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Granite Construction Poised for Robust Q3 on Contract Wins
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Granite Construction Incorporated (GVA - Free Report) continued its contract-winning streak by winning two reconstruction projects in the last two weeks. These contracts will boost the company’s backlog performance in third-quarter 2017.
Runway Rehabilitation Project in San Diego
On Sep 20, Granite Construction announced that it was awarded a $23-million runway rehabilitation contract by the San Diego County Regional Airport Authority. Scope of the work includes the renovation of the Runway 9-27 and Cross Taxiways B1, B4-B7, C3 Rehabilitation Project at the San Diego International Airport.
The work involves the milling and replacing approximately 2.5 million square feet of asphalt concrete pavement, reconstruction of a new taxiway, upgrading of lighting and signage, and new striping and marking of the runway.
Construction is scheduled to begin in October 2017 and conclude in September 2018. The contract will be included in Granite’s third-quarter 2017 backlog.
Runway Reconstruction Project in Los Angeles
Earlier on Sep 15, Granite Construction had announced that it has been awarded a $41-million contract by the Los Angeles World Airports for the Runway 25R Reconstruction Project at the Los Angeles International Airport. Scope of work includes the reconstruction of runway 25R, several taxiways and the structural strengthening of the airfield bridge over the Sepulveda Tunnel.
Construction is scheduled to begin in September 2017 and conclude in August 2018. The contract will be included in Granite’s third-quarter 2017 backlog.
Other Previous Contracts
Granite Construction has won several contracts in the recent past. In the last month, a joint venture between Granite Construction and Obayashi Corporation was awarded a $165-million contract by the Naval Facilities Engineering Command Pacific for the Finegayan Utilities and Site Improvements Phase I project in Finegayan, Guam. The company has also been awarded a $21-million contract by the Illinois Department of Transportation for the reconstruction and widening of the Van Buren Street Bridge in Chicago, IL.
Growth Drivers
The company’s total contract backlog increased 8.4% to $4.06 billion in second-quarter 2017. Granite Construction intends to focus on the execution of its large project backlog, apart from bidding for, and winning new deals and contracts. The company is also targeting larger projects to bid later this year in California, Nebraska and Wyoming.
Granite Construction belongs to the Zacks Building Products – Heavy Construction industry, which falls under the broader Zacks Construction sector. The construction sector has been witnessing good tidings, of late. Positives like modest wage growth, low unemployment levels, upbeat consumer confidence and a tight supply situation raise optimism over the sector’s performance. Moreover, an improving economy, better visibility from the FAST Act and an improved funding environment bode well for Granite Construction.
Other Construction Peers
Other companies in the construction sector have also been performing well in 2017 due to recovery in construction activity. Thus, it looks like a good time to add a few construction stocks and cash in on the bullish momentum.
MasTec, Inc. (MTZ - Free Report) posted record second-quarter 2017 adjusted earnings per share of $1.03 that surged an impressive 186% year over year. The better-than-expected performance was particularly led by record levels of Oil & Gas project activity.
EMCOR Group, Inc. (EME - Free Report) also in the same space, posted impressive second-quarter 2017 results. Its adjusted earnings from continuing operations of 95 cents trumped the Zacks Consensus Estimate by 18.8%. Encouraged by its impressive top-line performance, accretive acquisitions and increasing traction in the U.S. construction space, EMCOR’s management raised its 2017 guidance.
Armstrong World Industries, Inc.’s (AWI - Free Report) adjusted earnings increased 30% year over year in second-quarter 2017, driven by higher global volumes, improvements in AUV and lower manufacturing and input costs. Backed by healthy sales growth in the first half of the year and expectations for improving performance in international markets, the company also increased its guidance for 2017.
4 Stocks to Watch after the Massive Equifax Hack
Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?
Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor’s Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.
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Granite Construction Poised for Robust Q3 on Contract Wins
Granite Construction Incorporated (GVA - Free Report) continued its contract-winning streak by winning two reconstruction projects in the last two weeks. These contracts will boost the company’s backlog performance in third-quarter 2017.
Runway Rehabilitation Project in San Diego
On Sep 20, Granite Construction announced that it was awarded a $23-million runway rehabilitation contract by the San Diego County Regional Airport Authority. Scope of the work includes the renovation of the Runway 9-27 and Cross Taxiways B1, B4-B7, C3 Rehabilitation Project at the San Diego International Airport.
The work involves the milling and replacing approximately 2.5 million square feet of asphalt concrete pavement, reconstruction of a new taxiway, upgrading of lighting and signage, and new striping and marking of the runway.
Construction is scheduled to begin in October 2017 and conclude in September 2018. The contract will be included in Granite’s third-quarter 2017 backlog.
Runway Reconstruction Project in Los Angeles
Earlier on Sep 15, Granite Construction had announced that it has been awarded a $41-million contract by the Los Angeles World Airports for the Runway 25R Reconstruction Project at the Los Angeles International Airport. Scope of work includes the reconstruction of runway 25R, several taxiways and the structural strengthening of the airfield bridge over the Sepulveda Tunnel.
Construction is scheduled to begin in September 2017 and conclude in August 2018. The contract will be included in Granite’s third-quarter 2017 backlog.
Other Previous Contracts
Granite Construction has won several contracts in the recent past. In the last month, a joint venture between Granite Construction and Obayashi Corporation was awarded a $165-million contract by the Naval Facilities Engineering Command Pacific for the Finegayan Utilities and Site Improvements Phase I project in Finegayan, Guam. The company has also been awarded a $21-million contract by the Illinois Department of Transportation for the reconstruction and widening of the Van Buren Street Bridge in Chicago, IL.
Growth Drivers
The company’s total contract backlog increased 8.4% to $4.06 billion in second-quarter 2017. Granite Construction intends to focus on the execution of its large project backlog, apart from bidding for, and winning new deals and contracts. The company is also targeting larger projects to bid later this year in California, Nebraska and Wyoming.
Granite Construction belongs to the Zacks Building Products – Heavy Construction industry, which falls under the broader Zacks Construction sector. The construction sector has been witnessing good tidings, of late. Positives like modest wage growth, low unemployment levels, upbeat consumer confidence and a tight supply situation raise optimism over the sector’s performance. Moreover, an improving economy, better visibility from the FAST Act and an improved funding environment bode well for Granite Construction.
Other Construction Peers
Other companies in the construction sector have also been performing well in 2017 due to recovery in construction activity. Thus, it looks like a good time to add a few construction stocks and cash in on the bullish momentum.
MasTec, Inc. (MTZ - Free Report) posted record second-quarter 2017 adjusted earnings per share of $1.03 that surged an impressive 186% year over year. The better-than-expected performance was particularly led by record levels of Oil & Gas project activity.
EMCOR Group, Inc. (EME - Free Report) also in the same space, posted impressive second-quarter 2017 results. Its adjusted earnings from continuing operations of 95 cents trumped the Zacks Consensus Estimate by 18.8%. Encouraged by its impressive top-line performance, accretive acquisitions and increasing traction in the U.S. construction space, EMCOR’s management raised its 2017 guidance.
Armstrong World Industries, Inc.’s (AWI - Free Report) adjusted earnings increased 30% year over year in second-quarter 2017, driven by higher global volumes, improvements in AUV and lower manufacturing and input costs. Backed by healthy sales growth in the first half of the year and expectations for improving performance in international markets, the company also increased its guidance for 2017.
4 Stocks to Watch after the Massive Equifax Hack
Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?
Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor’s Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.
Get the new Investing Guide now>>