Back to top

Image: Bigstock

Tutor Perini Gets Notice for $1.4B LA County MTA Contract

Read MoreHide Full Article

Tutor Perini Corporation (TPC - Free Report) has received a notice from the Los Angeles County Metropolitan Transportation Authority, in which  the transportation authority mentioned its intention to award a contract to Tutor Perini for the Westside Purple Line Extension Section 2 Project.

The project involves construction of a 2.6-mile extension of the subway through Beverly Hills to Century City, including two new underground stations at Wilshire/Rodeo and Constellation/Avenue of the Stars. This subway extension will provide a high-capacity, high-speed, dependable transit alternative for those traveling to and from Los Angeles’ Westside.

The value of the contract is projected to be approximately $1.377 billion. Tutor Perini will serve as the lead partner, for the contract, on its joint-venture team with O&G Industries.

The contract award is expected by the end of Jan 2017, with the notice to proceed in Mar 2017. Substantial completion of the project is anticipated in Jan 2025. Tutor Perini’s portion of the contract value is likely to be included in first-quarter 2017 backlog.

Notably, this is one of the valuable contracts for the company. Tutor Perini’s financial strength and outstanding record of performance on challenging civil works projects enable it to score large projects.

Earlier, on Jan 9, 2017, Tutor Perini had announced that its subsidiary – Tutor Perini Building Corp. – has received a $72 million contract to build the first of eight residential towers at Metropica, located at 1800 NW 136th Avenue in Sunrise, FL.

Tutor Perini foresees gaining incremental new awards and revenue contributions from the newhighway bill in 2017, continuing through 2020. Moreover, the solid backlog, large volume of work and robust pipeline continue to support a favorable long-term outlook for growth and profitability for the company.

Investors should note that Tutor Perini’s shares gained a whopping 102.2% over the past one year, significantly outpacing the 38.6% rise of the Zacks classified Building-Heavy Construction industry.

 



Zacks Rank & Key Picks

Tutor Perini currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector include MasTec, Inc. (MTZ - Free Report) , NCI Building Systems, Inc. and Gibraltar Industries, Inc. (ROCK - Free Report) .

MasTec has an impressive track record of earnings surprise, with an average positive earnings surprise of 61.27%, for the last four quarters and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NCI Building Systems also boasts a Zacks Rank #1 and has an average earnings surprise of 87.26% for the trailing four quarters. Gibraltar Industries, another Zacks Rank #1 stock, has an average positive earnings surprise of 67.30% for the past four quarters.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?

Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Gibraltar Industries, Inc. (ROCK) - free report >>

Tutor Perini Corporation (TPC) - free report >>

MasTec, Inc. (MTZ) - free report >>

Published in