Shares of Granite Construction saw a significant boost after the company announced higher-than-expected third-quarter revenue and a growing book of awarded projects.
Strong Financial Performance
Granite Construction, based in Watsonville, California, reported sales of $1.12 billion for the third quarter, representing an 11% increase from the previous year. This figure outperformed analysts’ estimates of $1.08 billion. Adjusted earnings per share were reported at $1.69, surpassing the expected $1.45 per share.
Expanding Project Pipeline
Granite Construction’s book of committed and awarded projects has reached an impressive $5.6 billion, demonstrating a substantial increase of approximately $1.5 billion compared to the previous year. The company also anticipates further growth in the current quarter, with more opportunities on the horizon.
Positive Outlook and Influencing Factors
CEO Kyle Larkin credits federal spending initiatives, along with the Infrastructure Investment and Jobs Act, for boosting activity in the construction industry. These developments have created a favorable environment for Granite Construction’s business.
Overall, the company’s strong financial performance and growing project pipeline have instilled confidence in investors, resulting in a 17% surge in stock price during Tuesday’s trading session. So far this year, shares have risen by an impressive 14%.