Great Lakes Dredge & Dock (GLDD) has seen a substantial increase in its shares following the release of its blowout quarterly results on May 7. The company reported a 25.7% year-over-year increase in Q1 contract revenues to $198.7 million, surpassing the consensus view by $28.3 million. This growth was driven by higher coastal protection and capital project activity, as well as improved vessel utilization and project performance. As a result, GLDD reported earnings of 31 cents per share, a significant improvement from the loss of 5 cents per share in the previous year.
Despite the strong performance in Q1, GLDD expects a sequential decrease in revenue and earnings in the current quarter due to the shifting of some ship maintenance work from Q1 to Q2. However, this maintenance-related activity is in preparation for new work, including the commencement of a liquefied natural gas project later in the year. The company is also currently working on its recently awarded Freeport port deepening and Sabine-Neches Waterway channel improvement projects in Texas, which are expected to contribute significantly to its revenue.
GLDD is one of the stocks recommended in the Forbes Investor newsletter, which focuses on undervalued gems with significant upside potential. The company’s strong performance in Q1, coupled with the ongoing projects and the favorable market conditions in its target markets, suggest that it is well-positioned for continued success. With the record 2024 U.S. Army Corps of Engineer’s budget of $8.7 billion, GLDD is expected to benefit from a strong bid market, particularly in capital and coastal protection projects. This, along with the addition of two new ships to its fleet in 2025, bodes well for the company’s future operating results.
Investors interested in accessing the recommendations of the Forbes Investor newsletter, including GLDD, can subscribe to the publication for free. Analyst Julius Juenemann, CFA, who covers GLDD for the newsletter, believes that the company’s performance in Q1 and its strategic positioning in the market will likely exceed the current consensus view. With the potential for continued growth and profitability, GLDD’s shares could see further gains in the future as it continues to capitalize on new opportunities in the dredging and dock industry.
In conclusion, Great Lakes Dredge & Dock (GLDD) has reported strong quarterly results, with significant revenue growth driven by increased coastal protection and capital project activity. The company’s performance exceeded expectations, leading to a substantial increase in its shares. GLDD is well-positioned for future success with ongoing projects, a strong bid market, and the addition of new ships to its fleet. Investors looking for undervalued opportunities with significant upside potential may consider subscribing to the Forbes Investor newsletter, which includes GLDD as a recommended stock.
