Why Is Construction & Engineering Company Shimmick Stock Rocketing Premarket On Tuesday?

Shimmick Corporation SHIM shares are surging premarket on Tuesday. On Monday, the company secured a $45.4 million contract to perform seismic retrofitting and upgrades on the Murray Street Bridge at Santa Cruz Small Craft Harbor.

The project aims to enhance seismic resilience and improve accessibility for cyclists and pedestrians. It will involve installing new piles, extended pile caps, columns, and bent caps.

The company stated that the upgrades will include wider bike lanes, a dedicated sidewalk on the south side, and the replacement of concrete barriers with see-through rails to enhance views of the harbor and ocean while ensuring safety.

Ural Yal, CEO of Shimmick, said, “This project exemplifies Shimmick’s commitment to delivering critical infrastructure that improves both public safety and connectivity and builds on our legacy of infrastructure improvements that serve communities for generations. We are looking forward to partnering with the City of Santa Cruz to complete this important project.”

Last month, Shimmick reported a third-quarter 2024 adjusted EPS of $0.72, down from $1.67 a year ago, and sales of $166.0 million, beating the $120.05 million estimate.

As of September 27, 2024, the company had a backlog of over $834 million.

Price Action: SHIM shares are up 35.4% at $3.79 premarket at the last check Tuesday.

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