Construction company Tutor Perini Corp (NYSE:TPC) has gone vertical since Trump won the Presidential election. Reason: The President-elect’s assurance that he will rebuild the country’s infrastructure.
The company’s civil segment specializes in public works construction and the repair, replacement and reconstruction of infrastructure, including the construction and rehabilitation of highways, bridges and mass-transit systems.
In his acceptance speech Trump said he will build highways, bridges, airports, tunnels, schools, hospitals and infrastructure, thereby also generating employment for millions of people.
Tutor shares surged 11.24% on Monday to close at $29.20 on volume of 1.98 million.
Technically, the stock staged a breakout on November 9, pushing through the 20-day, 50-day and 200-day moving averages in one fell swoop and on high volume.
The stock has gained every day since then, and is up 47% from the close on November 8.
On the weekly chart, the stock has penetrated through the long term resistance line of $26.
Clearly, it is in an uptrend.
Tutor Perini Corp (NYSE:TPC) misses estimates in its third quarter
For its third quarter, TPC reported EPS of $0.57, which missed estimates by $0.05, and revenue of $1.33 billion, which too missed by $50 million and was down by 0.7%.
“Our third quarter results reflect solid operating performance in line with our expectations. Importantly, we have made substantial progress in cash collections,” commented Ronald Tutor, Chairman and Chief Executive Officer, however. “All three segments delivered improved quarterly profits compared to last year, with the Civil segment contributing a dominant share of operating income, as usual. The Civil and Building segments each delivered strong operating margins for the quarter.”
A highlight of the quarter was the generation of operating cash flow of $89.6 million, the best quarterly performance since the fourth quarter of 2011.
Order backlog as of September 30, 2016 was $6.7 billion compared to $7.5 billion as of December 31, 2015.
Tutor Perini Corp (NYSE:TPC) outlook for 2016
For the full year 2016, Tutor expects revenue in the range of $5.1 billion to $5.2 billion and diluted EPS in the range $1.90 and $2.00.
“Following many years of underinvestment causing badly deteriorating highways, bridges, et cetera, there is no question that our political leadership appears to have the will to significantly increase this spending,” said Tutor on the conference call, referring to the campaigns of the presidential candidates then in progress and the focus on infrastructural spending by both sides.