Granite Construction Incorporated
) rose nearly 2% after the company announced on Mar 6 that it has
been awarded a $36 million road and bridge project by the Alaska
Department of Transportation. Construction work is scheduled to
begin in Apr 2014 and the project is slated to be completed in
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The contract entails construction of a new East-West corridor by
extending Dowling Road within the Anchorage city limits. Granite
Construction is also required to build a new bridge over the
Alaska Railroad lines and Arctic Avenue.
The project also includes improvement in soil stabilization,
retaining walls, 800,000 tons of imported gravel borrow, 230,000
cubic yards of excavation and utility improvements. Granite
Construction is also required to build two new signalized
intersections, multi-use pathways and landscaping amenities.
Granite Construction expects to book both the projects into
backlog during the first quarter of 2014.
Last month, the company reported adjusted fourth-quarter 2013
earnings of 2 cents per share, surpassing the Zacks Consensus
Estimate of a loss per share of 3 cents. Granite Construction's
net sales increased 18% year over year to $598 million but missed
the Zacks Consensus Estimate of $623 million.
Total contract backlog increased to $2.5 billion as of Dec 31,
2013, compared with $1.7 billion as of Dec 31, 2012. The rise
reflects the addition of the Tappan Zee Bridge project in New
York, the IH-35E highway reconstruction project in Texas,
I-40/440 project in North Carolina as well as an overall increase
in the Construction segment backlog.
Granite Construction's backlog, project funding and financing
have improved. In addition, private constructions are showing
signs of growth as well. In 2014, the company expects to bid on
more than $13 billion of large projects. The company foresees an
additional $20 billion in large projects beyond 2014.
Watsonville, Calif.-based Granite Construction is one of the
major infrastructure contractors and construction material
producers. The company's project team is the best in the
industry, serving the transportation, power, federal, tunneling,
underground, and industrial, mining and water resources markets,
which serve both public and private-sector clients.
Granite Construction currently has a short-term Zacks Rank #5
Some better-ranked stocks in the same industry include
CaesarStone Sdot-Yam Ltd.
Primoris Services Corporation
). While CaesarStone sports a Zacks Rank #1 (Strong Buy), MasTec
and Primoris Services carry a Zacks Rank #2 (Buy).