Here's What Investors Must Know Ahead of Argan's Q2 Earnings Release

Argan, Inc. AGX is scheduled to report its second-quarter fiscal 2027 results on Sept. 2, after market close.

In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 42.7% and 15.2%, respectively. Year over year, both metrics grew 102.5% and 50.2%, respectively.

How are Estimates Placed for AGX Stock?

The Zacks Consensus Estimate for fiscal second-quarter earnings per share (EPS) has remained unchanged at $2.68 over the past 60 days. The estimate indicates a 7.2% year-over-year improvement.

The consensus estimate for revenues is pegged at $297.8 million, indicating a 25.3% year-over-year rise from $237.7 million.

Argan, Inc. Price and EPS Surprise

Argan, Inc. price-eps-surprise | Argan, Inc. Quote

Factors Likely to Have Shaped Argan’s Q2 Performance

Revenues

Argan’s top-line performance in the fiscal second quarter is expected to have benefited from rising demand for data centers, EV adoption, water treatment and other industrial projects. The growing public infrastructure funding within and outside the United States borders, alongside the rapid evolution from natural gas-fired and coal plants, is likely to have been boosting the demand for AGX’s capabilities in similar fields.

This growth cycle is likely visible in the increased contributions from AGX’s three reportable segments, Power Services (contributing 77.9% of first-quarter fiscal 2027 revenues), Industrial Services (20%) and Telecom Services (2.1%).

However, the timing of work performed and project mix in a few recently received awards are expected to have pulled back the prospects to some extent. Nonetheless, a growing backlog in key end markets and execution capabilities of Argan are expected to have minimized the blow in the fiscal second quarter.

Earnings

Regarding the bottom line, during the fiscal second quarter, the metric is expected to have gained year over year on the back of increased leverage from revenue growth, strong execution and its efforts in ensuring project timing and delivery alignment.

Although increases in certain project costs and selling, general and administrative expenses, alongside ongoing global geopolitical uncertainty, have been concerning, favorable market demand trends are likely to have offset these adversities.

What the Zacks Model Says for Argan

Our proven model does not conclusively predict an earnings beat for Argan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.

AGX’s Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

AGX’s Zacks Rank: The stock currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Picks

Here are some better-ranked stocks from the Construction sector to consider.

Comfort Systems USA, Inc. FIX currently sports a Zacks Rank of 1. Comfort Systems delivered a trailing four-quarter earnings surprise of 34.6%, on average. The stock has climbed 7.5% in the past six months.

The Zacks Consensus Estimate for Comfort Systems’ 2026 sales and EPS indicates growth of 38.3% and 58.8%, respectively, from a year ago.

Quanta Services, Inc. PWR presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 17%, on average. Quanta shares have inched up 6% in the past six months.

The consensus estimate for Quanta’s 2026 sales and EPS indicates growth of 38.4% and 52.3%, respectively, from the prior-year levels.

Tutor Perini Corporation TPC currently sports a Zacks Rank of 1. Tutor Perini delivered a trailing four-quarter earnings surprise of 17.8%, on average. The stock has gained 20.3% in the past six months.

The Zacks Consensus Estimate for Tutor Perini’s 2026 sales and EPS implies an increase of 14% and 27.7%, respectively, from a year ago.

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This article originally published on Zacks Investment Research (zacks.com).

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