NYSE$GVA

Granite Construction Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Granite reported a net loss due to ORP costs but saw strength in its core business.

Granite Construction Incorporated reported a net loss of $(2) million, or $(0.05) per diluted share, for the quarter ended June 30, 2022. The results were impacted by additional costs in the Old Risk Portfolio (ORP). However, the core business is getting stronger, with improved gross profit margins excluding the ORP and higher quality CAP in mix and margin.

  • Second quarter results were impacted by additional costs in the ORP.
  • Estimate of remaining ORP work going into 2023 is on track and remains largely unchanged.
  • Core business is getting stronger, illustrated by improved gross profit margins excluding the ORP and higher quality CAP in mix and margin.
  • Accrued $12 million for an expected resolution of the SEC investigation.

Headline financials

Total Revenue

$768M

Previous: $964M-20.3%
EPS (adj)

$0.38

Previous: $0.91-58.2%
Adjusted EBITDA

$5.50

Previous: $79.9M-100.0%
Committed and Awarded Projects

$4.2B

No prior period
Capital Expenditures

-$73.2M

Previous: -$46.4M-57.7%
Free Cash Flow

-$56.1M

Previous: $8.02M-798.7%
Net Income

$17.2M

Previous: $54.5M-68.5%
Operating Income

$5.53M

Previous: $68.6M-91.9%
Gross Profit

$78.5M

Previous: $117M-32.9%
Cash & Equivalents

$175M

Previous: $393M-55.5%
Total Assets

$2.29B

Previous: $2.48B-7.6%
Stock-Based Comp

$1.76M

Previous: $2.58M-31.6%

Revenue & EPS history

Granite · Revenue · Quarterly

$768M

Q2 2022-20.3%vs Q2 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Granite · $1.12B total across 2 segments · Q3 2023

  • Construction
    $946M+13.3%
  • Materials
    $171M-2.2%

Forward guidance

For the 2022 fiscal year, the Company is revising adjusted EBITDA margin guidance to a range of 5.5% - 6.5% from a range of 6% - 8%. The remaining guidance below is unchanged:

Tailwinds

  • Low single digit growth in revenue from continuing operations
  • SG&A expense from continuing operations in the range of 8.0% to 8.5% of revenue
  • Low-to-mid-20s effective tax rate range
  • Capital expenditures in the range of $100 million to $115 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.8%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+3.1%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+25.9%

Q3 2023

Best reaction

-30.3%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+12.2%+15.6%+11.6%
Q4 2025-3.0%-3.4%-9.3%
Q3 2025-3.4%-0.3%+5.2%
Q1 2025-2.4%+1.1%+10.0%
Q4 2024+0.6%+1.2%-14.6%
Q3 2024+5.4%+11.3%+21.1%
Q2 2024+1.5%+0.7%+9.8%
Q1 2024+8.0%+8.2%+13.3%
Q4 2023-1.3%-0.3%+9.7%
Q3 2023+25.9%+33.9%+33.9%
Q2 2023-7.8%-4.2%-6.3%
Q1 2023-7.4%-6.4%-4.7%
Q4 2022+6.1%+3.1%-2.9%
Q3 2022+18.1%+22.5%+26.2%
Q2 2022-1.9%-0.6%+0.9%
Q1 2022-1.0%+4.3%+10.5%
Q4 2021-12.4%+0.5%-8.7%
Q3 2021-3.9%-5.0%+5.4%
Q2 2021-0.2%+1.8%+8.0%
Q1 2021-3.7%-7.8%-3.5%
Q4 2020+6.7%+5.9%+3.2%
Q3 2020-5.2%-0.6%+6.5%
Q2 2020-5.2%-0.6%+6.5%
Q1 2020-5.2%-0.6%+6.5%
Q4 2019-3.5%-13.9%-24.2%
Q3 2019-30.3%-34.4%-29.2%
Q2 2019-10.2%-12.9%-16.4%
Q1 2019+2.4%+4.6%-7.4%
Q4 2018+3.3%+3.9%-4.9%
Q3 2018+13.4%+12.7%+26.7%
Q2 2018-12.6%-16.6%-15.5%
Q1 2018+1.6%+1.6%+7.8%
Q4 2017+4.0%+3.2%+4.9%
Q3 2017+10.3%+8.6%+11.2%
Q2 2017+8.6%+8.4%+12.7%
Q1 2017-0.3%-1.1%-11.1%
Q4 2016+0.1%-1.2%-10.9%
Q3 2016+15.1%+8.8%+43.1%
Q2 2016-1.2%-1.3%-5.1%
Q1 2016-2.8%
Q4 2015+3.3%
Q3 2015+7.2%
Q2 2015-1.8%
Q1 2015+9.9%
Q4 2014-4.1%
Q3 2014-3.8%
Q2 2014+1.1%
Q1 2014-1.7%
Q4 2013+7.9%
Q3 2013-11.7%
Q2 2013+6.4%
Q1 2013+5.5%
Q4 2012-14.3%
Q3 2012-4.9%
Q2 2012-2.0%
Q1 2012-3.0%
Q4 2011+11.6%
Q3 2011+13.9%
Q4 2010-8.1%
Q2 2011-8.1%
Q1 2010+3.3%
Q1 2011-0.2%
Q4 2008+3.8%
Q3 2009+6.0%
Q3 2010+6.0%
Q2 2010+5.4%
Q2 2009+5.4%
Q4 2009+5.4%

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