical treatments, irrespective of the state of the economy, the biotech industry can be a haven despite the inherent volatility and uncertain macroeconomic environment.
Biotech companies like Gilead Sciences, Inc. GILD, CRISPR Therapeutics AG CRSP, ACADIA Pharmaceuticals Inc. ACAD, Dynavax DVAX and Ligand Pharmaceuticals Incorporated LGND are poised to outperform the volatile sector.
Industry Description
The Zacks Biomedical and Genetics industry includes biopharmaceutical and biotechnology companies that develop high-profile drugs using path-breaking technology. These biologically processed drugs, which address virology, neuroscience, metabolism and rare diseases, are manufactured using live organisms. As technology becomes paramount to improving global health, the main goal of biotech companies is to use innovative technology to create breakthrough treatments. Quite a few companies in this space are developing vaccines as well as using modern technology. Given the dynamic and evolving nature of technology, the sector is perceived to be riskier than the more stable large-cap pharma or drug industry.
4 Trends Shaping the Future of the Biotech Industry
Innovation, Execution Hold the Key: As only a few companies in this industry have approved drugs in their portfolio, the focus is primarily on the performance of high-profile drugs and pipeline development. Most companies spend millions and billions to create a drug with path-breaking technology, which results in significant research and development expenditure. Hence, it takes several years before a biotech company turns profitable. Additionally, successful commercialization is the key to higher drug uptake, as smaller biotechs generally lack the funds and expertise to reach the targeted population. This, in turn, prompts collaboration deals with either pharma or biotech bigwigs, wherein sales are shared or royalties are received. Moreover, it may take quite a few years for any newly-approved drug to contribute significantly to its company’s top line.
M&A in Spotlight: Consolidation has always taken center stage in the biotech industry. This is because leading pharma/biotech companies look to diversify their revenue base in the face of dwindling sales of high-profile drugs. After a lull of almost two years, pharma and pharma/biotech bigwigs are now looking to bolster their portfolios. The influx of cash from big pharma further propels the biotech sector. Bristol Myers recently announced that it would acquire oncology-focused company Mirati Therapeutics for a total equity value of $4.8 billion-plus contingent value right of approximately $1.0 billion. Earlier, Novartis acquired Chinook Therapeutics. Biogen acquired Reata Pharmaceuticals, Inc. While oncology and immuno-oncology are the key focus areas, treatments for obesity, rare diseases and gene-editing companies also hold potential, making them lucrative investment areas. An attractive pipeline candidate is the key lure for these companies. Cost synergies in research and development are added benefits, as quite a few smaller biotech companies are using innovative technologies to develop drugs and treatments.
New Drug Approvals Boost Prospects: With the pandemic creating havoc and the focus mostly on coronavirus treatments in the last three years, the industry saw a slowdown in new drug approvals for other diseases apart from COVID-19 treatments. Nevertheless, with increasing R&D spend in 2023 and most companies looking to diversify, new drug approvals are likely to see an acceleration going forward.
Pipeline Setbacks & Competition Hurt: Pipeline setbacks are key deterrents for biotech companies, given the exorbitant cost of developing drugs using expensive technology. Most drugs/therapies take years to gain a regulatory nod. An unfavorable outcome from a crucial trial on a promising candidate is a huge setback, particularly for smaller biotechs, which are mostly one-trick ponies. The leading biotechs face other headwinds, including declining sales of high-profile drugs due to intensifying competition.
Zacks Industry Rank Indicates Bright Prospects
The group’s Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks.
The Zacks Biomedical and Genetics industry currently carries a Zacks Industry Rank #43, which places it among the top 17% of more than 251 Zacks industries. The rank mirrors a bright outlook for the space, probably due to the consistent demand for better medical drugs/treatments. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few biotech stocks that are well-positioned to beat the industry based on a strong portfolio/pipeline, let’s take a look at the industry’s stock market performance and current valuation.
Industry Versus S&P 500 & Sector
The Zacks Biomedical and Genetics industry is a 469-stock group within the broader Zacks Medical sector. It has underperformed the S&P 500 composite and the Zacks Medical sector year to date.
The stocks in this industry have declined 22.9% compared with the Zacks Medical sector decline of 9.7%. The S&P 500 composite has risen 19.3% in the said time frame.
Year-to-Date Price Performance
Industry's Current Valuation
Since most companies in the biotech sector do not have approved drugs, valuing these companies becomes a complex process. On the basis of the trailing 12-month price-to-sales ratio (P/S TTM), which is commonly used for valuing biotech companies with approved portfolios of drugs, the industry is currently trading at 2.16X compared with the S&P 500’s 3.82 and the Zacks Medical sector's 2.91.
Over the last five years, the industry has traded as high as 3.51X, as low as 1.85X and at a median of 2.64X, as the chart below shows.
Price/Sales TTM
5 Biotech Stocks Worth Buying
Ligand’s business model creates value for stockholders by developing or acquiring royalty revenue-generating assets supported by an efficient and low corporate cost structure. Ligand’s Captisol technology has resulted in partnerships with several leading drug companies, providing it with funds through milestone and royalty payments. The company has forged collaborations with leading pharma/biotechs like Amgen, Merck and Gilead among others. The spin-off of its OmniAb business into a separate entity should accelerate growth. Concurrent with the third-quarter results, the company increased its sales and earnings guidance for 2023.
Ligand currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for 2023 earnings per share has increased 12 cents to $5.10 in the past 60 days. Earnings estimates for 2024 have jumped from $4.26 per share to $4.59 in the same timeframe.
Price and Consensus: LGND
Gilead Sciences is a pioneer in developing drugs for the treatment of human immunodeficiency virus (HIV) and oncology diseases. Its HIV treatment, Biktarvy, has become the number one prescribed regimen for both treatment-naïve and switch patients. Gilead is looking to expand beyond antivirals into the lucrative oncology market. Cell therapies like Yescrata and Tecartus are showing strong momentum and should drive further growth on label expansions.
Gilead’s acquisition of an oncology company added Trodelvy (sacituzumabgovitecan-hziy), a first-in-class antibody-drug conjugate, to its portfolio. The addition of Trodelvy has accelerated the company’s efforts to develop a strong and diverse oncology portfolio and reduced dependence on its virology business. Trodvely has put up a robust performance and boosted the top line.
Earnings estimates for 2023 have risen by 9 cents in the past 30 days to $6.74 and by 6 cents to $7.44 for 2024. Gilead currently carries a Zacks Rank #2 (Buy).
Price and Consensus: GILD
CRISPR Therapeutics is a leading gene editing company focused on developing CRISPR/Cas9-based therapeutics, which promise huge potential. Its lead product candidate, exa-cel, is being developed in partnership with Vertex Pharmaceuticals. The U.K. Medicines and Healthcare products Regulatory Agency recently granted conditional marketing authorization to exa-cel for the treatment of sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT) under the brand name Casgevy.
The companies have completed the biologics license application submissions with the FDA for exa-cel in SCD and TDT indications, and a final decision is expected by Dec 8, 2023 and Mar 30, 2024, respectively. A potential approval will be a significant boost for CRSP.
CRSP has had a phenomenal run, with shares surging 66.2% year to date. Loss estimates for 2023 have narrowed by $1.22 in the past 30 days to $3.44 and by 93 cents to $5.51 for 2024. CRSP currently carries a Zacks Rank #2.
Price and Consensus: CRSP
Acadia is focused on developing innovative medicines to address unmet medical needs in central nervous system disorders. Lead drug Nuplazid (pimavanserin) is the first and the only FDA-approved treatment for hallucinations and delusions associated with Parkinson’s disease psychosis. Several additional studies on Nuplazid, targeting different types of neurological and psychiatric disorders, are presently ongoing. Sales of the drug have witnessed a steady increase and label expansions of the drug will boost uptake further. The approval of Daybue has diversified the portfolio and will reduce the burden on Nuplazid.
Loss estimates for 2023 have narrowed to 34 cents from 41 cents for 2023 while the earnings estimate for 2024 currently stands at 90 cents per share. The company currently has a Zacks Rank #2. ACADIA shares have gained 41% so far this year.
Price and Consensus: ACAD
Dynavax, a commercial-stage biopharmaceutical company, is developing and commercializing innovative vaccines against infectious diseases. It has two commercial products, HEPLISAV-B vaccine (Hepatitis B Vaccine [Recombinant], Adjuvanted), which is approved in the United States and the European Union for the prevention of infection caused by all known subtypes of hepatitis B virus in adults 18 years of age and older, and CpG 1018 adjuvant, currently used in multiple adjuvanted COVID-19 vaccines. HEPLISAV-B continued to maintain a strong market share and the company is also working to expand its label.
Dynavax is also advancing CpG 1018 adjuvant as a premier vaccine adjuvant with adjuvanted vaccine clinical programs for shingles and Tdap. The company has also formed global research collaborations and partnerships focused on adjuvanted vaccines for COVID-19, seasonal influenza, universal influenza and plague.
Price and Consensus: DVAX
Loss estimates for 2023 have narrowed to 12 cents from 23 cents for 2023 in the past 60 days, while the earnings estimate for 2024 currently stands at 18 cents per share. The company currently has a Zacks Rank #2. Shares of DVAX have gained 27.2% year to date.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biotech companies like Gilead Sciences, Inc. GILD, CRISPR Therapeutics AG CRSP, ACADIA Pharmaceuticals Inc. ACAD, Dynavax DVAX and Ligand Pharmaceuticals Incorporated LGND are poised to outperform the volatile sector. Price and Consensus: CRSP Acadia is focused on developing innovative medicines to address unmet medical needs in central nervous system disorders. ACADIA shares have gained 41% so far this year. | Biotech companies like Gilead Sciences, Inc. GILD, CRISPR Therapeutics AG CRSP, ACADIA Pharmaceuticals Inc. ACAD, Dynavax DVAX and Ligand Pharmaceuticals Incorporated LGND are poised to outperform the volatile sector. Click to get this free report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here. Price and Consensus: CRSP Acadia is focused on developing innovative medicines to address unmet medical needs in central nervous system disorders. | Click to get this free report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here. Biotech companies like Gilead Sciences, Inc. GILD, CRISPR Therapeutics AG CRSP, ACADIA Pharmaceuticals Inc. ACAD, Dynavax DVAX and Ligand Pharmaceuticals Incorporated LGND are poised to outperform the volatile sector. Price and Consensus: CRSP Acadia is focused on developing innovative medicines to address unmet medical needs in central nervous system disorders. | Biotech companies like Gilead Sciences, Inc. GILD, CRISPR Therapeutics AG CRSP, ACADIA Pharmaceuticals Inc. ACAD, Dynavax DVAX and Ligand Pharmaceuticals Incorporated LGND are poised to outperform the volatile sector. Price and Consensus: CRSP Acadia is focused on developing innovative medicines to address unmet medical needs in central nervous system disorders. ACADIA shares have gained 41% so far this year. |
35493.0 | 2023-11-22 00:00:00 UTC | Can-Fite (CANF) Up on Liver Cancer Study Update of Namodenoson | ACAD | https://www.nasdaq.com/articles/can-fite-canf-up-on-liver-cancer-study-update-of-namodenoson | nan | nan | Can-Fite BioPharma Ltd. CANF announced that the continued treatment of a patient, previously enrolled and treated with namodenoson in its phase II liver cancer study, observed a complete response and overall survival (OS) of 6.9 years (82.8 months).
The patient, at the time of enrollment in the phase II study, was suffering from advanced hepatocellular carcinoma (HCC). The patient continues to receive treatment with namodenoson, to date. Several observations were made in the condition of the patient, such as the disappearance of ascites, normal liver function and good quality of life, collectively defined as a complete response, along with the OS of 6.9 years.
Liver Cancer, designated as HCC, is caused by tumor growth on the liver with a high mortality rate. HCC is a major global health problem due to the lack of effective treatment modes, particularly for patients with advanced hepatic dysfunction known as disease stage Child Pugh B.
Can-Fite’s stock gained 6.7% on Tuesday as investors cheered the encouraging response observed in the liver cancer patient upon continued treatment with namodenoson. Year to date, shares of CANF have plunged 65.1% compared with the industry’s 12.6% decline.
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Namodenoson is the company’s small and orally bioavailable drug that binds with high affinity and selectivity to the A3 adenosine receptor.
Currently, Can-Fite is enrolling patients in its pivotal phase III study of namodenoson for the treatment of advanced HCC, following agreements with regulatory bodies in the United States and EU. The investigational candidate enjoys Orphan Drug status in the United States and EU. Furthermore, the FDA has also granted Fast Track status to namodenoson.
The pivotal phase III study of namodenoson is expected to enroll 450 HCC patients with underlying Child Pugh B7 (CPB7). The enrolled patients will be randomized to receive either an oral and twice-daily 25 mg dose of namodenoson or placebo.
The primary endpoint of the pivotal late-stage study of namodenoson in HCC is that of OS. Other efficacy outcomes, such as tumor radiographic response rates and median progression-free survival, as well as standard safety parameters, will also be assessed.
After treating 50% of enrolled patients in the pivotal study with namodenoson, an independent committee will conduct an interim analysis. The candidate will be evaluated as a second or third-line treatment for CPB7 patients who have not benefitted from other approved therapies.
Can-Fite believes that namodenoson has the potential to get conditional approval, subject to positive results from the interim analysis of the phase III HCC study.
Besides the HCC indication, Can-Fite has also evaluated namodenoson in another phase II study for the treatment of non-alcoholic fatty liver disease and non-alcoholic steatohepatitis.
Can-Fite Biopharma Ltd Price and Consensus
Can-Fite Biopharma Ltd price-consensus-chart | Can-Fite Biopharma Ltd Quote
Zacks Rank and Other Stocks to Consider
Can-Fite currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 each at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Ligand’s 2023 earnings per share has remained constant at $5.10. During the same time frame, the estimate for Ligand’s 2024 earnings per share has remained constant at $4.59. Year to date, shares of LGND have lost 12.5%.
LGND’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 67.19%.
In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 34 cents. The estimate for Acadia’s 2024 earnings per share is pegged at 90 cents. Year to date, shares of ACAD have shot up 41%.
ACAD beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average earnings surprise of 20.69%.
In the past 30 days, the Zacks Consensus Estimate for Agenus’ 2023 loss per share has narrowed from 77 cents to 63 cents. During the same time frame, the estimate for Agenus’ 2024 loss per share has narrowed from 70 cents to 45 cents. Year to date, shares of AGEN have declined 71.6%.
AGEN beat estimates in one of the trailing four quarters, matching in one and missing the mark on the other two occasions, delivering an average earnings surprise of 0.49%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 each at present. In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 34 cents. | Click to get this free report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report Agenus Inc. (AGEN) : Free Stock Analysis Report Can-Fite Biopharma Ltd (CANF) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 each at present. | Click to get this free report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report Agenus Inc. (AGEN) : Free Stock Analysis Report Can-Fite Biopharma Ltd (CANF) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 each at present. | Some other top-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 each at present. In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 34 cents. |
35494.0 | 2023-11-21 00:00:00 UTC | J&J (JNJ) Seeks Expanded Use of Lung Cancer Drug Rybrevant | ACAD | https://www.nasdaq.com/articles/jj-jnj-seeks-expanded-use-of-lung-cancer-drug-rybrevant | nan | nan | Johnson & Johnson JNJ announced that it submitted a supplemental biologics license application (sBLA) seeking approval for the expanded use of its cancer drug, Rybrevant (amivantamab-vmjw).
The sBLA seeks Rybrevant's approval in combination with chemotherapy (carboplatin and pemetrexed) for the treatment of patients with EGFR-mutated locally advanced or metastatic non-small cell lung cancer (NSCLC) for patients whose disease has progressed on or after treatment with AstraZeneca’s Tagrisso (osimertinib).
The sBLA was based on data from the phase III MARIPOSA-2 study, which evaluated the safety and efficacy of Rybrevant plus chemotherapy in the given patient population.
Currently, Rybrevant is approved in the United States for patients with locally advanced or metastatic NSCLC with EGFR exon 20 insertion mutations whose disease progressed on or after platinum-based chemotherapy in the United States. The European Medicines Agency had also granted conditional marketing authorization to Rybrevant for the same indication.
Shares of J&J have plunged 15.1% so far this year against the industry’s growth of 3.8%.
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In October 2023, the company presented data from the phase III MARIPOSA-2 study at the European Society for Medical Oncology 2023 Congress.
Data from the same showed that treatment with Rybrevant plus chemotherapy led to a significant improvement in progression-free survival (the primary endpoint) as compared with chemotherapy alone in patients with EGFR-mutated advanced NSCLC following prior osimertinib therapy.
We remind investors that another sBLA is seeking approval for Rybrevant in combination with chemotherapy (carboplatin and pemetrexed) for the first-line treatment of patients with advanced NSCLC with EGFR exon 20 insertion mutations.
Several other early to mid-stage studies are currently underway, evaluating Rybrevant in NSCLC.
Zacks Rank & Stocks to Consider
J&J currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector are Novo Nordisk A/S NVO, AbbVie Inc. ABBV and Acadia Pharmaceuticals Inc. ACAD, carrying a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for Novo Nordisk’s 2023 earnings per share have improved from $2.15 to $2.62. During the same period, earnings estimates for 2024 have moved up from $2.46 to $3.07. Year to date, shares of NVO have rallied 52.9%.
Earnings of Novo Nordisk beat estimates in two of the trailing four quarters, met the same once and missed on the other occasion. On average, NVO came up with a four-quarter earnings surprise of 0.58%.
In the past 60 days, estimates for AbbVie’s 2023 earnings per share have improved from $11 to $11.19. During the same period, earnings estimates for 2024 have moved up from $11.05 to $11.14. Year to date, shares of ABBV have lost 14.3%.
Earnings of AbbVie beat estimates in each of the trailing four quarters. On average, ABBV came up with a four-quarter earnings surprise of 2.49%.
In the past 60 days, estimates for Acadia Pharmaceuticals’ 2023 loss per share have narrowed from 41 cents to 34 cents. During the same period, earnings per share estimates for 2024 have moved up from 52 cents to 90 cents. Year to date, shares of ACAD have surged 44%.
Earnings of Acadia Pharmaceuticals beat estimates in two of the trailing four quarters and missed on the other two occasions. On average, ACAD came up with a four-quarter earnings surprise of 20.69%.
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Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the healthcare sector are Novo Nordisk A/S NVO, AbbVie Inc. ABBV and Acadia Pharmaceuticals Inc. ACAD, carrying a Zacks Rank #2 (Buy) each at present. In the past 60 days, estimates for Acadia Pharmaceuticals’ 2023 loss per share have narrowed from 41 cents to 34 cents. Year to date, shares of ACAD have surged 44%. | Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the healthcare sector are Novo Nordisk A/S NVO, AbbVie Inc. ABBV and Acadia Pharmaceuticals Inc. ACAD, carrying a Zacks Rank #2 (Buy) each at present. In the past 60 days, estimates for Acadia Pharmaceuticals’ 2023 loss per share have narrowed from 41 cents to 34 cents. | Some better-ranked stocks in the healthcare sector are Novo Nordisk A/S NVO, AbbVie Inc. ABBV and Acadia Pharmaceuticals Inc. ACAD, carrying a Zacks Rank #2 (Buy) each at present. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. In the past 60 days, estimates for Acadia Pharmaceuticals’ 2023 loss per share have narrowed from 41 cents to 34 cents. | Some better-ranked stocks in the healthcare sector are Novo Nordisk A/S NVO, AbbVie Inc. ABBV and Acadia Pharmaceuticals Inc. ACAD, carrying a Zacks Rank #2 (Buy) each at present. In the past 60 days, estimates for Acadia Pharmaceuticals’ 2023 loss per share have narrowed from 41 cents to 34 cents. Year to date, shares of ACAD have surged 44%. |
35495.0 | 2023-11-21 00:00:00 UTC | Agios (AGIO) Meets Clinical Proof-of-Concept in Anemia Treatment | ACAD | https://www.nasdaq.com/articles/agios-agio-meets-clinical-proof-of-concept-in-anemia-treatment | nan | nan | Agios Pharmaceuticals AGIO achieved clinical proof-of-concept in the phase IIa portion of a study evaluating its investigational next-generation pyruvate kinase (PK) activator AG-946 to treat anemia in adults with lower-risk myelodysplastic syndromes (MDS).
A total of 22 patients were enrolled in this phase IIa portion and classified into two cohorts — 12 classified as non-transfused (NTD) and 10 classified as low transfusion burden (LTB). The primary endpoints of the study were transfusion dependence (applicable only for the LTB cohort) and hemoglobin response.
Data from the phase IIa portion of the study revealed that 40% of patients in the LTB cohort achieved the transfusion independence endpoint. In contrast, one of the 22 patients treated in the study achieved the hemoglobin response endpoint in the 16-week treatment (core) period.
Per Agios, these results highlight the potential of AG-946 by improving red blood cell (RBC) health through its unique mechanism of action. A significant reduction in transfusions allows patients to potentially lower visits to the clinic, thereby improving their quality of life.
The safety profile of the drug was also consistent with the data reported in a previously conducted study on healthy volunteers. Management plans to present more data from the phase IIa portion at a medical meeting next year.
Based on these results, management plans to start the placebo-controlled phase IIb portion of the study in mid-2024, evaluating AG-946 in lower-risk MDS.
Year to date, shares of Agios have lost 23.4% compared with the industry’s 8.6% fall.
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AG-946 is the company’s second PK activator being evaluated for clinical studies. Last year, Agios received FDA approval for Pyrukynd (mitapivat), a first-in-class PK activator for treating hemolytic anemia in adults with PK deficiency. Currently, Agios’ sole marketed drug, Pyrukynd, is also being developed for other hemolytic anemias, including sickle cell disease and thalassemia, in several label expansion studies.
If successfully developed and commercialized, AG-946 is likely to face stiff competition from Bristol Myers’ BMY Reblozyl (luspatercept). The Bristol Myers drug recently received label expansion in the United States as the first-line treatment of anemia in adults with lower-risk MDS who may require transfusions.
Bristol Myers’ Reblozyl was already approved by the FDA to treat anemia in adult patients with beta-thalassemia who require regular RBC transfusions. It is also approved for the treatment of anemia failing an erythropoiesis-stimulating agent and requiring two or more RBC units over eight weeks in adult patients with very-low-to-intermediate-risk MDS with ring sideroblasts (MDS-RS) or with myelodysplastic/myeloproliferative neoplasm with ring sideroblasts and thrombocytosis.
Agios Pharmaceuticals, Inc. Price
Agios Pharmaceuticals, Inc. price | Agios Pharmaceuticals, Inc. Quote
Zacks Rank & Stocks to Consider
Agios currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD and AnaptysBio ANAB, all carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. During the same period, the estimates for 2024 earnings per share have risen from 52 cents to 90 cents. Year to date, Acadia Pharmaceuticals’ shares have gained 44.0%.
Acadia Pharmaceuticals beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 20.69% on average. In the last reported quarter, ACAD reported an earnings surprise of 6.98%.
AnaptysBio’s loss estimate has narrowed from $6.57 to $6.08 per share in the past 60 days. During the same period, the loss estimates per share for 2024 have narrowed from $6.93 to $6.38. Shares of ANAB have lost 53.2% in the year-to-date period.
The earnings of AnaptysBio beat estimates in two of the last four quarters while missing the mark on the other two occasions, posting a negative average earnings surprise of 6.48%. AnaptysBio’s earnings beat estimates by 18.02%.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Agios Pharmaceuticals, Inc. Price Agios Pharmaceuticals, Inc. price | Agios Pharmaceuticals, Inc. Quote Zacks Rank & Stocks to Consider Agios currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 44.0%. | Agios Pharmaceuticals, Inc. Price Agios Pharmaceuticals, Inc. price | Agios Pharmaceuticals, Inc. Quote Zacks Rank & Stocks to Consider Agios currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD and AnaptysBio ANAB, all carrying a Zacks Rank #2. Click to get this free report Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report Agios Pharmaceuticals, Inc. (AGIO) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report AnaptysBio, Inc. (ANAB) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. | Agios Pharmaceuticals, Inc. Price Agios Pharmaceuticals, Inc. price | Agios Pharmaceuticals, Inc. Quote Zacks Rank & Stocks to Consider Agios currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD and AnaptysBio ANAB, all carrying a Zacks Rank #2. Click to get this free report Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report Agios Pharmaceuticals, Inc. (AGIO) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report AnaptysBio, Inc. (ANAB) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. | Agios Pharmaceuticals, Inc. Price Agios Pharmaceuticals, Inc. price | Agios Pharmaceuticals, Inc. Quote Zacks Rank & Stocks to Consider Agios currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 44.0%. |
35496.0 | 2023-11-21 00:00:00 UTC | Anavex (AVXL) Up 12% on Regulatory Update for Alzheimer's Drug | ACAD | https://www.nasdaq.com/articles/anavex-avxl-up-12-on-regulatory-update-for-alzheimers-drug | nan | nan | Anavex Life Sciences AVXL announced that it has initiated a regulatory submission of investigational oral blarcamesine (Anavex 2-73) for the treatment of Alzheimer’s Disease to the European Medicines Agency (EMA).
The marketing authorization application, subject to approval, will grant the company direct access to the European Union (EU) market for oral blarcamesine in the treatment of Alzheimer’s disease.
The company recently met with the EMA to discuss the debilitating pathology of Alzheimer’s disease as well as results obtained from its clinical program of blarcamesine in the same indication. The discussion included data obtained in the mid-late-stage ANAVEX 2-73-AD-004 study of blarcamesine in Alzheimer’s disease.
The stock of the company gained 11.6% on Monday, in response to the encouraging regulatory update. Year to date, shares of Anavex have lost 24.4% compared with the industry’s 23.1% decline.
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Anavex’s orally administered blarcamesine is an easier-to-use formulation than the currently available Alzheimer’s disease treatments. An oral treatment option for the same does not require complex logistics resources and added personnel for drug administration and monitoring for brain edema and brain bleeds.
Per AVXL, Alzheimer’s patients, taking the class of drugs called monoclonal antibodies, sometimes suffer from amyloid-related imaging abnormalities (ARIA). Notably, ARIA is a common side effect in this course of treatment and requires constant and repeated magnetic resonance imaging examination, which is challenging due to the scarcity of such equipment in certain regions of the EU. In addition, there are issues regarding affordability and inequalities in patient access within EU countries.
However, when Alzheimer’s patients were treated with blarcamesine in the phase IIb/III study, the candidate demonstrated a reduction of pathological aggregation of amyloid in early Alzheimer’s disease as well as a reduction of brain volume loss, a well-known marker of neurodegeneration. In the study, a statistically significant improvement in dementia symptoms was also observed upon treatment with blarcamesine.
Per the European Brain Council, there are approximately seven million people in Europe with Alzheimer’s disease, which is expected to double by 2030.
Anavex is also evaluating blarcamesine in several other central nervous system (CNS) indications. For instance, blarcamesine has successfully completed a phase IIa and phase IIb/III clinical study for Alzheimer's disease, phase II proof-of-concept study in Parkinson's disease dementia, and both phase II and phase III study in adult patients with Rett syndrome.
AVXL’s clinical-stage pipeline consists of another candidate, Anavex 3-71 (AF710B), which is currently in late-stage development to treat several CNS disorders, including Alzheimer’s disease.
Anavex Life Sciences Corp. Price and Consensus
Anavex Life Sciences Corp. price-consensus-chart | Anavex Life Sciences Corp. Quote
Zacks Rank and Stocks to Consider
Anavex currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 (Buy) each at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Ligand’s 2023 earnings per share has remained constant at $5.10. During the same time frame, the estimate for Ligand’s 2024 earnings per share has remained constant at $4.59. Year to date, shares of LGND have lost 13%.
LGND’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 67.19%.
In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 34 cents. The estimate for Acadia’s 2024 earnings per share is pegged at 90 cents. Year to date, shares of ACAD have shot up 44%.
ACAD beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average earnings surprise of 20.69%.
In the past 30 days, the Zacks Consensus Estimate for Agenus’ 2023 loss per share has narrowed from 77 cents to 63 cents. During the same time frame, the estimate for Agenus’ 2024 loss per share has narrowed from 70 cents to 45 cents. Year to date, shares of AGEN have declined 69.1%.
AGEN beat estimates in one of the trailing four quarters, matching in one and missing the mark on the other two occasions, delivering an average earnings surprise of 0.49%.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 (Buy) each at present. In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 34 cents. | Click to get this free report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report Agenus Inc. (AGEN) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Anavex Life Sciences Corp. (AVXL) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 (Buy) each at present. | Click to get this free report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report Agenus Inc. (AGEN) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Anavex Life Sciences Corp. (AVXL) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 (Buy) each at present. | Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 (Buy) each at present. In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 34 cents. |
35497.0 | 2023-11-20 00:00:00 UTC | Wall Street Analysts Predict a 37.65% Upside in Acadia (ACAD): Here's What You Should Know | ACAD | https://www.nasdaq.com/articles/wall-street-analysts-predict-a-37.65-upside-in-acadia-acad%3A-heres-what-you-should-know | nan | nan | Acadia Pharmaceuticals (ACAD) closed the last trading session at $22.84, gaining 3.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $31.44 indicates a 37.7% upside potential.
The mean estimate comprises 16 short-term price targets with a standard deviation of $7.40. While the lowest estimate of $13 indicates a 43.1% decline from the current price level, the most optimistic analyst expects the stock to surge 83.9% to reach $42. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for ACAD, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Here's What You Should Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why ACAD Could Witness a Solid Upside
There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 8.4%, as seven estimates have moved higher while three have gone lower.
Moreover, ACAD currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much ACAD could gain, the direction of price movement it implies does appear to be a good guide.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Acadia Pharmaceuticals (ACAD) closed the last trading session at $22.84, gaining 3.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. But, for ACAD, an impressive average price target is not the only indicator of a potential upside. Why ACAD Could Witness a Solid Upside There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. | Click to get this free report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals (ACAD) closed the last trading session at $22.84, gaining 3.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. But, for ACAD, an impressive average price target is not the only indicator of a potential upside. | You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much ACAD could gain, the direction of price movement it implies does appear to be a good guide. Acadia Pharmaceuticals (ACAD) closed the last trading session at $22.84, gaining 3.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. But, for ACAD, an impressive average price target is not the only indicator of a potential upside. | Acadia Pharmaceuticals (ACAD) closed the last trading session at $22.84, gaining 3.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. But, for ACAD, an impressive average price target is not the only indicator of a potential upside. Why ACAD Could Witness a Solid Upside There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. |
35498.0 | 2023-11-20 00:00:00 UTC | Repare Therapeutics (RPTX) Rises 34% in a Week: Here's Why | ACAD | https://www.nasdaq.com/articles/repare-therapeutics-rptx-rises-34-in-a-week%3A-heres-why | nan | nan | Repare Therapeutics Inc. RPTX is using its genome-wide, CRISPR-enabled SNIPRx platform to discover and develop highly targeted cancer therapies that cater to genomic instability, including DNA damage repair.
The company currently has two candidates in its clinical pipeline, camonsertib, an ATR inhibitor and lunresertib, a PKMYT1 Inhibitor. These two candidates are currently undergoing early-mid-stage development in various cancer indications.
Last week, Repare announced that two additional candidates, RP-1664 and RP-3467, are likely to enter early-stage clinical development in 2024. Following the news, shares of the company have surged 34.2% in the past week compared with the industry’s 1.7% rise.
Image Source: Zacks Investment Research
RP-1664 is the company’s investigational oral PLK4 inhibitor, which is being developed as a potential treatment for various solid tumor indications. Per the company, RP-1664 has demonstrated robust and dose-dependent monotherapy efficacy across a variety of tumor types, including breast cancer, non-small cell lung cancer and neuroblastoma, in pre-clinical studies.
RPTX anticipates initiating a phase I dose-escalation study of RP-1664 in adult and adolescent patients with TRIM37-high solid tumors in the first half of 2024.
RP-3467, on the other hand, is Repare’s investigational Polθ inhibitor. RP-3467’s mechanism of action holds similarity with PARP inhibitor activity, whereby, the former has shown durable and complete tumor regressions in multiple preclinical studies when administered as a monotherapy.
Pre-clinical study data has also demonstrated RP-3467’s potential to be developed in combination with radioligand therapy, antibody-drug conjugates and multiple chemotherapies.
Repare expects to begin a phase I dose-finding study of RP-3467 in the second half of 2024.
The RP-1664 and RP-3467 programs represent the company’s third and fourth internally developed clinical candidates after camonsertib and lunresertib.
Repare Therapeutics Inc. Price and Consensus
Repare Therapeutics Inc. price-consensus-chart | Repare Therapeutics Inc. Quote
Zacks Rank and Stocks to Consider
Repare currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 (Buy) each at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Ligand’s 2023 earnings per share has remained constant at $5.10. During the same time frame, the estimate for Ligand’s 2024 earnings per share has remained constant at $4.59. In the past week, shares of LGND have gained 4.8%.
LGND’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 67.19%.
In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 34 cents. The estimate for Acadia’s 2024 earnings per share is pegged at 90 cents. In the past week, shares of ACAD have inched up 1.9%.
ACAD beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average earnings surprise of 20.69%.
In the past 30 days, the Zacks Consensus Estimate for Agenus’ 2023 loss per share has narrowed from 77 cents to 63 cents. During the same time frame, the estimate for Agenus’ 2024 loss per share has narrowed from 70 cents to 45 cents. In the past week, shares of AGEN have gained 9.9%.
AGEN beat estimates in one of the trailing four quarters, matching in one and missing the mark on the other two occasions, delivering an average earnings surprise of 0.49%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report
Agenus Inc. (AGEN) : Free Stock Analysis Report
ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report
Repare Therapeutics Inc. (RPTX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 (Buy) each at present. In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 34 cents. | Click to get this free report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report Agenus Inc. (AGEN) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Repare Therapeutics Inc. (RPTX) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 (Buy) each at present. | In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 34 cents. Click to get this free report Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report Agenus Inc. (AGEN) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Repare Therapeutics Inc. (RPTX) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. | Some better-ranked stocks worth mentioning are Ligand Pharmaceuticals LGND, Acadia Pharmaceuticals ACAD and Agenus AGEN. While LGND sports a Zacks Rank #1 (Strong Buy), ACAD and AGEN carry a Zacks Rank #2 (Buy) each at present. In the past 30 days, the Zacks Consensus Estimate for Acadia’s 2023 loss per share has narrowed from 37 cents to 34 cents. |
35499.0 | 2023-11-17 00:00:00 UTC | Merck (MRK) Gets FDA Nod for Keytruda Expansion in Gastric Cancer | ACAD | https://www.nasdaq.com/articles/merck-mrk-gets-fda-nod-for-keytruda-expansion-in-gastric-cancer | nan | nan | Merck MRK announced that the FDA approved its blockbuster drug Keytruda for a second indication in gastric cancer.
The FDA has approved Keytruda, combined with fluoropyrimidine- and platinum-containing chemotherapy, for first-line treatment of adult patients with locally advanced unresectable or metastatic HER2-negative gastric or gastroesophageal junction (“GEJ”) adenocarcinoma.
The approval is based on data from the phase III KEYNOTE-859 study, wherein patients treated with the Keytruda combination demonstrated a statistically significant improvement in overall survival compared with patients who received chemotherapy only.
Last month, the European Medicines Agency's (“EMA”) Committee for Medicinal Products for Human Use (CHMP) issued a positive opinion recommending label expansion to Keytruda for a similar indication, supported by data from the KEYNOTE-859 study. A final decision is expected before year-end.
Keytruda, combined with trastuzumab and chemotherapy, was granted accelerated approval by the FDA in 2021 for the first-line treatment of locally advanced unresectable or metastatic HER2-positive gastric or GEJ adenocarcinoma in patients whose tumors express PD-L1. In August, this combination received approval for a similar indication in the European Union.
Following this approval, a combination therapy involving Keytruda will be available to patients with HER2-negative and HER2-positive advanced gastric or GEJ adenocarcinoma. The approval marks the seventh indication for Keytruda in gastrointestinal cancers and the overall 38th indication for the drug in the country.
Merck’s shares have lost 8.1% year to date against the industry’s 2.3% growth.
Image Source: Zacks Investment Research
An anti-PD-1 therapy, Keytruda is Merck’s blockbuster oncology drug approved for several types of cancer, contributing around 46% of MRK’s total revenues in the first nine months of 2023. Keytruda is authorized to treat eight indications in earlier-stage cancers in the United States. Merck’s Keytruda continuously grows and expands into new indications and markets globally.
Keytruda, the key revenue generator for Merck, is already approved for treating many cancers globally. In the nine months ended September 2023, Merck recorded $18.4 billion in sales from Keytruda, up 19% year over year. Drug sales are gaining from continued strong momentum in metastatic indications and rapid uptake across recent earlier-stage launches. Keytruda is consistently growing and expanding into new indications and markets globally.
Merck is evaluating Keytruda across many indications that are progressing well. Keytruda is being studied for more than 30 types of cancer indications in more than 1600 studies, including combination studies. If approved, label expansions for new cancer indications can further boost sales.
Merck & Co., Inc. Price
Merck & Co., Inc. price | Merck & Co., Inc. Quote
Zacks Rank & Stocks to Consider
Merck currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. During the same period, the estimates for 2024 earnings per share have risen from 52 cents to 90 cents. Year to date, Acadia Pharmaceuticals’ shares have gained 38.6%.
Acadia Pharmaceuticals beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 20.69% on average. In the last reported quarter, ACAD reported an earnings surprise of 6.98%.
In the past 60 days, estimates for Allogene Therapeutics’ 2023 loss per share have narrowed from $2.25 to $2.13. During the same period, the estimates for 2024 loss per share have improved from $2.22 to $2.05. Shares of ALLO are down 55.3% in the year-to-date period.
Earnings of Allogene Therapeutics beat estimates in three of the last four quarters while meeting the mark on one occasion, witnessing an average earnings surprise of 9.87%. In the last reported quarter, Allogene’s earnings beat estimates by 30.19%.
AnaptysBio’s loss estimate has narrowed from $6.57 to $6.21 per share in the past 60 days. During the same period, the loss estimates per share for 2024 have narrowed from $6.93 to $6.24. Shares of ANAB have lost 54.0% in the year-to-date period.
The earnings of AnaptysBio beat estimates in two of the last four quarters while missing the mark on the other two occasions, posting a negative average earnings surprise of 6.48%. AnaptysBio’s earnings beat estimates by 18.02%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report
AnaptysBio, Inc. (ANAB) : Free Stock Analysis Report
Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 38.6%. | Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2. Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report AnaptysBio, Inc. (ANAB) : Free Stock Analysis Report Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. | Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report AnaptysBio, Inc. (ANAB) : Free Stock Analysis Report Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. | Some better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals ACAD, Allogene Therapeutics ALLO and AnaptysBio ANAB, all carrying a Zacks Rank #2. Acadia Pharmaceuticals’ loss estimates for 2023 have narrowed from 41 cents to 34 cents per share in the past 60 days. Year to date, Acadia Pharmaceuticals’ shares have gained 38.6%. |
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