Boston, MA 03/13/2014 (wallstreetpr) – Granite Construction Inc. (NYSE:GVA) stock look set to benefit after the company was awarded a $36 million road and bridge contract by the Alaska Department of Transportation. Its stock was up by 2% after making the announcement, the project is expected to commence in April 2014 and should be complete as of 2015.
Granite Construction last month reported adjusted fourth quarter earnings of 2 cents a share that was impressive compared to analysts’ estimates of a loss of 3 cents. Net sales for the year was up by 18% compared to that of the same quarter a year ago, coming in at $598 million in the process
Terms of the contract
Granite Construction Inc. (NYSE:GVA) contract with Alaska department of transportation entail the construction of a new East-West corridor that should extend Dowling Road within the anchorage city limits. The construction company will also be required to build a new bridge over the Alaska railroad lines and the arctic revenue.
The project will also involve the improvement of soil stabilization as well as retaining walls with the company being required to build two signalized intersections. The company plans to book both the projects into its backlog during the first quarter of the current fiscal year.
Granite Construction Inc. (NYSE:GVA) total contract backlog for 2013 surged to $2.5 billion compared to $1.7 billion reported as of close of business in December 31, 2012. The rise was as a result of the addition of the Tappan Zee Bridge project in New York. The company’s private showing constructions have substantially increased over the past year and showing signs of greater growth in the current fiscal year.
Granite Construction expects to bid $13 billion, worth of large projects in the current fiscal year and foresees an additional $20 billion in large projects beyond 2014.
Granite Construction Inc. (NYSE:GVA) was down on Wednesday trading session by 0.46% closing the day at a low of $38.64.
