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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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 of Motley 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.