Argan Reports Strong Q2 Earnings, Driving Stock Higher
Argan (NYSE: AGX) stock rose nearly 3.3% on September 3 after the engineering and construction company reported second-quarter earnings that significantly exceeded analyst expectations. Argan earned $3.76 per share with revenue of $384 million compared to forecasts for $2.66 per share and $299.4 million in sales. The firm's overall revenue grew by 61.5% year over year, driven largely by a strong performance across its business segments. The power segment saw a 53% increase in sales, while the industrial and teledata divisions likely contributed even more to the impressive growth figures. Despite improved operating margins, higher tax rates limited overall earnings per share growth to just 50%. Management did not provide specific guidance for the remainder of the year but expressed confidence based on ongoing performance across its operations. Analysts expect Argan's sales could reach nearly $1.3 billion this year with a profit of around $12.09 per share, though the stock is currently trading at over 35 times earnings. The Motley Fool analysts did not include Argan in their latest list of top stocks for long-term growth.
