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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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 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 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.