The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Granite Construction whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share grew.
Margins expanded across the board.
Granite Construction logged revenue of $728.5 million. The six analysts polled by S&P Capital IQ expected to see a top line of $843.4 million on the same basis. GAAP reported sales were 0.0% lower than the prior-year quarter's $728.6 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 $0.94. The five earnings estimates compiled by S&P Capital IQ predicted $0.87 per share. GAAP EPS of $0.94 for Q3 were 1.1% higher than the prior-year quarter's $0.93 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.9%, 100 basis points better than the prior-year quarter. Operating margin was 8.2%, 70 basis points better than the prior-year quarter. Net margin was 5.1%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $644.6 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $2.32 billion. The average EPS estimate is $1.14.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 224 members out of 247 rating the stock outperform, and 23 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Granite Construction a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Granite Construction is outperform, with an average price target of $30.31.
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