AGX - Argan falls on Q1 earnings miss

2023-06-09 12:44:41 ET

Power industry solutions provider Argan ( NYSE: AGX ) fell ~14% on Friday noon on the back of a Q1'24 earnings miss.

The company's Q1 GAAP EPS of $0.16 misses by $0.12 and revenue of $103.68M (+3.4% Y/Y) misses by $9.77M.

Gross profit stood at $14.22M, down from the year-ago $19.74M. Gross margin was 13.7%, compared to $19.7% in the year-ago quarter.

EBITDA decreased to $3.6M from $10.7M.

The results were primarily affected by the reduction in gross profit between periods and a loss related to fraudulently-induced wire transfers, according to the Q1 earnings release.

The fraudulently induced wire transfers impacted the results with a one-time pretax charge of ~$3.2M, or $0.24 per diluted share.

The new debt ceiling legislation is expected to have a potential upside for Argan, while an estimated drop in coal-fired power generation is likely to create significant potential tailwinds, according to the company's Q1 earnings call.

For further details see: