(GVA) - Granite Construction Inc. - One of the nation's largest heavy civil contractors and construction materials producers

Granite Construction Incorporated (GVA), which was first highlighted as a Growth and Income stock on Mar 3, topped analysts' earnings expectations over the past four quarters by an average margin of 33.0%. Earnings per share are projected to grow 13% over the next 3-5 years. Consensus estimates for this year and next have been climbing. This Zacks #1 Rank stock's return on equity exceeds that of the industry average--17% compared to 12%. Full Analysis Granite Construction Incorporated is the parent company of Granite Construction Company, one of the nation's largest heavy civil contractors and construction materials producers. When GVA was first presented as a Growth and Income stock on Mar 3, it had met or exceeded the consensus earnings estimate in six out of the past seven quarters. In the two quarters since the company's debut, GVA surprised to the upside by an average margin of 39.5%. Most importantly, the company is still a Zacks #1 Rank stock (strong buy). On Jul 26, GVA reported second-quarter profits of $33.3 million, or 80 cents per share. The result beat the Street's estimate of 54 cents by 48.2% and crushed earnings in the prior-year period by 122.2%. Total revenues increased 20.0% to $812.0 million compared with $676.7 million a year earlier. For the first six months of the year, GVA's profits came in at $31.9 million, compared to $6.7 million for the first half of 2005. Total revenues climbed 18.2% to $1.3 billion. GVA increased revenues for the past nine years, most recently by 23.7% in 2005. The consensus estimate for this year currently calls for $2.72. This represents an 11.5% jump when compared to the consensus of 60 days ago. For 2007, profit forecasts have risen 10.8% to $2.98. Five analysts submitted upward revisions for both years. Earnings per share are projected to grow 13% over the next 3-5 years, which is in line with the expected growth rate of the industry. President and CEO William G. Dorey stated, “As a result of our second quarter performance, operating cash flow continues to improve.” This should bode well for those seeking additional income in the form of a dividend. The Board of Directors declared a quarterly cash dividend of 10 cents per common share of stock on Jul 24. The dividend is payable Oct 13 to shareholders of record as of Sep 30. The company is currently yielding 0.76%. GVA's profitability is quite impressive. Its return on equity exceeds that of the industry average—-17% compared to 12%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home