Granite Construction (NYSE:GVA) Issues Earnings Results, Beats Expectations By $0.16 EPS

Key Points

• Granite Construction reported earnings of $1.93 per share, exceeding analyst expectations of $1.77 by $0.16, while revenue for the quarter was $1.13 billion, slightly below expectations of $1.16 billion.
• The company's stock rose 7.9% following the earnings announcement, with shares opening at $100.67.
• Granite Construction declared a quarterly dividend of $0.13 per share, representing an annualized dividend of $0.52 with a yield of 0.5%.

Granite Construction (NYSE:GVA - Get Free Report) released its earnings results on Thursday. The construction company reported $1.93 EPS for the quarter, beating analysts' consensus estimates of $1.77 by $0.16, Zacks reports. The business had revenue of $1.13 billion for the quarter, compared to analysts' expectations of $1.16 billion. Granite Construction had a return on equity of 21.40% and a net margin of 3.07%. The firm's revenue was up 4.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.73 earnings per share. Granite Construction updated its FY 2025 guidance to EPS.

Granite Construction Stock Up 7.9%

Shares of NYSE GVA opened at $100.67 on Friday. The company's 50-day simple moving average is $92.43 and its 200-day simple moving average is $85.34. The firm has a market cap of $4.40 billion, a price-to-earnings ratio of 41.95 and a beta of 1.39. The company has a quick ratio of 1.44, a current ratio of 1.57 and a debt-to-equity ratio of 0.71. Granite Construction has a 52-week low of $67.83 and a 52-week high of $105.20.

Granite Construction Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Monday, June 30th were given a dividend of $0.13 per share. The ex-dividend date was Monday, June 30th. This represents a $0.52 dividend on an annualized basis and a yield of 0.5%. Granite Construction's dividend payout ratio is currently 21.67%.

Analyst Upgrades and Downgrades

Separately, The Goldman Sachs Group upped their price target on Granite Construction from $69.00 to $76.00 and gave the company a "sell" rating in a report on Monday, May 5th.

Insider Activity

In related news, SVP Brian R. Dowd sold 2,025 shares of the stock in a transaction that occurred on Wednesday, May 28th. The shares were sold at an average price of $91.76, for a total transaction of $185,814.00. Following the completion of the transaction, the senior vice president owned 18,819 shares of the company's stock, valued at approximately $1,726,831.44. This trade represents a 9.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.81% of the stock is owned by company insiders.

Hedge Funds Weigh In On Granite Construction

Hedge funds have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Granite Construction by 21.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 168,859 shares of the construction company's stock valued at $12,732,000 after purchasing an additional 29,428 shares in the last quarter. AQR Capital Management LLC increased its holdings in Granite Construction by 73.2% during the 1st quarter. AQR Capital Management LLC now owns 21,379 shares of the construction company's stock worth $1,612,000 after purchasing an additional 9,038 shares during the last quarter. Finally, United Services Automobile Association acquired a new stake in Granite Construction during the first quarter valued at approximately $207,000.

About Granite Construction

Granite Construction Incorporated operates as an infrastructure contractor in the United States. It operates through two segments: Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies; and construction of various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar storage, and power related projects.

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