Dredging and coastal protection company Great Lakes Dredge & Dock (NASDAQ:GLDD) will be reporting earnings tomorrow before market hours. Here’s what to look for.

Great Lakes Dredge & Dock beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $191.2 million, up 63.1% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.

Is Great Lakes Dredge & Dock a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Great Lakes Dredge & Dock’s revenue to grow 16.2% year on year to $211.2 million, slowing from the 23.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 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. Great Lakes Dredge & Dock has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Great Lakes Dredge & Dock’s peers in the construction and maintenance services 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.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the construction and maintenance services stocks have shown solid performance, the group has generally underperformed, with share prices down 4.6% on average over the last month. Great Lakes Dredge & Dock is down 12.9% during the same time and is heading into earnings with an average analyst price target of $14.67 (compared to the current share price of $10.83).

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