Argan, Inc. (NYSE:AGX) stock plunges 13.38% (As on June 9, 11:49:16 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the first quarter of FY 24. Due meaningfully to this change in the mix of major projects for the quarter ended April 30, 2023, the Company’s consolidated gross profit declined to approximately $14.2 million, which reflected a consolidated gross margin of 13.7%, compared to consolidated gross profit of $19.7 million reported for the first quarter of the prior fiscal year, which reflected a gross margin of 19.7%. For the quarter ended April 30, 2023, Argan achieved net income of $2.1 million, compared to $7.5 million for last year’s comparable quarter. EBITDA for the quarter ended April 30, 2023 was $3.6 million compared to $10.7 million in the same period of last year. As of April 30, 2023, the cash and liquid investments totaled $317 million and balance sheet net liquidity was $233 million; furthermore, the Company had no debt.

AGX in the first quarter of FY 24 has reported the adjusted earnings per share of 16 cents, missing the analysts’ estimates for the adjusted earnings per share by 12 cents. The company had reported 3.4 percent rise in the adjusted revenue to $103.7 million in the first quarter of FY 24, missing the analysts’ estimates for revenue of $113.5 million. The Company experienced increased revenues at several projects, including the Kilroot Power Station under construction near Belfast in Northern Ireland; the three ESB FlexGen peaker plants being built in Dublin, Ireland; and the Trumbull Energy Center, a large combined cycle, gas-fired power plant near Lordstown, Ohio. The increase in revenues were partially offset by decreased revenues at the Guernsey Power Station, the Maple Hill Solar energy project and Equinix data center project, as these projects are generally near or at completion. Selling, general and administrative expenses remained consistent at $10.6 million for the quarter ended April 30, 2023 as compared to the same prior year period.

Additionally, during the quarter ended April 30, 2023, the Company repurchased 92,656 shares of common stock at a cost of $3.7 million. Since the share repurchase program began in November 2021, the Company has repurchased approximately 2.5 million shares of common stock, or approximately 15% of its outstanding shares, at a cost of approximately $92.4 million under the $125.0 million share repurchase plan authorized by the Company’s board of directors.