Granite Construction Earnings: Here’s Why the Stock is Up Now

Granite Construction Incorporated (NYSE:GVA) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.33%.

Granite Construction Incorporated Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 40% to $0.07 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Rose 1.96% to $550.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Granite Construction Incorporated reported adjusted EPS income of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.32. It missed the average revenue estimate of $659.68 million.

Quoting Management: “Granite continues to focus on driving results through execution of our strategic initiatives both to grow and to diversify the business,” said James H. Roberts, Granite president and chief executive officer.
“The Large Projects business continues to perform as expected. Our record backlog includes the start-up of several new projects in the second half of 2013, which will recognize profit in 2014,” Roberts said. “While our vertically integrated business still faces market-driven, competitive headwinds, we are benefitting from synergies with our acquisition of Kenny.”

Key Stats (on next page)…

Revenue increased 45.29% from $378.7 million in the previous quarter. EPS increased to $0.07 in the quarter versus EPS of $-0.57 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.99 to a profit $0.92. For the current year, the average estimate has moved down from a profit of $1.72 to a profit of $1.07 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]