Cardinal Infrastructure Group Stock Crashes After Big Earnings Miss

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Cardinal Infrastructure Group shares plunged 25.7% after the company reported a significant second-quarter earnings miss. The company posted adjusted earnings of $0.26 per share on revenue of $226.9 million, well below analyst estimates of $0.47 per share and $274.7 million. While revenue grew 114% year over year and full-year sales guidance was raised to between $880 million and $900 million, management lowered its adjusted EBITDA margin guidance to 16% to 18% from above 20%. Investors focused on the sharp margin contraction and a deceleration in backlog growth to 35% from 60% in the prior quarter, raising concerns about revenue quality and the growth outlook.

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