Why Concrete Pumping Stock Is Down Today
Higher interest rates are putting pressure on industrial activity and construction, softening demand for concrete. That could explain why shares of Concrete Pumping Holdings (NASDAQ: BBCP), one of the companies responsible for all of that concrete, traded down 11% on Friday at 10:30 a.m. ET after the company missed quarterly estimates and lowered full-year expectations.
Concrete Pumping earned $0.05 per share in its fiscal second quarter, ending April 30, on revenue of $107.1 million, falling short of Wall Street's estimates of $0.10 per share on $112 million in sales. Revenue and income for operations were both down slightly year over year, with concrete waste disposal up, but new construction projects down.
CEO Bruce Young attributed the decline in concrete pumping to "interest-rate-sensitive commercial work being further delayed, as well as another quarter of above-average rainfall in Texas and our markets in the southwestern United States."
Source Fool.com
