Group 1: Company Performance and Rankings - Tutor Perini Corporation (TPC) currently holds a Zacks Rank 1, indicating strong performance potential [2] - Dycom Industries, Inc. (DY) also has a Zacks Rank 1 and has delivered a trailing four-quarter earnings surprise of 30.2% on average [3] - EMCOR Group, Inc. (EME) boasts a Zacks Rank 1 with a trailing four-quarter earnings surprise of 32% on average [6] - Granite Construction Incorporated (GVA) has received a Zacks Rank 1 (Strong Buy) [9] Group 2: Recent Contracts and Projects - Granite Construction has secured a contract worth approximately $15 million to rehabilitate pavement along State Route 41 (SR41) from the California Department of Transportation [7] - The project includes removing and replacing failed pavement areas at SR41 with 49,400 tons of Hot Mix Asphalt (HMA) and placing a surface course of 19,100 tons of Rubberized HMA (RHMA) [14] - The work is expected to commence in July 2024 and be completed by July 2025 [10] Group 3: Financial Performance and Estimates - GVA's shares have increased by 56% over the past year, while the Zacks Building Products - Heavy Construction industry has grown by 60.2% [11] - Earnings estimates for GVA for 2024 have risen to $4.76 from $4.29 in the past 60 days, indicating a year-over-year growth of 51.6% [11] - 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 [12] - 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 [13] - The Zacks Consensus Estimate for EME's 2024 EPS indicates an improvement of 20.7% from the prior-year levels [17] Group 4: Market Environment and Opportunities - GVA's performance is driven by consistent award wins and a focus on growing a high-quality Committed and Awarded Projects (CAP) portfolio, supported by a positive public funding environment and resilient private market [8] - GVA's CAP increased to $5.5 billion in the first quarter of 2024, up from $5.1 billion as of March 31, 2023, indicating strong market growth [15] - The company expects substantial opportunities to build CAP in the second quarter and the remainder of 2024 [15]

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Granite Construction is currently sporting a Zacks Rank of #1 (Strong Buy). Armstrong World Industries (AWI) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 1 ...

Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Is Granite Construction (GVA) one of those stocks right now? A quick glance at the company's yearto-date performance in comparison to the rest of the Construction sector should help us answer this question. Granite Construction is a member of our Construction group, which includes 94 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank gauges the st ...

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Granite Construction (GVA) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price ch ...

A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap ...

Granite Construction Incorporated (GVA) is all set to rehabilitate pavement along Highway 162 in Mendocino County with a $36 million contract received from the California Department of Transportation (Caltrans). Per the deal, Granite will furnish and place 150,000 tons of conventional and rubberized hot mix asphalt to rebuild the structural section of the roadway. This will improve 25 miles of roadway that connect to the Covelo- Round Valley area. The rubberized surface course will use recycled tires and pr ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...

UNITED STATES Table of Contents x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 1-12911 GRANITE CONSTRUCTION INCORPORATED State of Incorporation: I.R.S. Employer Identification Number: Delaware 77-0239383 SECURITIES AND EXCHANGE COMMISSION Washingt ...

[First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) [Overall Performance Summary](index=1&type=section&id=Overall%20Performance%20Summary) Granite Construction reported a 20% revenue increase and a significant turnaround in operating cash flow in Q1 2024 Net Loss and EPS Attributable to Granite | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Loss Attributable to Granite | $(31) million | $(23) million | | Diluted EPS | $(0.70) | $(0.53) | | Adjusted Net Loss Attributable to Granite | $(9) million | $(14) million | | Adjusted Diluted EPS | $(0.21) | $(0.33) | Key Financial Metrics | Metric | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | | Revenue | $672 million | +20% | | Operating Cash Flow | $24 million | +$101 million | | Committed and Awarded Projects (CAP) | $5.5 billion | +$395 million | - CEO Kyle Larkin highlighted a **strong start** to 2024, building on momentum from 2023 with **significant revenue growth** and **improved operating cash flow** The company realigned its operational leadership around the construction and materials segments to better leverage expertise and drive growth[4](index=4&type=chunk) - Selling, general, and administrative (SG&A) expenses increased by **$15 million** year-over-year, primarily due to **$7 million** in additional stock-based compensation and **$5 million** from acquired businesses SG&A as a percentage of revenue remained flat at **13.1%**[7](index=7&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) [Construction Segment](index=2&type=section&id=Construction%20Segment) Construction segment revenue grew 18.2% to $595.2 million, with gross profit up 54.8% and robust CAP at $5.5 billion Construction Segment Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $595.2 million | $503.4 million | +18.2% | | Gross Profit | $56.8 million | $36.7 million | +54.8% | | Gross Profit Margin | 9.5% | 7.3% | +2.2 percentage points | - Revenue growth was led by operations in California, Utah, and the Midwest, benefiting from better weather in 2024 and a higher backlog (CAP) Acquired businesses contributed **$6 million** to revenue[8](index=8&type=chunk) - The increase in gross profit was attributed to higher revenue and a decrease in negative revisions in estimates However, this was partially offset by **$5 million** in gross losses from acquired businesses, which included **$3 million** in purchase accounting-related depreciation and amortization[8](index=8&type=chunk) - Committed and Awarded Projects (CAP) increased by **$395 million** year-over-year to **$5.5 billion**, remaining flat sequentially The company sees substantial opportunities to build CAP throughout 2024 in strong public and private markets[9](index=9&type=chunk) [Materials Segment](index=2&type=section&id=Materials%20Segment) Materials segment revenue increased 36.0% to $77.1 million, with gross loss improving to $2.5 million Materials Segment Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $77.1 million | $56.7 million | +36.0% | | Gross Profit (Loss) | $(2.5) million | $(4.3) million | +41.5% | | Gross Profit Margin | (3.3)% | (7.7)% | +4.4 percentage points | - Revenue growth was driven by **$10 million** from acquired businesses, higher asphalt and aggregate sales prices, and increased volumes from more favorable weather conditions in 2024[10](index=10&type=chunk) - Gross profit improved due to higher sales prices but was partially offset by a **$3 million** gross loss from acquired businesses, of which **$2 million** was related to purchase accounting step-up depreciation and amortization[10](index=10&type=chunk) [2024 Outlook](index=3&type=section&id=2024%20Outlook) [Fiscal Year 2024 Guidance](index=3&type=section&id=Fiscal%20Year%202024%20Guidance) Granite updated its 2024 guidance, raising adjusted EBITDA margin to 9.5%-11.5% due to stock-based compensation exclusion - The company increased its adjusted EBITDA margin guidance for 2024 to a range of **9.5% to 11.5%**, up from **9.0% to 11.0%**, to account for the exclusion of stock-based compensation expense in the calculation[11](index=11&type=chunk) Fiscal Year 2024 Guidance | Metric | 2024 Guidance | | :--- | :--- | | Revenue | $3.8 billion to $4.0 billion | | Adjusted EBITDA margin | 9.5% to 11.5% | | SG&A expense (% of revenue) | 7.5% to 8.0% | | Effective tax rate (for adjusted net income) | Mid-20s | | Capital expenditures | $130 million to $150 million | [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $2.60 billion as of March 31, 2024, driven by lower cash and receivables Condensed Consolidated Balance Sheets | Balance Sheet Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $321.8 million | $417.7 million | | Total current assets | $1,418.1 million | $1,643.5 million | | Total assets | $2,595.0 million | $2,813.5 million | | Total current liabilities | $936.4 million | $1,029.9 million | | Total liabilities | $1,590.4 million | $1,786.6 million | | Total equity | $1,004.6 million | $1,027.0 million | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 revenue increased to $672.3 million, but net loss widened to $31.0 million due to higher costs Condensed Consolidated Statements of Operations | Income Statement Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenue | $672.3 million | $560.1 million | | Gross Profit | $54.3 million | $32.4 million | | Operating Loss | $(43.3) million | $(43.2) million | | Net Loss Attributable to Granite | $(31.0) million | $(23.0) million | | Diluted Loss Per Share | $(0.70) | $(0.53) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly improved to $24.1 million in Q1 2024, reducing net cash decrease Condensed Consolidated Statements of Cash Flows | Cash Flow Item (Three Months Ended March 31) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $24.1 million | $(76.7) million | | Net cash used in investing activities | $(10.8) million | $(24.3) million | | Net cash provided by (used in) financing activities | $(109.2) million | $6.8 million | | Net decrease in cash | $(95.9) million | $(94.2) million | | Cash at end of period | $321.8 million | $199.8 million | [Non-GAAP Financial Measures Reconciliation](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [EBITDA and Adjusted EBITDA Reconciliation](index=10&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA significantly improved to $14.1 million in Q1 2024, reflecting a revised calculation excluding stock-based compensation EBITDA and Adjusted EBITDA Reconciliation | Reconciliation Item (Three Months Ended March 31) | 2024 | 2023 | | :--- | :--- | :--- | | Net loss attributable to Granite | $(31.0) million | $(23.0) million | | EBITDA | $(9.9) million | $(13.5) million | | **Adjusted EBITDA** | **$14.1 million** | **$(4.1) million** | | Adjusted EBITDA margin | 2.1% | (0.7)% | - In the first quarter of 2024, the company revised its adjusted EBITDA calculation to exclude the impact of stock-based compensation expense Prior period figures have been recast to conform to the new presentation[30](index=30&type=chunk) [Adjusted Net Income (Loss) Reconciliation](index=11&type=section&id=Adjusted%20Net%20Income%20(Loss)%20Reconciliation) Adjusted net loss improved to $9.2 million in Q1 2024, with adjusted diluted EPS at $(0.21) Adjusted Net Income (Loss) Reconciliation | Reconciliation Item (Three Months Ended March 31) | 2024 | 2023 | | :--- | :--- | :--- | | Net loss attributable to Granite | $(31.0) million | $(23.0) million | | After-tax adjusting items | $21.8 million | $8.8 million | | **Adjusted net loss attributable to Granite** | **$(9.2) million** | **$(14.3) million** | | Diluted net loss per share | $(0.70) | $(0.53) | | **Adjusted diluted loss per share** | **$(0.21)** | **$(0.33)** | - Similar to Adjusted EBITDA, the adjusted net income calculation was revised in Q1 2024 to exclude stock-based compensation expense, and prior period calculations were recast for comparability[32](index=32&type=chunk)