Tutor Perini's (TPC) Roy Anderson Wins $80.7 Million Project
Tutor Perini Corporation’s TPC subsidiary, Roy Anderson Corp, has won the New Residence Hall construction project at Mississippi State University in Starkville, MS.
The scope of this approximately $80.7 million project includes the construction of a five-story residence hall on the university’s campus, which will house 400 beds, a dining hall, day spaces, offices and a storm shelter.
The work on the project will begin in February 2024 and is expected to be complete by the first half of 2025. This contract’s value will be added in Tutor Perini’s fourth-quarter 2023 backlog.
Following the announcement, shares of TPC dipped 0.2% during the trading session but inched up 0.1% in the after-hours trading session on Jan 4.
Contract Winning Spree Bodes Well
Tutor Perini’s efficient project execution, along with diversified delivery methods and services, have aided it in bagging new contracts and awards consistently. This is the primary growth driver of the company, which adds to its backlog level, thus determining the long-term growth prospects in this ever-changing economy.
At the end of the third quarter of 2023, TPC’s backlog was $10.6 billion, up 28% year over year, primarily attributable to its second-quarter award of the $2.95 billion Brooklyn Jail progressive design-build project. In the third quarter, the company witnessed about six new awards and contract adjustments with a total of $420 million.
TPC remains optimistic about its bidding pipeline as it witnesses several active opportunities on large projects thanks to substantial government funding and limited competition for many of the larger projects. Backed by these tailwinds, the company expects its backlog to significantly grow over the next 12 to 18 months. The client and project-selective motto of the company is impressive as it aids in gauging risky scenarios and avoiding financial uncertainties.
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Owing to these tailwinds, shares of this civil, building and specialty construction company have gained 25.7% in the past six months against the Zacks Building Products - Heavy Construction industry’s 6.2% decline.
Zacks Rank & Key Picks
Tutor Perini currently carries a Zacks Rank #5 (Strong Sell).
Here are some better-ranked stocks from the Construction sector.
Fluor Corporation FLR presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It has a trailing four-quarter earnings surprise of 37.5%, on average. Shares of FLR have increased 12.3% in the past year. The Zacks Consensus Estimate for FLR’s 2024 sales and earnings per share (EPS) indicates an improvement of 9.3% and 11.1%, respectively, from the prior-year levels.
Martin Marietta Materials, Inc. MLM currently sports a Zacks Rank of 1. MLM delivered a trailing four-quarter earnings surprise of 37.3%, on average. The stock has gained 38.4% in the past year.
The Zacks Consensus Estimate for MLM’s 2024 sales and EPS indicates growth of 9.7% and 14%, respectively, from a year ago.
Taylor Morrison Home Corporation TMHC currently carries a Zacks Rank #2 (Buy). TMHC delivered a trailing four-quarter earnings surprise of 17.5%, on average. The stock has gained 55.1% in the past year.
The Zacks Consensus Estimate for TMHC’s 2024 sales indicates growth of 0.8% while EPS indicates a decline of 6.6% from a year ago.
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Taylor Morrison Home Corporation (TMHC) : Free Stock Analysis Report
