Tutor Perini Corporation (TPC) has signed a contract with the San Francisco Municipal Transportation Agency (:SFMTA) worth around $840 million for the Third Street Light Rail Program Phase 2. Tutor Perini has also received notice to proceed (:NTP) for the project.
The Third Street Light Rail Project is the first part of a two-phase construction project to expand the Muni Metro system in San Francisco, Calif. The second phase, which is known as The Central Subway, involves the underground extension of the rail line.
The work under this contract includes the construction of three underground subway stations at Chinatown, Union Square/Market Street and Yerba Buena/Moscone Center. The project also entails the construction of a surface station at 4th and Brannan Streets. In addition, Tutor Perini is also required to build the systems and tracks in the stations.
Tutor Perini has started the initial work on the venture, which is expected to complete in the second quarter of 2018. The company expects to book the value of the contract into the backlog during the second quarter of 2013.
Sylmar, Calif.-based Tutor Perini reported first-quarter 2013 earnings of 31 cents per share, up almost four-fold from the year-ago earnings of 8 cents per share. It also surpassed the Zacks Consensus Estimate of 23 cents. The results were driven by increased revenues on the back of increased activity as well as reduction in general and administrative expenses.
Tutor Perini recorded a backlog of $5.5 billion as of Mar 31, 2013, compared with $5.6 billion as of Dec 31, 2012. The decrease was mainly due to a decline in the Building segment backlog. However, this was partly offset by an increase in backlog in the Civil, Specialty Contractors and Management Services segments.
However, Tutor Perini is expecting long-term backlog growth backed by large civil and non-residential building projects. It also expects earnings in the range of $1.65 to $1.90 per share and revenues between $4.5 billion and $5 billion for 2013.
Tutor Perini is a leading civil and building construction company offering diversified general contracting and design-build services to private clients and public agencies, globally.
Tutor Perini currently retains a Zacks Rank #2 (Buy).
Other stocks to consider in the same industry with a favorable Zacks Rank are Dycom Industries Inc. (DY), Orion Marine Group, Inc (ORN) and Primoris Services Corp (PRIM). While Dycom Industries holds a Zacks Rank #1 (Strong Buy), Orion Marine and Primoris Services carry a Zacks Rank #2 (Buy).
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