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Q1 Earnings Highlights: Great Lakes Dredge & Dock (NASDAQ:GLDD) Vs The Rest Of The Construction and Maintenance Services Stocks


Kayode Omotosho /
2024/07/10 4:48 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Great Lakes Dredge & Dock (NASDAQ:GLDD) and the best and worst performers in the construction and maintenance services industry.

Construction and maintenance services companies not only boast technical know-how in specialized areas but also may hold special licenses and permits. Those who work in more regulated areas can enjoy more predictable revenue streams - for example, fire escapes need to be inspected every five years–. More recently, services to address energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and maintenance services companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives incremental demand for these companies’ offerings.

The 10 construction and maintenance services stocks we track reported an ok Q1; on average, revenues were in line with analyst consensus estimates. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and construction and maintenance services stocks have held roughly steady amidst all this, with share prices up 1.6% on average since the previous earnings results.

Great Lakes Dredge & Dock (NASDAQ:GLDD)

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Great Lakes Dredge & Dock reported revenues of $198.7 million, up 25.7% year on year, exceeding analysts' expectations by 13.2%. Overall, it was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.

Great Lakes Dredge & Dock Total Revenue

Great Lakes Dredge & Dock achieved the biggest analyst estimates beat of the whole group. The stock is up 16.9% since reporting and currently trades at $8.24.

Is now the time to buy Great Lakes Dredge & Dock? Access our full analysis of the earnings results here, it's free.

Comfort Systems (NYSE:FIX)

Having historically grown through organic means as well as acquisitions of numerous peers and competitors, Comfort Systems USA (NYSE:FIX) provides mechanical and electrical contracting services.

Comfort Systems reported revenues of $1.54 billion, up 30.8% year on year, outperforming analysts' expectations by 4.8%. It was an incredible quarter for the company with an impressive beat of analysts' backlog sales and earnings estimates.

Comfort Systems Total Revenue

Comfort Systems delivered the fastest revenue growth among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 3.4% since reporting. It currently trades at $301.13.

Is now the time to buy Comfort Systems? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Matrix Service (NASDAQ:MTRX)

Founded in Oklahoma, Matrix Service Company (NASDAQ: MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.

Matrix Service reported revenues of $166 million, down 11.2% year on year, falling short of analysts' expectations by 15%. It was a weak quarter for the company with a miss of analysts' earnings estimates.

Matrix Service posted the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 24.1% since the results and currently trades at $9.

Read our full analysis of Matrix Service's results here.

Construction Partners (NASDAQ:ROAD)

Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.

Construction Partners reported revenues of $371.4 million, up 14.3% year on year, in line with analysts' expectations. Looking more broadly, it was a solid quarter for the company with an impressive beat of analysts' organic revenue estimates and full-year revenue guidance beating analysts' expectations.

Construction Partners delivered the highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at $53.41.

Read our full, actionable report on Construction Partners here, it's free.

Granite Construction (NYSE:GVA)

Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE:GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.

Granite Construction reported revenues of $672.3 million, up 20% year on year, in line with analysts' expectations. Looking more broadly, it was a weak quarter for the company with a miss of analysts' earnings estimates.

The stock is up 12.5% since reporting and currently trades at $61.8.

Read our full, actionable report on Granite Construction here, it's free.

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