The heavy civil construction company, Sterling Construction Co. Inc. (STRL - Snapshot Report) announced that its subsidiary – Ralph L. Wadsworth Construction Company, LLC (RLW) and J. Banicki Construction, Inc. (Banicki) have been awarded $65 million in projects in Utah and Arizona.
The first project, located at Salt Lake City International Airport, is valued at nearly $34 million. The project consists of all concrete work related to the Terminal, South Concourse West, Gateway Buildings and associated tunnels. Construction work will begin in Dec 2016 and is expected to be completed within two years.
The second project, also at Salt Lake City International Airport, is valued at approximately $17 million. The scope of the project constitutes the deep foundation package and includes more than 225,000 linear feet of concrete-filled steel pipe piles, ranging in depth from 60 to 120 feet. Construction is scheduled to start in Dec 2016 with completion expected by summer 2017.
The remaining airport projects are located mainly at Phoenix Sky Harbor International Airport in Arizona. They have a combined value of more than $14 million. The scope of work on these projects consists of the removal and replacement of the north side of Terminal 4, which is one of the busiest taxiways at Sky Harbor Airport. The projects will overlap the current American Airlines re-gating project and will likely take 13 months to be completed.
Sterling Construction remains optimistic and expects these new awards to exemplify its strategic focus, helping to increase its backlog and track record in the aviation infrastructure market. The company plans to aggressively pursue similar projects in the coming years as air travel continues to grow across the U.S.
Since its second-quarter 2016 earnings release in August, Sterling Construction has won new contracts that position it well to continue adding attractive and profitable opportunities to its backlog. Thus, the company is poised to grow on the strength of its balance sheet and improved financial flexibility.
Sterling Construction currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include MasTec, Inc. (MTZ - Analyst Report) , Dycom Industries Inc. (DY - Analyst Report) and Orion Group Holdings, Inc. (ORN - Snapshot Report) .
MasTec has seen upward estimate revisions of around 1.5% over the past 30 days. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dycom Industries, which carries a Zacks Rank #2 (Buy), has witnessed upward estimate revisions of roughly 1.9% over the past 60 days.
Orion Group, also a Zacks Rank #2 stock, has seen upward estimate revisions of 7% over the past 60 days.
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