We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Great Lakes Wins $141M Dredging Contracts, Boosts Revenues
Read MoreHide Full Article
Great Lakes Dredge & Dock Corporation (GLDD - Free Report) received several major dredging contracts for a consolidated amount of $141 million. Notably, these awards are expected to be accretive to 2019 and 2020 earnings.
The first one is Jacksonville Deepening Contract B, which was initiated in 2018. The contract work, which is likely to begin in September and last till 2020-end, is a continuation of channel deepening an additional 2.5 miles upriver. Notably, the contract is valued at $96.6 million, which is the highest among the recently received contracts.
The second, which has a value of $38.4 million, is the Baltimore Harbor project. Per the project, Great Lakes will provide maintenance services for dredging of the sea-lanes in Baltimore. The contract work is anticipated to start in first-quarter 2020.
The last one is the Boston Harbor project, under which the company will perform maintenance dredging of the inner harbor channels in Boston. The contract is valued at $5.6 million and its associated work will start in late September.
U.S. Dredging Operation to Aid Top Line
Great Lakes is the largest provider of dredging services in the United States. The company’s revenues improved 40.4% in the past six-month period. The upside was driven by strong project performance throughout the domestic fleet.
Although its backlog at the end of the second quarter declined from the year-ago period, it expects bidding to increase significantly in the third and fourth quarters. The company sees additional phases of multiple large deepening and other capital projects to bid in the upcoming quarters. It also expects to bid on projects funded by $17.4 billion disaster supplemental appropriations.
In first-half 2019, the company registered adjusted EBITDA of $75.7 million compared with $37 million in the comparable year-ago period. Its continuous focus on large and technically challenging port deepening projects, major coastal restoration projects and shipping channel improvement projects — which are driven by new energy export facilities — is a major growth driver.
Shares of this Zacks Rank #2 (Buy) company have outperformed the industry so far this year. The stock has gained 48.6% in the said period compared with the 23.7% growth of industry. The price performance was mainly driven by solid project execution strategy and strong year-over-year performance. This trend is expected to continue in the current year as well. The Zacks Consensus Estimate for earnings is currently pegged at 74 cents, indicating 335.3% year-over-year improvement. Notably, the company’s earnings surpassed the consensus mark in each of the trailing seven quarters.
MasTec surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average being 21.7%.
North American Construction has an expected earnings growth rate of 228.6% for 2019.
EMCOR has a projected earnings growth rate of 16% for the current year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
Great Lakes Wins $141M Dredging Contracts, Boosts Revenues
Great Lakes Dredge & Dock Corporation (GLDD - Free Report) received several major dredging contracts for a consolidated amount of $141 million. Notably, these awards are expected to be accretive to 2019 and 2020 earnings.
The first one is Jacksonville Deepening Contract B, which was initiated in 2018. The contract work, which is likely to begin in September and last till 2020-end, is a continuation of channel deepening an additional 2.5 miles upriver. Notably, the contract is valued at $96.6 million, which is the highest among the recently received contracts.
The second, which has a value of $38.4 million, is the Baltimore Harbor project. Per the project, Great Lakes will provide maintenance services for dredging of the sea-lanes in Baltimore. The contract work is anticipated to start in first-quarter 2020.
The last one is the Boston Harbor project, under which the company will perform maintenance dredging of the inner harbor channels in Boston. The contract is valued at $5.6 million and its associated work will start in late September.
U.S. Dredging Operation to Aid Top Line
Great Lakes is the largest provider of dredging services in the United States. The company’s revenues improved 40.4% in the past six-month period. The upside was driven by strong project performance throughout the domestic fleet.
Although its backlog at the end of the second quarter declined from the year-ago period, it expects bidding to increase significantly in the third and fourth quarters. The company sees additional phases of multiple large deepening and other capital projects to bid in the upcoming quarters. It also expects to bid on projects funded by $17.4 billion disaster supplemental appropriations.
In first-half 2019, the company registered adjusted EBITDA of $75.7 million compared with $37 million in the comparable year-ago period. Its continuous focus on large and technically challenging port deepening projects, major coastal restoration projects and shipping channel improvement projects — which are driven by new energy export facilities — is a major growth driver.
Shares of this Zacks Rank #2 (Buy) company have outperformed the industry so far this year. The stock has gained 48.6% in the said period compared with the 23.7% growth of industry. The price performance was mainly driven by solid project execution strategy and strong year-over-year performance. This trend is expected to continue in the current year as well. The Zacks Consensus Estimate for earnings is currently pegged at 74 cents, indicating 335.3% year-over-year improvement. Notably, the company’s earnings surpassed the consensus mark in each of the trailing seven quarters.
Other Stocks to Consider
Other top-ranked stocks in the same space include MasTec, Inc. (MTZ - Free Report) , North American Construction Group Ltd. (NOA - Free Report) and EMCOR Group, Inc. (EME - Free Report) . While MasTec and North American Construction sport a Zacks Rank #1 (Strong Buy), EMCOR carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
MasTec surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average being 21.7%.
North American Construction has an expected earnings growth rate of 228.6% for 2019.
EMCOR has a projected earnings growth rate of 16% for the current year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>