The company earned $45.7 million, or $1.10 a share, in the quarter, compared with $40.7 million, or 98 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of $1.21 a share in the most recent quarter.
Third-quarter revenue rose 9% from a year ago to $941.7 million.
For 2006, the company expects earnings of $2.25 a share to $2.45 a share, contingent on the amount of work the company is able to complete in the fourth quarter, which can vary significantly due to the onset of winter weather conditions and certain heavy construction division projects reaching the company's profit recognition threshold. Analysts are expecting earnings of $2.68 a share.
For 2007, Granite said the preliminary outlook for the branch division is extremely positive, driven by a record backlog of work going into the year as well as strong margin performance. The company said revenue and backlog for HCD is likely to decrease in 2007 as it continues to focus on execution of the existing backlog as well as operational improvements.
The construction business, which contributes 86% to the total quarterly revenue, rose 6.9% to $808.3 million from a year ago. Material sales business revenue increased 23.8% to $133.4 million.
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