Construction and construction materials company Granite Construction (NYSE:GVA) will be reporting earnings tomorrow before the bell. Here’s what investors should know.
Granite Construction beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $977.3 million, up 4.7% year on year. It was a slower 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 5% year on year to $705.9 million, slowing from the 20% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.46 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 twice over the last two years.
Looking at Granite Construction’s peers in the construction and engineering segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Comfort Systems delivered year-on-year revenue growth of 19.1%, beating analysts’ expectations by 4.2%, and Orion reported revenues up 17.4%, topping estimates by 8.8%. Comfort Systems traded up 5.6% following the results.
Read our full analysis of Comfort Systems’s results here and Orion’s results here.
Investors in the construction and engineering segment have had fairly steady hands going into earnings, with share prices down 1.6% on average over the last month. Granite Construction is up 4.3% during the same time and is heading into earnings with an average analyst price target of $100.25 (compared to the current share price of $79.61).
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