## Granite Construction (GVA) Earnings Preview: What to Expect on October 31st
Investors are eagerly awaiting Granite Construction’s (GVA) quarterly earnings report, scheduled for release on Thursday, October 31st, 2024. The company’s performance in recent quarters has been strong, and analysts are expecting more of the same.
Earnings Expectations:
Analysts anticipate Granite Construction to report an earnings per share (EPS) of $2.36. This figure represents a significant potential for growth, and investors will be looking for confirmation that the company is on track to meet or even exceed these expectations. Guidance for the next quarter will also be a key factor to watch, as it can significantly impact stock price movements.
Past Performance:
Granite Construction has a history of exceeding earnings estimates. In the last quarter, the company beat EPS by $0.34, resulting in a 0.19% increase in the share price the following day. Here’s a look at the company’s recent performance:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 1.39 | 1.73 | 0.0% |
| Q1 2024 | -0.35 | -0.21 | 4.0% |
| Q4 2023 | 0.88 | 0.82 | -4.0% |
| Q3 2023 | 1.45 | 1.69 | 7.0% |
Analyst Sentiment:
Understanding market sentiment and expectations within the industry is crucial for investors. The consensus rating for Granite Construction is currently “Sell”, based on 2 analyst ratings. The average one-year price target of $65.5 implies a potential 20.63% downside.
Peer Analysis:
To gain further insights into Granite Construction’s market position and relative performance, let’s analyze the analyst ratings and price targets of its peers: Primoris Services, Construction Partners, and Arcosa.
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Primoris Services:
Consensus outlook is “Buy”, with an average 1-year price target of $73.0, indicating a potential 11.55% downside.*
Construction Partners:
Consensus outlook is “Buy”, with an average 1-year price target of $71.5, indicating a potential 13.36% downside.*
Arcosa:
Consensus outlook is “Outperform”, with an average 1-year price target of $102.33, indicating a potential 23.99% upside.Key Takeaways from Peer Analysis:
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Revenue Growth:
Granite Construction ranks at the bottom for revenue growth among its peers.*
Gross Profit:
Granite Construction is in the middle for gross profit.*
Return on Equity:
Granite Construction ranks at the bottom for return on equity compared to its peers.Granite Construction: A Closer Look at the Financials:
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Market Capitalization:
Granite Construction’s market capitalization is currently below industry benchmarks, potentially influenced by factors like growth expectations or operational capacity.*
Revenue Growth:
The company has demonstrated strong revenue growth over the past 3 months. As of June 30th, 2024, Granite Construction achieved a revenue growth rate of approximately 20.47%, exceeding the average growth rate within the Industrials sector.*
Net Margin:
The company’s net margin is below industry standards, suggesting potential difficulties in achieving strong profitability. A net margin of 3.69% may indicate challenges in effective cost control.*
Return on Equity (ROE):
Granite Construction’s ROE surpasses industry averages, indicating effective use of equity capital and strong financial performance. A ROE of 4.26% demonstrates the company’s ability to generate returns on its shareholder investments.*
Return on Assets (ROA):
The company’s ROA is below industry averages, suggesting potential challenges in efficiently utilizing assets. An ROA of 1.46% may point to difficulties in maximizing financial returns from its assets.*
Debt Management:
Granite Construction’s debt-to-equity ratio is significantly higher than the industry average, reaching 0.88. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.Granite Construction: Company Overview:
Granite Construction Inc. is a leading construction and development company specializing in infrastructure projects for both public and private clients across the United States. The company focuses on heavy civil infrastructure projects, including roads, highways, transit facilities, airports, bridges, and other essential infrastructure. Additionally, Granite Construction provides site preparation and infrastructure services for residential developments, energy projects, and other facilities. The majority of its revenue is generated from the Construction operating segment, with the remaining portion derived from the Materials segment.
Stay Informed:
To stay updated on all earnings releases for Granite Construction, visit our earnings calendar on our site. This will provide you with the latest information and insights into the company’s performance.
