What To Expect From Granite Construction's (GVA) Q2 Earnings

Construction and construction materials company Granite Construction (NYSE:GVA) will be reporting results this Thursday before the bell. Here’s what to expect.

Granite Construction missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $699.5 million, up 4.1% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Is Granite Construction a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Granite Construction’s revenue to grow 7.3% year on year to $1.16 billion, slowing from the 20.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.70 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Granite Construction has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Granite Construction’s peers in the construction and maintenance services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Primoris delivered year-on-year revenue growth of 20.9%, beating analysts’ expectations by 12.1%, and Comfort Systems reported revenues up 20.1%, topping estimates by 10.6%. Primoris traded up 16.7% following the results while Comfort Systems was also up 22.3%.

Read our full analysis of Primoris’s results here and Comfort Systems’s results here.

There has been positive sentiment among investors in the construction and maintenance services segment, with share prices up 2.1% on average over the last month. Granite Construction’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $110.33 (compared to the current share price of $94.50).

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