Bowman Consulting (BWMN) Soars 5.73% on Strong Q1 Earnings

Bowman Consulting (BWMN) shares surged 5.73% today, marking the second consecutive day of gains, with a total increase of 6.63% over the past two days. The stock price reached its highest level since February 2025, with an intraday gain of 12.26%.

The strategy of buying BWMN shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.56% annualized gain. This suggests a defensive approach, as the strategy largely avoided the downturns in 2022 and 2023 while capturing some of the subsequent recoveries. However, the returns were relatively modest, indicating that the high point may not always serve as a reliable anchor for long-term gains.

Bowman Consulting reported robust first-quarter 2025 earnings, exceeding consensus expectations. The company's gross contract revenue increased by 19%, reaching $112.9 million compared to $94.9 million from the previous year. This growth was primarily driven by gains in the transportation and power/utilities sectors. Bowman also reported quarterly earnings of $0.07 per share, surpassing the Zacks Consensus Estimate of $0.03 per share, representing an earnings surprise of 133.33%.

Bowman Consulting has consistently outperformed revenue estimates, topping consensus revenue estimates two times over the last four quarters. Despite the company's shares having lost about 9.9% since the beginning of the year, the favorable trend in earnings estimate revisions has resulted in a Zacks Rank #1 (Strong Buy) for the stock, suggesting it is expected to outperform the market in the near future. This positive outlook, coupled with strong earnings performance, has likely contributed to the recent surge in the company's stock price.