Myers & Sons Construction, L.P., an affiliate of Sterling Construction Company, Inc. (STRL), has been declared a low bidder on the California Department of Transportation’s (CalTrans) Las Virgenes Canyon Road project. The company put forward a bid of around $53.6 million for the Route 101 project.
The Las Virgenes Canyon Road is an important link that runs through a large wildlife park between suburban communities north of Los Angeles (LA.V). The Las Virgenes Canyon Road project involves its repair and enhancement, in order to improve driving and traffic conditions for motorists.
Per the project, Myers, the pre-cast panel contractor, will mainly deal with the replacement of failing concrete of 30,850 CY (cubic yard) from Calabasas (PM 28.3) to Agoura Hills (PM 31.1) in Southern California. The total failing concrete comprises 9,900 CY of Lean Concrete Base and 20,950 CY Precast Jointed Concrete Pavement.
The scope of work also consists of placing 191,000 tons of Rubberized Asphalt Pavement at various locations along Hwy 101. The construction work, to be conducted during weekend closures, is expected to commence in late 2014 and take approximately 18 months to complete.
Recently, Sterling Construction was also declared a low bidder on an $80 million Texas Department of Transportation (TxDOT) project. The work on State Highway 199 in Tarrant County involves construction of three cast-in-place post-tensioned box girder bridges, retaining walls, street reconstruction and landscaping,
Sterling Construction reported an impressive second-quarter 2014 earnings of 7 cents per share, reversing from loss in the prior-year quarter. Sales improved 46% year over year to $194.8 million driven by the completion of major contracts along with an increase in projects and process particularly in the Texas and California markets.
Sterling Construction anticipates growth in revenues for the second half of 2014 based on the execution of existing projects and new awards. The company forecasts general and administrative expenses to remain below 6% of revenues.
Houston, TX-based Sterling Construction is a leading heavy civil construction company engaged in building and reconstruction of transportation and water infrastructure projects in Texas, Utah, Nevada, Arizona, California and other states. Its transportation infrastructure projects include highways, roads, bridges, and light rail; and its water infrastructure projects comprise water, wastewater, and storm drainage systems.
Sterling Construction currently carries a Zacks Rank #4 (Sell). However, some better-ranked stocks in the sector include Boise Cascade Company (BCC), PGT, Inc. (PGTI) and UCP, Inc. (UCP). All these stocks carry a Zacks Rank #2 (Buy).