Tutor Perini Corporation
) has signed a contract with the San Francisco Municipal
Transportation Agency (SFMTA) worth around $840 million for the
Third Street Light Rail Program Phase 2. Tutor Perini has also
received notice to proceed (NTP) for the project.
The Third Street Light Rail Project is the first part of a
two-phase construction project to expand the Muni Metro system in
San Francisco, Calif. The second phase, which is known as The
Central Subway, involves the underground extension of the rail
The work under this contract includes the construction of three
underground subway stations at Chinatown, Union Square/Market
Street and Yerba Buena/Moscone Center. The project also entails
the construction of a surface station at 4th and Brannan Streets.
In addition, Tutor Perini is also required to build the systems
and tracks in the stations.
Tutor Perini has started the initial work on the venture, which
is expected to complete in the second quarter of 2018. The
company expects to book the value of the contract into the
backlog during the second quarter of 2013.
Sylmar, Calif.-based Tutor Perini reported first-quarter 2013
earnings of 31 cents per share, up almost four-fold from the
year-ago earnings of 8 cents per share. It also surpassed the
Zacks Consensus Estimate of 23 cents. The results were driven by
increased revenues on the back of increased activity as well as
reduction in general and administrative expenses.
Tutor Perini recorded a backlog of $5.5 billion as of Mar 31,
2013, compared with $5.6 billion as of Dec 31, 2012. The decrease
was mainly due to a decline in the Building segment backlog.
However, this was partly offset by an increase in backlog in the
Civil, Specialty Contractors and Management Services segments.
However, Tutor Perini is expecting long-term backlog growth
backed by large civil and non-residential building projects. It
also expects earnings in the range of $1.65 to $1.90 per share
and revenues between $4.5 billion and $5 billion for 2013.
Tutor Perini is a leading civil and building construction company
offering diversified general contracting and design-build
services to private clients and public agencies, globally.
Tutor Perini currently retains a Zacks Rank #2 (Buy).
Other stocks to consider in the same industry with a favorable
Zacks Rank are
Dycom Industries Inc.
Orion Marine Group, Inc
Primoris Services Corp
). While Dycom Industries holds a Zacks Rank #1 (Strong Buy),
Orion Marine and Primoris Services carry a Zacks Rank #2
DYCOM INDS (DY): Free Stock Analysis Report
ORION MARINE GP (ORN): Free Stock Analysis
PRIMORIS SERVCS (PRIM): Free Stock Analysis
TUTOR PERINI CP (TPC): Free Stock Analysis
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