Earnings Outlook For Granite Construction

Granite Construction GVA will release its quarterly earnings report on Thursday, 2024-10-31. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Granite Construction to report an earnings per share (EPS) of $2.36.

The announcement from Granite Construction is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings History Snapshot

Last quarter the company beat EPS by $0.34, which was followed by a 0.19% increase in the share price the next day.

Here's a look at Granite Construction's past performance and the resulting price change:

Analyst Observations about Granite Construction

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Granite Construction.

The consensus rating for Granite Construction is Sell, derived from 2 analyst ratings. An average one-year price target of $65.5 implies a potential 20.63% downside.

Analyzing Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Primoris Services, Construction Partners and Arcosa, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Buy trajectory for Primoris Services, with an average 1-year price target of $73.0, indicating a potential 11.55% downside.
• The consensus outlook from analysts is an Buy trajectory for Construction Partners, with an average 1-year price target of $71.5, indicating a potential 13.36% downside.
• Arcosa is maintaining an Outperform status according to analysts, with an average 1-year price target of $102.33, indicating a potential 23.99% upside.

Analysis Summary for Peers

Within the peer analysis summary, vital metrics for Primoris Services, Construction Partners and Arcosa are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Granite Construction ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Granite Construction is at the bottom compared to its peers.

All You Need to Know About Granite Construction

Granite Construction Inc engages in the construction and development of various infrastructure projects on behalf of public and private clients in the United States. It focuses on heavy civil infrastructure projects, including roads, highways, transit facilities, airports, bridges and other infrastructure projects. In addition, the company performs site preparation and infrastructure services for residential development, energy development, and other facilities. The majority of revenue is derived from the company's Construction operating segment, with the remainder derived from its Materials segment.

Granite Construction: Delving into Financials

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Granite Construction's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 20.47%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Granite Construction's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 3.69%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Granite Construction's ROE stands out, surpassing industry averages. With an impressive ROE of 4.26%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Granite Construction's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.46%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Granite Construction's debt-to-equity ratio stands notably higher than the industry average, reaching 0.88. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Granite Construction visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.