Granite Construction Meets on the Top Line, Misses Where It Counts
Granite Construction (NYS: GVA) reported earnings on May 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Granite Construction met expectations on revenues and missed expectations on earnings per share.
Compared with the prior-year quarter, revenue expanded significantly and GAAP loss per share increased.
Margins contracted across the board.
Granite Construction notched revenue of $310.2 million. The eight analysts polled by S&P Capital IQ hoped for revenue of $312.6 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $256.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.34. The six earnings estimates compiled by S&P Capital IQ forecast -$0.26 per share. GAAP EPS were -$0.31 for Q1 versus -$0.24 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 8.0%, 370 basis points worse than the prior-year quarter. Operating margin was -5.9%, 70 basis points worse than the prior-year quarter. Net margin was -3.8%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $543.5 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $2.18 billion. The average EPS estimate is $1.55.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 225 members out of 247 rating the stock outperform, and 22 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give Granite Construction a green thumbs-up, and 10 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 $29.80.
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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. He is the 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 don't 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.