Yahoo Finance Granite (GVA) to Rehabilitate Pavement Along SR41 for $15M
Granite Construction Incorporated GVA received an approximately $15 million contract to rehabilitate pavement along State Route 41 (SR41), located near Stratford, from the California Department of Transportation (Caltrans).
Per the deal, Granite will remove and replace failed pavement areas at SR41 with 49,400 tons of Hot Mix Asphalt (HMA) and then place a surface course of 19,100 tons of Rubberized HMA or RHMA. The RHMA will be supplied by GVA’s Coalinga plant in Fresno County, CA.
The scope of work also includes lengthening and rehabilitation of culverts along the route, upgrading of guard railing and barriers, and replacement of failing bridge approach pavement with concrete approach slabs.
Project value has been included in GVA’s second-quarter Committed and Awarded Projects (CAP). The work is expected to begin in July 2024 and is likely to be completed in July 2025.
Solid CAP Synergies
The consistent award wins have been driving GVA’s performance. The company is focused on growing a high-quality CAP portfolio on the back of a positive public funding environment and resilient private market.
The performance of Granite’s operating segments showcased strong market growth in first-quarter 2024, which benefited from a robust public funding environment. CAP increased to $5.5 billion in the first quarter, implying a year-over-year increase from $5.1 billion as of Mar 31, 2023. Both public and private markets continued to be strong. GVA expects substantial opportunities to build CAP in the second quarter and the rest of 2024.
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Shares of GVA soared 56% in the past year compared with the Zacks Building Products - Heavy Construction industry’s 60.2% growth. Although shares of the company have underperformed the industry, earnings estimates for 2024 have moved up to $4.76 from $4.29 in the past 60 days, indicating 51.6% year-over-year growth.
Zacks Rank & Other Key Picks
Granite currently sports a Zacks Rank #1 (Strong Buy).
Here are some other top-ranked stocks from the Zacks Construction sector:
Tutor Perini Corporation TPC currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TPC’s 2024 sales and earnings per share (EPS) indicates growth of 18% and 133.3%, respectively, from the previous year.
EMCOR Group, Inc. EME presently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 32%, on average.
The Zacks Consensus Estimate for EME’s 2024 EPS indicates an improvement of 20.7% from the prior-year levels.
Dycom Industries, Inc. DY sports a Zacks Rank #1 at present. It delivered a trailing four-quarter earnings surprise of 30.2%, on average.
The Zacks Consensus Estimate for DY’s fiscal 2025 sales and EPS indicates a rise of 9.3% and 5.6%, respectively, year over year.
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Tutor Perini Corporation (TPC) : Free Stock Analysis Report
Granite Construction Incorporated (GVA) : Free Stock Analysis Report
