Latest news with #GraniteConstructionIncorporated
Business Wire
07-08-2025
- Business
- Business Wire
Granite Reports Second Quarter 2025 Results
WATSONVILLE, Calif.--(BUSINESS WIRE)--Granite Construction Incorporated (NYSE: GVA) today announced results for the quarter ended June 30, 2025. Second Quarter 2025 Results Net income attributable to Granite totaled $72 million, or $1.42 per diluted share, compared to net income attributable to Granite of $37 million, or $0.76 per diluted share, for the same period in the prior year. Adjusted net income attributable to Granite (2) totaled $86 million, or $1.93 per diluted share, compared to adjusted net income attributable to Granite (2) of $77 million, or $1.73 per diluted share, for the same period in the prior year. Revenue increased $43 million to $1.13 billion compared to $1.08 billion for the same period in the prior year. Gross profit increased $34 million to $199 million compared to $165 million for the same period in the prior year. Selling, general, and administrative ('SG&A') expenses increased $16 million to $86 million, or 7.6% of revenue, compared to $70 million, or 6.5% of revenue, for the same period in the prior year. The increase in SG&A expenses was primarily due to additional salaries and related expenses, coupled with a greater percentage of annual incentive compensation expense compared to the same period in the prior year. Adjusted EBITDA (2) increased $22 million to $152 million compared to $130 million for the same period in the prior year. "In the second quarter, we capitalized on the strong bidding opportunities we are seeing in both the public and private markets and increased our CAP to $6.1 billion, which is a new record,' said Kyle Larkin, Granite President and Chief Executive Officer. 'I am pleased with each of our segments' execution in the quarter, and we believe our continued focus on operational excellence should continue to produce margin expansion. We are also excited by the opportunities that come with the two acquisitions that we announced yesterday. The acquisition in the Southeast gives us a significant, high-quality aggregate supply on the Mississippi River and provides us with many opportunities to further leverage the supply network to grow our southeast platform. The acquisition in California strengthens our business in the central portion of the state with additional aggregates as we welcome a leading civil construction business into our portfolio. With our upsized credit facility and strong cash generation, I believe we will be able to continue to complete acquisitions to strengthen and expand our home markets in the upcoming quarters.' Six Months Ended June 30, 2025 Results Net income attributable to Granite totaled $38 million, or $0.84 per diluted share, compared to $6 million, or $0.13 per diluted share, for the same period in the prior year. Adjusted net income attributable to Granite (2) totaled $87 million, or $1.94 per diluted share, compared to $68 million, or $1.52 per diluted share, for the same period in the prior year. Revenue increased $71 million to $1.83 billion, compared to $1.75 billion for the same period in the prior year. Gross profit increased $64 million to $283 million, compared to $219 million for the same period in the prior year. SG&A expenses increased $44 million to $202 million, or 11.1% of revenue, compared to $158 million, or 9.0% of revenue, for the same period in the prior year. The increase in SG&A expenses was primarily due to additional stock-based compensation expenses and salaries and related expenses, coupled with a greater percentage of annual incentive compensation expense compared to the same period in the prior year. Adjusted EBITDA (2) increased $36 million to $180 million compared to $144 million for the same period in the prior year. Year-to-date operating cash flow of $5 million and positioned to achieve our target of 9% operating cash flow as a percent of revenue for the year. (1) CAP is comprised of revenue we expect to record in the future on executed contracts, including 100% of our consolidated joint venture contracts and our proportionate share of unconsolidated joint venture contracts, as well as the general construction portion of construction manager/general contractor, construction manager/at risk and progressive design build contracts to the extent contract execution and funding is probable. (2) Adjusted net income, adjusted diluted earnings per share, earnings before interest, taxes, depreciation, and amortization ('EBITDA'), EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures. Please refer to the description and reconciliation of non-GAAP measures in the attached tables. Expand Revenue increased year-over-year, driven primarily by the newly acquired Dickerson & Bowen business. Revenue in the legacy business was consistent year-over-year and is expected to accelerate in the second half of the year as work commences on projects included within our record CAP. Gross profit increased year-over-year as a result of improved project execution across our higher quality project portfolio and favorable claim settlements. CAP increased $324 million sequentially to $6.1 billion and increased $488 million year-over-year. The bidding pipeline continues to be robust across the company in both public and private markets. There are ample opportunities to build CAP over the remainder of 2025 and to drive organic growth in line with our expectations. (1) Materials segment cash gross profit and cash gross profit as a percent of revenue are non-GAAP measures. Please refer to the description and reconciliation of non-GAAP measures in the attached tables. Expand Revenue, gross profit and cash gross profit improved year-over-year primarily driven by higher aggregates and asphalt volumes and higher aggregate sales prices. Outlook With the acquisitions announced this week, we are updating our 2025 fiscal year guidance as noted below: Revenue in the range of $4.35 billion to $4.55 billion with revenue from the new acquisitions of approximately $150 million Adjusted EBITDA margin increased to a range of 11.25% to 12.25% SG&A expense unchanged at approximately 9.0% of revenue, inclusive of an estimated $40 million of stock-based compensation expense Effective tax rate for adjusted net income unchanged in the Mid-20s Capital expenditures unchanged with a range of $140 million to $160 million We do not provide a reconciliation of forward-looking adjusted EBITDA margin or the most directly comparable forward-looking GAAP measure of net income attributable to Granite because we cannot predict with a reasonable degree of certainty and without unreasonable efforts certain components or excluded items that are inherently uncertain and depend on various factors. For these reasons, we are unable to assess the potential significance of the unavailable information. 'Our updated guidance reflects the inclusion of the new acquisitions in our 2025 results for the remainder of the third quarter and fiscal year,' stated Staci Woolsey, Granite Executive Vice President and Chief Financial Officer. 'These acquisitions are in alignment with our capital allocation strategy to invest in high quality businesses that will strengthen and expand our home markets and be immediately accretive to adjusted EBITDA margin and cash flows. Our pro-forma leverage is well within our target and with our expanded credit facility, we are well positioned to act on M&A opportunities in the future.' Conference Call Granite will conduct a conference call today, August 7, 2025, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to discuss the results of the quarter ended June 30, 2025. The Company invites investors to listen to a live audio webcast of the investor conference call on its Investor Relations website, The investor conference call will also be available by calling 1-877-328-5503; international callers may dial 1-412-317-5472. An archive of the webcast will be available on Granite's Investor Relations website approximately one hour after the call. A replay will be available after the live call through August 14, 2025, by calling 1-877-344-7529, replay access code 6869375; international callers may dial 1-412-317-0088. About Granite Granite is America's Infrastructure Company™. Incorporated since 1922, Granite (NYSE:GVA) is one of the largest diversified vertically-integrated civil contractors and construction materials producers in the United States. Granite's Code of Conduct and strong Core Values guide the Company and its employees to uphold the highest ethical standards. Granite is an industry leader in safety and an award-winning firm in quality and sustainability. For more information, visit and connect with Granite on LinkedIn, X, Facebook, and Instagram. Forward-looking Statements Any statements contained in this news release that are not based on historical facts, including statements regarding future events, occurrences, opportunities, circumstances, activities, performance, growth, demand, strategic plans, shareholder value, outcomes, outlook, 2025 fiscal year guidance for revenue, including revenue from new acquisitions, adjusted EBITDA margin, SG&A expense, stock-based compensation expense, effective tax rate, and capital expenditures, the expectation that we will continue to produce margin expansion, opportunities resulting from the new acquisitions, the many opportunities to further leverage the newly acquired business' supply network to grow our Southeast platform, our ability to complete acquisitions in the upcoming quarters, target of 9% operating cash flow as a percent of revenue for the year, construction revenue is expected to accelerate in the second half of the year, ample opportunities to build CAP over the remainder of 2025 and drive organic growth in line with expectations, our pro forma leverage target, M&A opportunities in the future, our capital allocation strategy, CAP and results constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by words such as 'future,' 'outlook,' 'assumes,' 'believes,' 'expects,' 'estimates,' 'anticipates,' 'intends,' 'plans,' 'appears,' 'may,' 'will,' 'should,' 'could,' 'would,' 'continue,' "guidance" and the negatives thereof or other comparable terminology or by the context in which they are made. These forward-looking statements are based on management's current beliefs, assumptions and estimates. These expectations may or may not be realized. Some of these expectations may be based on beliefs, assumptions or estimates that may prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our business, financial condition, results of operations, cash flows and liquidity. Such risks and uncertainties include, but are not limited to, those described in greater detail in our filings with the Securities and Exchange Commission, particularly those described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Due to the inherent risks and uncertainties associated with our forward-looking statements, the reader is cautioned not to place undue reliance on them. The reader is also cautioned that the forward-looking statements contained herein speak only as of the date of this news release and, except as required by law; we undertake no obligation to revise or update any forward-looking statements for any reason. GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 1,125,964 $ 1,082,486 $ 1,825,511 $ 1,754,761 Cost of revenue 926,865 917,775 1,542,563 1,535,765 Gross profit 199,099 164,711 282,948 218,996 Selling, general and administrative expenses 85,887 70,052 201,798 158,045 Other costs, net 13,253 10,225 22,679 21,235 Gain on sales of property and equipment, net (3,606 ) (1,387 ) (5,343 ) (2,805 ) Operating income 103,565 85,821 63,814 42,521 Other (income) expense Loss on debt extinguishment — 27,824 — 27,824 Interest income (5,761 ) (3,600 ) (12,029 ) (10,302 ) Interest expense 7,927 5,337 15,684 13,420 Equity in income of affiliates, net (3,698 ) (4,557 ) (4,792 ) (8,527 ) Other (income) expense, net (2,462 ) 1,267 (2,525 ) (476 ) Total other (income) expense, net (3,994 ) 26,271 (3,662 ) 21,939 Income before income taxes 107,559 59,550 67,476 20,582 Provision for income taxes 27,214 20,693 15,458 11,167 Net income 80,345 38,857 52,018 9,415 Amount attributable to non-controlling interests (8,645 ) (1,962 ) (13,974 ) (3,503 ) Net income attributable to Granite Construction Incorporated $ 71,700 $ 36,895 $ 38,044 $ 5,912 Net income per share attributable to common shareholders: Diluted $ 1.42 $ 0.76 $ 0.84 $ 0.13 Weighted average shares outstanding: Basic 43,746 44,060 43,605 44,024 Diluted 52,755 52,727 52,616 44,593 Expand GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - in thousands) Six Months Ended June 30, 2025 2024 Operating activities: Net income $ 52,018 $ 9,415 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 65,368 58,468 Amortization related to long-term debt 2,163 2,334 Non-cash loss on debt extinguishment — 27,824 Gain on sales of property and equipment, net (5,343 ) (2,805 ) Stock-based compensation 34,632 15,084 Equity in net income from unconsolidated construction joint ventures (3,814 ) (752 ) Net income from affiliates (4,792 ) (8,527 ) Other non-cash adjustments (207 ) (348 ) Changes in assets and liabilities (134,587 ) (78,609 ) Net cash provided by operating activities $ 5,438 $ 22,084 Investing activities: Purchases of marketable securities (172,578 ) — Maturities of marketable securities 17,600 25,000 Purchases of property and equipment (61,022 ) (66,861 ) Proceeds from sales of property and equipment 8,346 4,229 Cash paid for purchase price adjustments on business acquisition — (13,183 ) Other investing activities 399 693 Net cash used in investing activities $ (207,255 ) $ (50,122 ) Financing activities: Proceeds from issuance of convertible notes — 373,750 Debt principal repayments (552 ) (309,808 ) Capped call transactions — (46,046 ) Debt issuance costs — (9,654 ) Cash dividends paid (11,338 ) (11,452 ) Repurchases of common stock (15,317 ) (21,144 ) Contributions from non-controlling partners — 17,000 Distributions to non-controlling partners (27,250 ) (16,372 ) Other financing activities, net (39 ) 847 Net cash used in financing activities $ (54,496 ) $ (22,879 ) Net decrease in cash and cash equivalents (256,313 ) (50,917 ) Cash and cash equivalents at beginning of period 578,330 417,663 Cash and cash equivalents at end of period $ 322,017 $ 366,746 Expand Non-GAAP Financial Information The tables below contain financial information calculated other than in accordance with U.S. generally accepted accounting principles ('GAAP'). Specifically, management believes that non-GAAP financial measures such as EBITDA and EBITDA margin are useful in evaluating operating performance and are regularly used by securities analysts, institutional investors and other interested parties, and that such supplemental measures facilitate comparisons between companies that have different capital and financing structures and/or tax rates. We are also providing adjusted EBITDA and adjusted EBITDA margin, non-GAAP measures, to indicate the impact of stock-based compensation expense, loss on debt extinguishment in 2024 and other costs, net, which include legal fees for the defense of a former company officer in his ongoing civil litigation with the Securities and Exchange Commission, reorganization costs, strategic acquisition and integration expenses and, in 2024, non-cash impairment charges. We provide adjusted income before income taxes, adjusted provision for income taxes, adjusted net income attributable to Granite, adjusted diluted weighted average shares of common stock and adjusted diluted earnings per share attributable to common shareholders, non-GAAP measures, to indicate the impact of the following: Other costs, net as described above; Transaction costs which include acquired intangible asset amortization expense and acquisition-related depreciation; Stock-based compensation expense; and Loss on debt extinguishment. We also provide materials segment cash gross profit and materials segment cash gross profit by product line and the related margins to exclude the impact of the segment's and product line's depreciation, depletion and amortization from the segment's and product line's gross profit. To better illustrate the operational performance generated by the assets of the materials segment, and its product lines, our calculation adds back all depreciation, depletion and amortization to the materials segment and its product lines and does not eliminate any in consolidation. Management believes that non-GAAP financial measures such as materials segment cash gross profit and materials segment cash gross profit by product line and the related margins are useful in evaluating operating performance and are regularly used by securities analysts, institutional investors and other interested parties, and that such supplemental measures facilitate comparisons between companies that have different capital and financing structures. Management believes that these additional non-GAAP financial measures facilitate comparisons between industry peer companies, and management uses these non-GAAP financial measures in evaluating performance. However, the reader is cautioned that any non-GAAP financial measures provided by us are provided in addition to, and not as alternatives for, our reported results prepared in accordance with GAAP. Items that may have a significant impact on our financial position, results of operations and cash flows must be considered when assessing our actual financial condition and performance regardless of whether these items are included in non-GAAP financial measures. The methods used by us to calculate non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures provided by us may not be comparable to similar measures provided by other companies. (1) We define EBITDA as GAAP net income attributable to Granite Construction Incorporated, adjusted for net interest expense, taxes, depreciation, depletion and amortization. Adjusted EBITDA and adjusted EBITDA margin exclude the impact of other costs, net, stock-based compensation and loss on debt extinguishment as described above. (2) Represents net income, EBITDA and adjusted EBITDA divided by consolidated revenue of $1.13 billion and $1.08 billion for the three months ended June 30, 2025 and 2024, respectively, and $1.83 billion and $1.75 billion for the six months ended June 30, 2025 and 2024, respectively. (3) Amount includes the sum of depreciation, depletion and amortization which are classified as cost of revenue and selling, general and administrative expenses in the condensed consolidated statements of operations. Expand ADJUSTED NET INCOME RECONCILIATION (Unaudited - in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income before income taxes $ 107,559 $ 59,550 $ 67,476 $ 20,582 Other costs, net 13,253 10,225 22,679 21,235 Transaction costs 3,992 4,313 7,979 9,940 Stock-based compensation 2,415 2,189 34,632 15,084 Loss on debt extinguishment — 27,824 — 27,824 Adjusted income before income taxes $ 127,219 $ 104,101 $ 132,766 $ 94,665 Provision for income taxes $ 27,214 $ 20,693 $ 15,458 $ 11,167 Tax effect of adjusting items(1) 5,062 4,469 16,812 12,147 Adjusted provision for income taxes $ 32,276 $ 25,162 $ 32,270 $ 23,314 Net income attributable to Granite Construction Incorporated $ 71,700 $ 36,895 $ 38,044 $ 5,912 After-tax adjusting items 14,598 40,082 48,478 61,936 Adjusted net income attributable to Granite Construction Incorporated $ 86,298 $ 76,977 $ 86,522 $ 67,848 Diluted weighted average shares of common stock 52,755 52,727 52,616 44,593 Add: dilutive effect of Convertible Notes(2) — 35 — 8,138 Less: dilutive effect of Convertible Notes(3) (8,040 ) (8,138 ) (8,055 ) (8,138 ) Adjusted diluted weighted average shares of common stock 44,715 44,624 44,561 44,593 Diluted net income per share attributable to common shareholders $ 1.42 $ 0.76 $ 0.84 $ 0.13 After-tax adjusting items per share attributable to common shareholders 0.51 0.97 1.10 1.39 Adjusted diluted earnings per share attributable to common shareholders $ 1.93 $ 1.73 $ 1.94 $ 1.52 Expand (1) The tax effect of adjusting items was calculated using our estimated annual statutory tax rate. The tax effect of adjusting items for the three and six months ended June 30, 2024 excludes the $27 million loss on debt extinguishment as it was almost entirely non-tax deductible. (2) The dilutive effect of the 2.75% Convertible Notes and the 3.75% Convertible Notes was 35,000 and 8,138,000 shares for the three and six months ended June 30, 2024, respectively. (3) When calculating diluted net income attributable to common shareholders, GAAP requires that we include potential share dilution from the convertible notes when not antidilutive. We entered into capped call transactions relating to both the 3.75% and 3.25% convertible notes to offset the dilutive impact of the convertible notes. The impact of the capped call transactions was excluded from the GAAP diluted net income attributable to common shareholders calculation as the impact would be antidilutive. For the purpose of calculating our adjusted diluted net income per share attributable to common shareholders, the dilutive effect of the convertible notes is removed to reflect the impact of the capped call transactions. Expand NM - not meaningful (1) The Aggregate product line includes aggregates and recycled materials. The Asphalt product line includes asphalt concrete and liquid asphalt. External revenue and average selling price include freight and delivery costs that we pass along to our customers. (2) Represents our other product line which is comprised of immaterial amounts of products and services that are not considered core product lines, as well as eliminations of interproduct and intersegment transactions. (3) Includes both intersegment and interproduct revenues. Intersegment revenues for the three months ended June 30, 2025 and June 30, 2024 were $63.3 million and $74.9 million, respectively. Expand NM - not meaningful (1) The Aggregate product line includes aggregates and recycled materials. The Asphalt product line includes asphalt concrete and liquid asphalt. External revenue and average selling price include freight and delivery costs that we pass along to our customers. (2) Represents our other product line which is comprised of immaterial amounts of products and services that are not considered core product lines, as well as eliminations of interproduct and intersegment transactions. (3) Includes both intersegment and interproduct revenues. Intersegment revenues for the six months ended June 30, 2025 and June 30, 2024 were $84.0 million and $86.6 million, respectively. Expand
Yahoo
02-04-2025
- Business
- Yahoo
Is Granite Construction (GVA) One of the Best Engineering Stocks to Invest in Now?
We recently published a list of . In this article, we are going to take a look at where Granite Construction Incorporated (NYSE:GVA) stands against other best engineering stocks to invest in now. The global engineering services market was valued at $3.26 trillion in 2023, as reported by Grand View Research. It's projected to grow at a CAGR of 5.5% from 2024 to 2030, due to several driving factors. Technological advancements, particularly the integration of automation, AI, and IoT, are dramatically enhancing productivity and operational efficiency. Simultaneously, rapid urbanization and substantial government investments are driving increased infrastructure development worldwide. Stringent environmental regulations are also forcing an emphasis on sustainable solutions, which further propels this market expansion. According to ALLPLAN, the architecture, engineering, and construction (AEC) industry collectively is undergoing a fundamental shift, with sustainability transitioning from an optional consideration to an essential imperative. As the urgency of climate change intensifies, the built environment faces increasing pressure to minimize its environmental impact and contribute to global net-zero targets. The engineering industry is actively exploring and implementing innovative sustainable solutions. The adoption of green building materials, such as recycled aggregates and low-carbon concrete, is gaining traction as a means of reducing environmental footprints and promoting circular construction principles. Energy-efficient designs that incorporate passive strategies and renewable energy systems are becoming standard practice. The rise of smart cities, which are powered by IoT and AI, further underscores the industry's commitment to urban sustainability. Technology is pivotal for driving sustainable practices. Building Information Modeling (BIM) and Digital Twins empower engineering teams to optimize designs, reduce material waste, and enhance operational efficiency, which leads to more sustainable project outcomes. Automation and prefabrication are reshaping construction methodologies by minimizing both material waste and energy consumption. Real-time monitoring systems, which use IoT and AI, provide critical data for informed decision-making. Achieving sustainability in engineering projects necessitates a proactive and collaborative approach. Lifecycle assessments, localized material sourcing, and robust monitoring systems are essential engineering strategies. By embracing principles of technological innovation and collaborative engineering practices, engineers are mitigating the environmental impact of their projects and creating more resilient and sustainable infrastructure. We used the Finviz stock screener to compile an initial list of top engineering stocks. We then selected 11 engineering stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 900 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A construction worker in full protective gear using heavy machinery to build a bridge. Number of Hedge Fund Holders: 41 Granite Construction Incorporated (NYSE:GVA) delivers engineering and construction solutions for large-scale infrastructure projects. These include roads, bridges, and complex site developments, alongside the production of core construction materials. Its expertise extends to projects in sectors like mining, public safety, and energy. The Construction segment at the company is experiencing a robust market, with state transportation budgets near record levels. California's 2025-2026 budget sees increases in key transportation areas. About 75% of the segment's revenue comes from publicly funded projects, which are supported by the Federal Infrastructure Bill (IIJA). The remaining 25% is private work, which includes water and rail infrastructure. In Q4 2024, the segment won more work year-over-year, though Contract Awarded Projects (CAP) decreased slightly sequentially. However, CAP is expected to increase in 2025, with backlog quality improving. Granite Construction Incorporated (NYSE:GVA) is securing best-value projects within its core markets using existing relationships for larger and lower-risk projects. This strategy has improved project execution and margin expansion. Overall, GVA ranks 9th on our list of best engineering stocks to invest in now. While we acknowledge the growth potential of GVA, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GVA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
29-01-2025
- Business
- Yahoo
While shareholders of Granite Construction (NYSE:GVA) are in the black over 5 years, those who bought a week ago aren't so fortunate
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Granite Construction Incorporated (NYSE:GVA) share price has soared 212% in the last half decade. Most would be very happy with that. But it's down 9.8% in the last week. But this could be related to the soft market, with stocks selling off around 0.2% in the last week. Since the long term performance has been good but there's been a recent pullback of 9.8%, let's check if the fundamentals match the share price. See our latest analysis for Granite Construction While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the last half decade, Granite Construction became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We know that Granite Construction has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Granite Construction will grow revenue in the future. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Granite Construction's TSR for the last 5 years was 237%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! It's good to see that Granite Construction has rewarded shareholders with a total shareholder return of 87% in the last twelve months. That's including the dividend. That's better than the annualised return of 28% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Granite Construction better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Granite Construction you should be aware of. If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
