Granite Construction Incorporated
) rose nearly 2% on Sep 18 and further moved up around 1% the
next day as it received a $26 million highway project for the
city of Bakersfield in Central California. The construction work
is in progress and is expected to be completed in the summer of
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The project includes widening of State Route 178 (SR-178) by
converting the existing two-lane roadway to a four-lane
expressway. Auxiliary lanes will be added to both eastbound and
westbound lanes of SR-178 between Fairfax Road and Morning Drive.
Granite is also required to build a six-lane overpass, concrete
structures, roadway excavation, storm drains and utility
culverts. Granite expects to book the project into backlog during
the third quarter of 2013.
Granite, which belongs to the building and heavy construction
industry along with
Chicago Bridge & Iron
China Railway Construction Corp.
), reported earnings of $2.7 million or 7 cents per share in the
second quarter of 2013 compared with $1.9 million or 5 cents a
share in the prior-year quarter. The results lagged the Zacks
Consensus Estimate of 32 cents.
Granite's net sales improved 2% year over year to $550.2 million
buoyed by the synergies of the Kenny acquisition. The results
however missed the Zacks Consensus Estimate of $652 million.
Total contract backlog of the company as of Jun 30, 2013,
improved 43% year over year to $2.79 billion.
For full-year 2013, Granite anticipates at least double digit
rise in its top line. Granite reaffirmed construction segment
revenues forecast in the range of $1.25-$1.4 billion for 2013.
Watsonville, CA-based Granite is one of the largest
infrastructure contractors and construction material producers.
Granite's project teams represent some of the best in the
industry serving owners in the transportation, power, federal,
tunneling, underground, and industrial, mining and water
resources markets, which serve both public and private-sector
Granite currently retains a short-term Zacks Rank #3 (Hold).
Hopewell Highway Infrastructure Ltd
) also belongs to the same industry and retains a Zacks Rank #2