GRANITE CONSTRUCTION Reports FY2022 Q4 Earnings Results on December 31, 2022.

Earnings Overview

GRANITE CONSTRUCTION ($NYSE:GVA) reported their Q4 earnings results for Fiscal Year 2022 on February 16 2023; for the period ending December 31 2022, total revenue came to USD 22.1 million, representing a 266.9% increase year over year. Net income for the quarter was USD 789.2 million, up 15.5% from the same period in 2021.

Transcripts Simplified

Granite Construction reported fourth quarter adjusted net income of $25 million and adjusted diluted earnings per share of $0.56. For the year, adjusted net income improved to $104 million and adjusted diluted earnings per share improved to $2.31. Comparable revenue in the Construction segment declined by $100 million year-over-year, primarily due to a $206 million decrease in the Central Group as ORP projects approach completion.

The Central Group’s revenue decline was partially offset by a $118 million increase in the Mountain Group, driven by higher beginning CAP levels and stronger market conditions. Comparable annual non-ORP gross profit margin improved to 13.7% in 2022, up from 12.7% in 2021.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Granite Construction. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Granite Construction. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Granite Construction. More…

Key Ratios Snapshot

Some of the financial key ratios for Granite Construction are shown below. More…

Market Price

On December 31, 2022, GRANITE CONSTRUCTION reported its financial results for the fourth quarter of the FY2022. GRANITE CONSTRUCTION stock opened at $41.2 and closed at $43.2, marking an increase of 4.7% from the previous closing price of $41.2. The strong stock performance can be attributed to GRANITE CONSTRUCTION’s continued investment in infrastructure, its solid reputation in the industry and its successful bid for a number of large scale projects. It also reported an increase in its backlog balance to $2 billion, showcasing the long term potential of the business.

GRANITE CONSTRUCTION’s management team has voiced its confidence in the company’s future prospects, stating that they remain committed to making long-term investments in infrastructure and remain optimistic about their ability to secure more large-scale projects in FY 2023. Their results certainly seem to back up their claims and investors are hopeful that this strong performance can continue throughout the next fiscal year. Live Quote…

Analysis

At GoodWhale, we analyze GRANITE CONSTRUCTION‘s financials on an ongoing basis. With data-driven analysis, we assess the riskiness of GRANITE CONSTRUCTION’s investments. After taking into account the financial and business aspects of its investments, our analysis has given GRANITE CONSTRUCTION a medium risk rating. Though we see potential in GRANITE CONSTRUCTION’s investments, our analysis also uncovered one risk warning in its income sheet. We highly recommend that our users invest in GRANITE CONSTRUCTION only after taking this warning into consideration. To access more detailed information about this warning, you can register with us at GoodWhale to check it out. More…

Peers

The company has a long history of success and has completed many high-profile projects.

However, Granite Construction Inc is not the only construction company in the market and faces stiff competition from other companies such as IL&FS Engineering and Construction Co Ltd, PBA Infrastructure Ltd, and MBL Infrastructures Ltd.

– IL&FS Engineering and Construction Co Ltd ($BSE:532907)

IL&FS Engineering and Construction Co Ltd is an engineering and construction company that operates in the infrastructure sector in India. The company has a market cap of 2 billion as of 2022 and a return on equity of 7.54%. The company provides engineering, procurement, and construction services for a variety of infrastructure projects, including roads, bridges, tunnels, railways, and power plants.

– PBA Infrastructure Ltd ($BSE:532676)

PBA Infrastructure Ltd is an Australian engineering and infrastructure company. They have a market cap of 164.44M as of 2022 and a Return on Equity of 1.6%. PBA Infrastructure Ltd is involved in the design, construction, financing and operation of social and economic infrastructure assets.

– MBL Infrastructures Ltd ($BSE:533152)

MBL Infrastructures Ltd is an India-based engineering,procurement and construction (EPC) company. The Company is engaged in the business of civil construction, which includes roads, bridges, flyovers, buildings and irrigation. It also has a presence in the power sector. The Company’s segments include Construction and Power. Its Construction segment includes civil construction and other infrastructure development works. Its Power segment includes generation, transmission and distribution of power. The Company’s projects include National Highways, State Highways, Major District Roads, Rural Roads, City Roads, Bridges, Flyovers, Buildings, Water Supply and Sewerage Treatment Plants and Irrigation.

Summary

GRANITE CONSTRUCTION reported strong earnings results for their fourth quarter of fiscal 2022, with total revenue increasing by 266.9% year-over-year and net income increasing by 15.5%. Stock price reacted positively to the news and moved upwards on the same day. Investors should take note of GRANITE CONSTRUCTION’s impressive financial performance and consider the company as a potential long-term investment. The company’s ability to meet earnings expectations, coupled with its strong growth going forward, make GRANITE CONSTRUCTION an attractive choice for investors.