Why Shares of Granite Construction Are Crumbling on Tuesday
Shares of Granite Construction (NYSE: GVA) traded down more than 18% on Tuesday afternoon after the general contractor and construction material producer warned that charges related to issues at key large projects would wipe out second-quarter profits. The company also said it has accelerated its strategic review of its heavy civil operating group in an effort to de-risk its portfolio.
Granite, in a statement published after markets closed Monday, said it will take a charge of between $2.20 and $2.30 per share in the second quarter due to "events related to four legacy, unconsolidated heavy civil joint venture projects." Including those charges, the company is expected to lose between $2.05 and $2.10 per share in the quarter on revenue of $785 million to $790 million, compared to analyst expectations for a $0.78 per-share profit on sales of $956 million.
The company is set to report second-quarter results on Aug. 2.
Quelle Fool.com
