What Happened?
Shares of concrete and waste management company Concrete Pumping (NASDAQ: BBCP) fell 3.7% in the afternoon session after investors reacted to conflicting analyst reports, with a lowered earnings forecast seemingly outweighing a price target increase from another firm.
Investment analysts at William Blair reduced their fiscal year 2025 earnings per share (EPS) forecast for Concrete Pumping to $0.07, down from their prior estimate of $0.09. This suggests a more cautious outlook on the company's future profitability.
On the other hand, DA Davidson maintained a "Buy" rating and raised its price target on the shares to $8.50 from $8.00. The firm noted that the company's recent third-quarter results were largely aligned with expectations, even with a 9% year-over-year decline in revenue. Despite the positive view from DA Davidson, the market appears to be focusing more on the reduced earnings outlook from William Blair, leading to the decline in the company's shares.
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What Is The Market Telling Us
Concrete Pumping’s shares are very volatile and have had 24 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.
The previous big move we wrote about was 3 days ago when the stock gained 10.1% on the news that the company reported mixed second-quarter 2025 results but provided strong full-year guidance.
For the quarter, the company posted revenue of $103.7 million, beating the consensus estimate of $100.3 million, even though sales declined by 5.4% year-over-year. Its GAAP earnings per share of $0.07 was in line with Wall Street's expectations. Despite the mixed current results, investors appeared to focus on the company's positive outlook. Management reconfirmed its full-year revenue guidance of $385 million at the midpoint, slightly ahead of analyst forecasts. More notably, its full-year adjusted EBITDA guidance of $97.5 million also topped consensus estimates, signaling confidence in future profitability.
Concrete Pumping is up 10.8% since the beginning of the year, but at $7.35 per share, it is still trading 18.8% below its 52-week high of $9.04 from January 2025. Investors who bought $1,000 worth of Concrete Pumping’s shares 5 years ago would now be looking at an investment worth $1,855.
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