The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Granite Construction whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped. GAAP earnings per share dropped.
Gross margins dropped, operating margins contracted, net margins expanded.
Granite Construction booked revenue of $504.8 million. The six analysts polled by S&P Capital IQ looked for revenue of $612.3 million on the same basis. GAAP reported sales were 6.4% lower than the prior-year quarter's $539.5 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 $0.48. The six earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share. Non-GAAP EPS of $0.48 for Q4 were 2.0% lower than the prior-year quarter's $0.49 per share. GAAP EPS of $0.46 for Q4 were 4.2% lower than the prior-year quarter's $0.48 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 11.3%, 340 basis points worse than the prior-year quarter. Operating margin was -0.1%, 720 basis points worse than the prior-year quarter. Net margin was 3.6%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $359.0 million. On the bottom line, the average EPS estimate is -$0.20.
Next year's average estimate for revenue is $2.56 billion. The average EPS estimate is $1.87.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 217 members out of 240 rating the stock outperform, and 23 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 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 $32.57.
If you're interested in companies like Granite Construction, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.
- Add Granite Construction to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.