Granite Construction Outruns Estimates Again
Granite Construction (NYS: GVA) reported earnings on Feb. 22. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Granite Construction beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew.
Margins expanded across the board.
Granite Construction reported revenue of $539.5 million. The nine analysts polled by S&P Capital IQ anticipated a top line of $495.7 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $417.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.49. The nine earnings estimates compiled by S&P Capital IQ forecast $0.37 per share on the same basis. GAAP EPS were $0.48 for Q4 compared to -$1.32 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.7%, 320 basis points better than the prior-year quarter. Operating margin was 6.8%, 430 basis points better than the prior-year quarter. Net margin was 3.5%, 1,550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $313.0 million. On the bottom line, the average EPS estimate is -$0.31.
Next year's average estimate for revenue is $2.14 billion. The average EPS estimate is $1.44.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 229 members out of 251 rating the stock outperform, and 22 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Granite Construction a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Granite Construction is hold, with an average price target of $26.90.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.