Great Lakes Dredge & Dock Corporation GLDD is scheduled to report results for the third quarter of 2024 on Nov. 5, before market open.

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In the last quarter, earnings and revenues topped the Zacks Consensus Estimate by 266.7% and 3.1%, respectively. Moreover, on a year-over-year basis, both bottom and top lines grew.

Notably, the company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 215.3%.

Trend in Estimate Revision of GLDD

The Zacks Consensus Estimate for third-quarter earnings per share has remained unchanged at 18 cents in the past 60 days, implying a significant 300% increase compared with the prior-year period.

The consensus mark for revenues is pegged at $180.8 million, indicating 54.3% growth from the year-ago quarter’s level.

Factors to Shape Great Lakes’ Quarterly Results

Great Lakes’ third quarter top line is expected to have gained year over year on the back of solid contributions from the company’s Capital (the United States) and Coastal Protection work types, reflecting its focus on the new build program and the ongoing demand strength for dredging services. Also, continuous strength in support from the Biden Administration and Congress for the dredging industry is likely to have aided its third-quarter performance.

The company anticipates a robust third-quarter performance, with utilization and revenues expected to have surpassed second-quarter levels. This growth outlook is supported by the commencement of both LNG projects and an increase in workload projected for the second half of the year, particularly in the third quarter.

The Capital work type’s (contributed 41.6% to second-quarter 2024 revenues) performance is likely to have been driven by increased project activity in Texas. The Coastal Protection work type’s (contributed 41.3% to second-quarter revenues) performance is likely to have been attributable to increased project activity in Alabama and Florida.

Furthermore, the company is optimistic about the growth trends within its Maintenance (contributed 16.7% to second-quarter revenues) work type as well. This uptrend is likely to have been backed by GLDD’s year-over-year dredging backlog growth, enhanced fleet position and focus on strategic initiatives.

The Zacks Consensus Estimate for the revenues of the Capital (the United States), Coastal Protection and Maintenance work types is pegged at $93 million, $43.6 million and $36.2 million, indicating year-over-year growth of 70.3%, 84.7% and 7.1%, respectively.

However, the Rivers & Lakes segment (contributed 0.4% to second-quarter revenues) is likely to have been impacted by dismal project activity in Tennessee and Arkansas. The consensus mark for the Rivers & Lakes work type’s revenues is pegged at $4 million, down 23.1% year over year.

Despite increased general and administrative expenses, the company is expected to have achieved year-over-year growth in margin and earnings. Improved utilization and project performance, a well-executed dry-dock program and disciplined cost control are likely to have aided its third-quarter’s bottom-line performance.

What the Zacks Model Unveils for GLDD

Our proven model does not conclusively predict an earnings beat for Great Lakes this time around. The company does not have the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to increase the odds of an earnings beat.

Earnings ESP: GLDD has an Earnings ESP of 0.00% at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

GLDD’s Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Construction Releases

Quanta Services Inc. PWR reported mixed results for the third quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same.

Quanta reported double-digit growth across key financial metrics, a record backlog of $34 billion and $539.5 million in free cash flow. CEO Duke Austin attributed this growth to Quanta’s diverse portfolio, high demand, effective execution and an expanding market.

Masco Corporation MAS reported third-quarter 2024 results, wherein earnings met the Zacks Consensus Estimate and net sales marginally beat the same. Strong operational efficiency helped it deliver strong earnings amid challenging market conditions.

Masco lowered the upper limit of its 2024 adjusted EPS guidance due to challenged market demand.

Armstrong World Industries, Inc. AWI reported solid results for the third quarter of 2024, wherein earnings and net sales topped the Zacks Consensus Estimate and increased on a year-over-year basis.

Given the solid third-quarter results and improved line of sight for the full year, Armstrong World raised its 2024 guidance for adjusted EBITDA, adjusted EPS and adjusted free cash flow.

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