Argan Inc (NYSE:AGX) stock rallies 22.58% (As on April 12, 11:08:43 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. The Company experienced increased revenues at several projects, including the Shannonbridge Power Project; the Trumbull Energy Center, a large combined cycle, gas-fired power plant under construction near Lordstown, Ohio; and the three ESB FlexGen Peaker Plants being built in Dublin, Ireland. The increase in revenues was partially offset by decreased revenues at the Guernsey Power Station and Kilroot project as the projects were at or near completion during the current quarter. For the quarter ended January 31, 2024, Argan’s consolidated gross profit was approximately $23.6 million, or 14.4% of consolidated revenues, reflecting positive contributions across all three reportable business segments. However, the consolidated gross profit for the quarter was adversely impacted by the loss related to the Kilroot project. Consolidated gross profit for the quarter ended January 31, 2023 was $20.0 million, or 16.9% of consolidated revenues. For the quarter ended January 31, 2024, Argan achieved net income of $12.0 million, compared to $13.6 million, for last year’s comparable quarter. EBITDA for the quarter ended January 31, 2024 increased to $17.6 million compared to $11.2 million in the same period of last year. As of January 31, 2024, cash and liquid investments totaled $412.4 million and balance sheet net liquidity was $244.9 million; furthermore, the Company had no debt.

AGX in the fourth quarter of FY 23 has reported the adjusted earnings per share of 89 cents, beating the analysts’ estimates for the adjusted earnings per share by 14 cents. The company had reported the adjusted revenue growth of 38.5 percent to $164.55 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue by $2.5 million. Revenues from the power industry services business increased by 20.3%, to $416.3 million for the year ended January 31, 2024.

Additionally, the company has declared a regular quarterly cash dividend of $0.30 per share of common stock, payable April 30, 2024 to stockholders of record at the close of business on April 22, 2024. The Company increased its quarterly cash dividend by 20%. During Fiscal 2024, the Company repurchased 303,160 shares of common stock at a cost of $12.5 million, including the repurchase of 90,719 shares of common stock at a cost of $4.0 million during the three months ended January 31, 2024.