What Happened?

Shares of civil infrastructure company Construction Partners (NASDAQ:ROAD) jumped 8% in the pre-market session after the company reported strong fourth-quarter results, which blew past analysts' sales and EPS expectations. In addition, its EBITDA outperformed Wall Street's estimates by a wide margin. Guidance was also encouraging, with the company lifting full-year revenue guidance. The growth outlook was informed by strong industry tailwinds in some of the company's operating regions. The company is also benefiting from tuck-in acquisitions which drove the larger portion of the 42% y/y growth during the quarter. Zooming out, we think this quarter featured some important positives.

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What The Market Is Telling Us

Construction Partners’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Construction Partners is up 2.1% since the beginning of the year, but at $89.65 per share, it is still trading 12% below its 52-week high of $101.86 from December 2024. Investors who bought $1,000 worth of Construction Partners’s shares 5 years ago would now be looking at an investment worth $5,674.

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