VMC - Granite Construction: A Deeper Look At Heavy Civil Accounting Return To Conservatism And The Potential Upside Post 10-K Filing
Granite Construction (GVA) has been in a penalty box and the stock has lost approximately two-thirds of its value since the middle of the last year, when the company announced hefty charges in its heavy civil business. Most of the recent charges and problems can be traced to unconsolidated large project in the company’s heavy civil business that were bid prior to 2017 and where the company is a minority partner along with other Engineering and Construction companies.
Rest of the business is doing well with strong order trend and higher margin backlog.