Argan Stock Surges After Beating Earnings Estimates
Argan (NYSE: AGX) saw its stock rise by over 3% after reporting second-quarter results that significantly exceeded Wall Street expectations. The engineering and construction company reported earnings of $3.76 per share on revenue of $384 million, compared to forecasts for $2.66 per share and $299.4 million in sales. Argan's year-over-year revenue growth reached 61.5%, driven by strong performance across its segments. The power segment alone saw a 53% increase in sales, while the industrial and teledata divisions likely contributed even more to overall growth. However, higher tax rates limited earnings per share growth to just 50%. Management did not provide specific guidance for the remainder of the year but highlighted ongoing momentum across its businesses. Analysts now expect Argan to finish the year with nearly $1.3 billion in sales and $12.09 per share in profit, though the stock is currently trading at a high multiple relative to earnings.
Tickers: $AGX