Construction and construction materials company Granite Construction (NYSE:GVA) will be reporting earnings tomorrow before market open. Here’s what to look for.
Granite Construction met analysts’ revenue expectations last quarter, reporting revenues of $1.28 billion, up 14.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
Is Granite Construction a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Granite Construction’s revenue to grow 1.8% year on year to $950.5 million, slowing from the 18.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.24 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Granite Construction has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Granite Construction’s peers in the construction and engineering segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Construction Partners delivered year-on-year revenue growth of 41.6%, beating analysts’ expectations by 9.7%, and Matrix Service reported revenues up 6.9%, topping estimates by 1.1%. Construction Partners traded down 3.6% following the results while Matrix Service’s stock price was unchanged.
Read our full analysis of Construction Partners’s results here and Matrix Service’s results here.
Investors in the construction and engineering segment have had steady hands going into earnings, with share prices flat over the last month. Granite Construction is down 1.7% during the same time and is heading into earnings with an average analyst price target of $99 (compared to the current share price of $88.59).
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