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L.B. Foster (FSTR) Shares Up 31% in 3 Months: Here's Why
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L.B. Foster Company (FSTR - Free Report) shares have rallied 30.9% in the past three months. The upside can be attributed to the stock outperforming its industry’s fall of 5.2% over the same time frame. The company also topped the S&P 500’s nearly 1.8% drop over the same period.
Image Source: Zacks Investment Research
Let’s examine the factors driving this Zacks Rank #2 (Buy) stock.
What’s Going in L.B. Foster’s Favor?
FSTR's performance in the second quarter exceeded expectations on multiple fronts. Its earnings per share surged to 32 cents, a significant increase from the previous year's 18 cents, surpassing the Zacks Consensus Estimate of 28 cents. The company also reported strong revenue growth, with a year-over-year increase of 12.5% to $148 million, which exceeded the consensus estimate of $140.7 million.
New orders for the quarter were notably impressive, reaching $183.7 million and increasing 30% year over year. The upside was driven by higher demand, increased pricing, a favorable product mix and ongoing transformation initiatives. FSTR revised its 2023 financial outlook, now projecting adjusted EBITDA to range from $28 million to $32 million, up from the initial guidance of $27-$31 million.
In the Rail, Technologies, and Services segment, sales witnessed a 12% year-over-year increase, reaching $91.6 million in the second quarter. The Precast Concrete Products Segment reported sales of $33.9 million, indicating a remarkable 43.4% year-over-year increase. This growth was driven by 12.8% organic growth and a 30.6% contribution from the acquisition of VanHooseCo Precast, LLC.
The Zacks Consensus Estimate for full-year 2023 earnings is pegged at 53 cents per share, indicating a year-over-year growth of 112.5%. In 2024, earnings are projected to see an impressive 117% growth. It's worth noting that FSTR has demonstrated a consistent track record of exceeding the Zacks Consensus Estimate in each of the past four quarters, boasting an impressive trailing four-quarter average earnings surprise of 134.5%.
In the past 60 days, the Zacks Consensus Estimate for Westrock’s current fiscal year has been revised upward by 5.2%. WRK beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have rallied 19.6% in the past year.
The consensus estimate for Air Products’ current fiscal year earnings is pegged at $11.47, indicating year-over-year growth of 10.2%. APD beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 1.8%. The company’s shares have surged 26.8% in the past year.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 58.9% in a year.
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L.B. Foster (FSTR) Shares Up 31% in 3 Months: Here's Why
L.B. Foster Company (FSTR - Free Report) shares have rallied 30.9% in the past three months. The upside can be attributed to the stock outperforming its industry’s fall of 5.2% over the same time frame. The company also topped the S&P 500’s nearly 1.8% drop over the same period.
Image Source: Zacks Investment Research
Let’s examine the factors driving this Zacks Rank #2 (Buy) stock.
What’s Going in L.B. Foster’s Favor?
FSTR's performance in the second quarter exceeded expectations on multiple fronts. Its earnings per share surged to 32 cents, a significant increase from the previous year's 18 cents, surpassing the Zacks Consensus Estimate of 28 cents. The company also reported strong revenue growth, with a year-over-year increase of 12.5% to $148 million, which exceeded the consensus estimate of $140.7 million.
New orders for the quarter were notably impressive, reaching $183.7 million and increasing 30% year over year. The upside was driven by higher demand, increased pricing, a favorable product mix and ongoing transformation initiatives. FSTR revised its 2023 financial outlook, now projecting adjusted EBITDA to range from $28 million to $32 million, up from the initial guidance of $27-$31 million.
In the Rail, Technologies, and Services segment, sales witnessed a 12% year-over-year increase, reaching $91.6 million in the second quarter. The Precast Concrete Products Segment reported sales of $33.9 million, indicating a remarkable 43.4% year-over-year increase. This growth was driven by 12.8% organic growth and a 30.6% contribution from the acquisition of VanHooseCo Precast, LLC.
The Zacks Consensus Estimate for full-year 2023 earnings is pegged at 53 cents per share, indicating a year-over-year growth of 112.5%. In 2024, earnings are projected to see an impressive 117% growth. It's worth noting that FSTR has demonstrated a consistent track record of exceeding the Zacks Consensus Estimate in each of the past four quarters, boasting an impressive trailing four-quarter average earnings surprise of 134.5%.
L.B. Foster Company Price and Consensus
L.B. Foster Company price-consensus-chart | L.B. Foster Company Quote
Zacks Rank & Other Key Picks
Some other top-ranked stocks in the Basic Materials space are WestRock Company (WRK - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Air Products and Chemicals, Inc. (APD - Free Report) and The Andersons Inc. (ANDE - Free Report) , both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Westrock’s current fiscal year has been revised upward by 5.2%. WRK beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have rallied 19.6% in the past year.
The consensus estimate for Air Products’ current fiscal year earnings is pegged at $11.47, indicating year-over-year growth of 10.2%. APD beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 1.8%. The company’s shares have surged 26.8% in the past year.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 58.9% in a year.