NYSE$TPC

Tutor Perini Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported strong results driven by civil segment growth and strong operating cash flow.

Tutor Perini reported a strong second quarter with revenue up 13% year-over-year, driven by growth in the Civil segment. The company generated $92.2 million in operating cash flow, the highest second-quarter result since the merger in 2008. Diluted EPS was $0.37, a significant improvement year-over-year. The company affirms its 2020 EPS guidance of $1.80 to $2.10.

  • Strong operating cash flow of $92.2 million, the highest second-quarter result since the merger in 2008.
  • Revenue of $1.3 billion, up 13% year-over-year, driven by 20% year-over-year growth in the Civil segment.
  • Double-digit revenue growth year-to-date across all segments despite COVID-19 impacts.
  • Diluted earnings per share of $0.37, vastly improved year-over-year.

Headline financials

Total Revenue

$1.28B

Previous: $1.13B+13.4%
EPS (adj)

$0.36

Previous: -$6.39+105.6%
Operating cash flow

$92.2M

Previous: $13.3M+593.2%
Backlog

$10B

Previous: $11.4B-12.3%
Capital Expenditures

-$31.4M

Previous: -$39.3M+20.2%
Free Cash Flow

-$12.7M

Previous: -$360M+96.5%
Net Income

$18.7M

Previous: -$321M+105.8%
Operating Income

$57.7M

Previous: -$342M+116.9%
Gross Profit

$118M

Previous: $101M+16.7%
Cash & Equivalents

$183M

Previous: $150M+21.8%
Total Assets

$4.76B

Previous: $4.41B+7.9%
Stock-Based Comp

$4.02M

Previous: $4.57M-12.1%

Revenue & EPS history

Tutor Perini · Revenue · Quarterly

$1.28B

Q2 2020+13.4%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Tutor Perini · $1.28B total across 3 segments · Q2 2020

  • Specialty Contractors
    $569M
  • Civil
    $473M
  • Building
    $234M

Forward guidance

The Company is affirming its EPS guidance and still expects EPS to be in the range of $1.80 to $2.10. Earnings in 2020 are expected to be weighted more heavily to the second half of the year due to the anticipated continued progress of large infrastructure projects, as well as typical business seasonality.

Tailwinds

  • Anticipated continued progress of large infrastructure projects.
  • Typical business seasonality.
  • Favorable execution on large infrastructure projects is driving strong revenue and earnings growth.
  • Good progress toward settlements of disputes with project owners.
  • Anticipate additional settlements and associated cash collections later this year and next year.

Headwinds

  • COVID-19 pandemic reduced the Company’s revenue, income from construction operations and diluted EPS for the second quarter of 2020 by an estimated $130 million, $9 million and $0.13, respectively.
  • Due to the fluidity of the COVID-19 pandemic, the Company is unable at this time to accurately predict the pandemic’s future impact on the Company’s business, financial condition or performance.
  • Backlog declined as a result of the higher current year revenue generated from near-record backlog at the end of 2019 outpacing current year new awards.
  • Unfavorable arbitration ruling pertaining to an electrical project in New York
  • The Company continues to evaluate options to address the spring-forward provision of its revolving credit facility and the refinancing or retirement of its outstanding Convertible Notes.

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 2020

Historical avgQ2 2020

-0.2%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+0.4%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+34.4%

Q4 2024

Best reaction

-30.3%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.3%-14.9%-27.6%
Q4 2025-15.7%-17.5%-14.8%
Q3 2025-1.2%-7.8%-0.1%
Q1 2025+25.2%+51.6%+71.8%
Q4 2024+34.4%+25.6%+7.5%
Q3 2024+21.3%+11.8%-2.3%
Q2 2024-30.3%-24.5%-3.7%
Q1 2024+2.4%+8.4%+15.0%
Q4 2023+25.1%+28.1%+59.6%
Q3 2023-3.2%+9.5%+10.9%
Q2 2023-3.9%+11.1%+5.7%
Q1 2023+2.9%-4.0%-10.9%
Q4 2022-17.3%-15.2%-28.3%
Q3 2022-0.7%+4.2%-1.2%
Q2 2022-18.9%-20.0%-26.7%
Q1 2022+2.9%-4.2%-11.2%
Q4 2021-6.2%-16.0%-6.8%
Q3 2021-5.9%+3.5%-7.1%
Q2 2021-1.4%-0.3%-1.2%
Q1 2021+0.4%+2.8%-14.8%
Q4 2020-1.2%-12.9%+1.9%
Q3 2020-5.0%-8.1%-7.8%
Q2 2020+3.8%+6.1%+7.3%
Q1 2020+14.4%+10.3%+20.1%
Q4 2019+4.7%+21.0%-48.0%
Q3 2019+10.1%+14.3%-10.2%
Q2 2019-6.7%-5.3%-6.2%
Q1 2019+2.6%+10.7%+16.6%
Q4 2018+6.5%+8.3%-3.1%
Q3 2018-2.3%-6.0%-5.3%
Q2 2018+9.7%+6.8%+6.1%
Q1 2018-1.4%+5.0%-6.3%
Q4 2017+7.3%-2.4%-2.0%
Q3 2017-6.2%-7.6%+7.6%
Q2 2017+4.4%-1.1%-1.1%
Q1 2017-1.1%-1.9%-1.0%
Q4 2016+4.0%+5.5%+2.3%
Q3 2016+2.9%+5.6%+38.6%
Q2 2016-4.8%-1.3%-6.9%
Q1 2016-0.8%
Q4 2015+9.2%
Q3 2015+1.5%
Q2 2015-16.6%
Q1 2015+0.4%
Q4 2014-10.7%
Q3 2014+0.9%
Q2 2014+3.8%
Q1 2014+3.4%
Q4 2013+9.0%
Q3 2013-2.6%
Q2 2013-2.1%
Q1 2013-1.8%
Q4 2012-4.5%
Q3 2012+24.4%
Q2 2012-12.8%
Q1 2011-18.7%
Q1 2012+2.8%
Q4 2011-9.0%
Q4 2009-9.0%
Q3 2010+3.8%
Q3 2011+3.8%
Q4 2010-15.7%
Q2 2010-15.7%
Q2 2011-15.7%
Q1 2010+8.2%

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