We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Great Lakes Secures Multiple Dredging Contracts for $256M, Stock Up
Read MoreHide Full Article
Great Lakes Dredge & Dock Corporation (GLDD - Free Report) announced multiple dredging contracts, worth $256.2 million. Such capital, coastal protection and maintenance work allow the company to improve the country’s environment, coastlines and infrastructure.
The first contract is the Mobile Harbor, AL Deepening and Widening Dredging Project 2A, received from the U.S. Army Corps of Engineers, Mobile District. The scope of the work includes deepening the channel by six feet to improve channel navigation, which will allow deeper draft vessels to use the port and reuse material in the Sand Island Beneficial Use Area. It is expected to begin in the fourth quarter and close in the spring of 2025.
The second contract is the Port Everglades Sand Bypass Project to renourish beach in Broward County, FL, with a renewable local source of sand. The work involves the construction of a sand trap on the north side of the Port inlet to collect sand that would otherwise be lost through erosion and offshore transport. Accumulated sand can be then harvested for future beach placement. The project is expected to start in the second half of 2025 with estimated completion in 2026. The contract value was included in the second-quarter backlog.
The third contract, which was given by the U.S. Army Corps of Engineers, Philadelphia District, is the Barnegat Inlet to Little Egg Inlet, Long Beach Island Beach Renourishment Project. The work entails placing beach fill to repair the dune and berm system along the Atlantic Ocean coastline of Long Beach Island, NJ. This project has potential options pending of approximately $63.8 million. Work will likely start in the fourth quarter and is expected to finish in third-quarter 2025. The deal was in low bids pending at the end of the second quarter.
The Fire Island Inlet Dredging Project is the fourth contract and is provided by the U.S. Army Corps of Engineers, New York District. The work includes emergency beach fill and shore protection to multiple communities along Fire Island, NY. Work is expected to start in the fourth quarter and is estimated to be completed in the first half of 2025.
The fifth contract, the North Wildwood, NJ’s Emergency Beach Renourishment Project, was given by the Department of Transportation and was awarded, performed and completed in the second quarter of 2024. It aimed to provide sand on the North Wildwood beaches to protect shore properties and ensure a safer shoreline for residents and visitors.
Lastly, the St. Lucie Inlet Maintenance Dredging Project contract, which was included in the first-quarter backlog, aims to maintain the dredging of the entrance channel and impoundment basin. This was provided by the U.S. Army Corps of Engineers, Jacksonville District. Work on this project started in July and is estimated to be completed in the third quarter of 2024.
Along with these contracts, Great Lakes has approximately $318 million in low bids and options pending award, which brings the potential total pipeline of work to more than $1.2 billion.
On Aug. 26, its shares jumped 8.5% in the day trading session.
Great Lakes is the largest provider of dredging services in the United States. The company mainly banks on strong domestic dredging operations, high equipment utilization, solid project execution and savings from restructuring.
GLDD continued to bid on projects and build a solid backlog for the second quarter. Great Lakes ended the second quarter with $807.9 million in dredging backlog compared with $1.04 billion at 2023-end. Of the reported backlog, capital projects comprised 71.2%.
It expects the dredging bid market to remain robust for the remainder of 2024. We believe the company’s strong bidding ability and project execution, along with improved market conditions, fleet adjustment and cost reduction initiatives, will boost its performance in 2024 and beyond.
Some other top-ranked stocks in the same space are EMCOR Group Inc. (EME - Free Report) , MasTec, Inc. (MTZ - Free Report) and Granite Construction Incorporated (GVA - Free Report) .
EMCOR, which currently sports a Zacks Rank of 1, has surged 69.7% over the past year. Also, 2024 earnings per share (EPS) estimates have increased to $18.00 from $16.30 over the past 60 days. EPS for 2024 is expected to grow 34.9%. EME's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 36.5%. It carries an impressive VGM Score of B. VGM Score helps to identify stocks with the most attractive value, growth and momentum.
MasTec, currently carrying a Zacks Rank of 2, has gained 12.3% over the past year. EPS estimates for 2024 have increased to $3.02 from $2.95 over the past 30 days. EPS for 2024 is expected to grow 53.3%. MTZ beat on earnings in three of the trailing four quarters but missed on one occasion, the average surprise being 19.4%. It carries an impressive VGM Score of A.
GVA, currently carrying a Zacks Rank of 2, has gained 79.9% over the past year. Its 2024 EPS estimates have increased to $5.24 from $4.76 over the past 30 days. EPS for 2024 is expected to grow 66.9%. GVA’s earnings surpassed the consensus estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 26.4%. It carries an impressive VGM Score of B.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Great Lakes Secures Multiple Dredging Contracts for $256M, Stock Up
Great Lakes Dredge & Dock Corporation (GLDD - Free Report) announced multiple dredging contracts, worth $256.2 million. Such capital, coastal protection and maintenance work allow the company to improve the country’s environment, coastlines and infrastructure.
The first contract is the Mobile Harbor, AL Deepening and Widening Dredging Project 2A, received from the U.S. Army Corps of Engineers, Mobile District. The scope of the work includes deepening the channel by six feet to improve channel navigation, which will allow deeper draft vessels to use the port and reuse material in the Sand Island Beneficial Use Area. It is expected to begin in the fourth quarter and close in the spring of 2025.
The second contract is the Port Everglades Sand Bypass Project to renourish beach in Broward County, FL, with a renewable local source of sand. The work involves the construction of a sand trap on the north side of the Port inlet to collect sand that would otherwise be lost through erosion and offshore transport. Accumulated sand can be then harvested for future beach placement. The project is expected to start in the second half of 2025 with estimated completion in 2026. The contract value was included in the second-quarter backlog.
The third contract, which was given by the U.S. Army Corps of Engineers, Philadelphia District, is the Barnegat Inlet to Little Egg Inlet, Long Beach Island Beach Renourishment Project. The work entails placing beach fill to repair the dune and berm system along the Atlantic Ocean coastline of Long Beach Island, NJ. This project has potential options pending of approximately $63.8 million. Work will likely start in the fourth quarter and is expected to finish in third-quarter 2025. The deal was in low bids pending at the end of the second quarter.
The Fire Island Inlet Dredging Project is the fourth contract and is provided by the U.S. Army Corps of Engineers, New York District. The work includes emergency beach fill and shore protection to multiple communities along Fire Island, NY. Work is expected to start in the fourth quarter and is estimated to be completed in the first half of 2025.
The fifth contract, the North Wildwood, NJ’s Emergency Beach Renourishment Project, was given by the Department of Transportation and was awarded, performed and completed in the second quarter of 2024. It aimed to provide sand on the North Wildwood beaches to protect shore properties and ensure a safer shoreline for residents and visitors.
Lastly, the St. Lucie Inlet Maintenance Dredging Project contract, which was included in the first-quarter backlog, aims to maintain the dredging of the entrance channel and impoundment basin. This was provided by the U.S. Army Corps of Engineers, Jacksonville District. Work on this project started in July and is estimated to be completed in the third quarter of 2024.
Along with these contracts, Great Lakes has approximately $318 million in low bids and options pending award, which brings the potential total pipeline of work to more than $1.2 billion.
On Aug. 26, its shares jumped 8.5% in the day trading session.
Price Performance of GLDD Stock
Great Lakes has outperformed the Zacks Engineering - R and D Services industry in the past three months.
Image Source: Zacks Investment Research
Great Lakes is the largest provider of dredging services in the United States. The company mainly banks on strong domestic dredging operations, high equipment utilization, solid project execution and savings from restructuring.
GLDD continued to bid on projects and build a solid backlog for the second quarter. Great Lakes ended the second quarter with $807.9 million in dredging backlog compared with $1.04 billion at 2023-end. Of the reported backlog, capital projects comprised 71.2%.
It expects the dredging bid market to remain robust for the remainder of 2024. We believe the company’s strong bidding ability and project execution, along with improved market conditions, fleet adjustment and cost reduction initiatives, will boost its performance in 2024 and beyond.
GLDD’s Zacks Rank & Other Key Picks
GLDD currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the same space are EMCOR Group Inc. (EME - Free Report) , MasTec, Inc. (MTZ - Free Report) and Granite Construction Incorporated (GVA - Free Report) .
EMCOR, which currently sports a Zacks Rank of 1, has surged 69.7% over the past year. Also, 2024 earnings per share (EPS) estimates have increased to $18.00 from $16.30 over the past 60 days. EPS for 2024 is expected to grow 34.9%. EME's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 36.5%. It carries an impressive VGM Score of B. VGM Score helps to identify stocks with the most attractive value, growth and momentum.
MasTec, currently carrying a Zacks Rank of 2, has gained 12.3% over the past year. EPS estimates for 2024 have increased to $3.02 from $2.95 over the past 30 days. EPS for 2024 is expected to grow 53.3%. MTZ beat on earnings in three of the trailing four quarters but missed on one occasion, the average surprise being 19.4%. It carries an impressive VGM Score of A.
GVA, currently carrying a Zacks Rank of 2, has gained 79.9% over the past year. Its 2024 EPS estimates have increased to $5.24 from $4.76 over the past 30 days. EPS for 2024 is expected to grow 66.9%. GVA’s earnings surpassed the consensus estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 26.4%. It carries an impressive VGM Score of B.