Here's What Investors Must Know Ahead of Argan's Q4 Earnings Release

Argan, Inc. AGX is scheduled to report its fourth-quarter fiscal 2026 results on March 26, after market close.

In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 19.2% and 5.1%, respectively. On a year-over-year basis, the bottom line grew 8.5%, while the top line declined 2.3%.

How are Estimates Placed for AGX Stock?

The Zacks Consensus Estimate for fiscal fourth-quarter earnings per share (EPS) has remained unchanged at $1.99 over the past 60 days. The revised estimate indicates 10.4% year-over-year decline.

The consensus estimate for revenues is pegged at $255 million, indicating a 9.7% year-over-year rise from $232.5 million.

Argan, Inc. Price and EPS Surprise

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

Factors Likely to Have Shaped Argan’s Q4 Performance

Argan’s top-line performance in the fiscal fourth quarter is expected to have benefited from the increasing demand for its capabilities due to the growth in AI and data center projects. The urgency in the market’s demand is expected to have stemmed from the retirement of many natural gas-fired and coal plants, alongside an incremental public funding environment. This growth is visible in the increased contributions from AGX’s three reportable segments, Power Services (contributing 77.8% of third-quarter fiscal 2026 revenues), Industrial Services (19.7%) and Telecom Services (2.5%).

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.

Meanwhile, Argan’s bottom line is expected to have declined year over year because of elevated selling, general and administrative expenses alongside ongoing macro uncertainties. Although increases in expenses are concerning for bottom-line growth, the increasing top line and favorable market demand trends are likely to have somewhat 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.

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector, which per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.

AECOM ACM has an Earnings ESP of +5.66% and a Zacks Rank of 2 at present.

AECOM reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 2.2%. AECOM’s earnings for the second quarter of fiscal 2026 are expected to grow 27.2% from the prior year.

United Rentals, Inc. URI currently has an Earnings ESP of +0.58% and a Zacks Rank of 3.

United Rentals’ earnings for the first quarter of 2026 are expected to increase 2% year over year. United Rentals reported better-than-expected earnings in one of the last four quarters and missed on the remaining three occasions, the average negative surprise being 3.4%.

Masco Corporation MAS currently has an Earnings ESP of +0.10% and a Zacks Rank of 3.

Masco reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the average surprise being 3.8%. Masco’s earnings for the first quarter of 2026 are expected to increase year over year by 1.2%.

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

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