The 10-second takeaway
For the quarter ended March 31 (Q1), Granite Construction beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP loss per share increased. GAAP loss per share grew.
Margins shrank across the board.
Granite Construction logged revenue of $378.7 million. The six analysts polled by S&P Capital IQ foresaw a top line of $352.3 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $310.2 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 -$0.58. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.24 per share. Non-GAAP EPS were -$0.58 for Q1 compared to -$0.34 per share for the prior-year quarter. GAAP EPS were -$0.57 for Q1 against -$0.31 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 7.9%, 10 basis points worse than the prior-year quarter. Operating margin was -7.3%, 80 basis points worse than the prior-year quarter. Net margin was -5.8%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $671.7 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $2.52 billion. The average EPS estimate is $1.10.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 213 members out of 234 rating the stock outperform, and 21 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 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 outperform, with an average price target of $34.71.
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