Wednesday, August 5, 2020

Great Lakes Dredge & Dock (GLDD)

A Solid Quarter in COVID-19 Era; Increasing Price Target

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only's operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2Q2020 operating results were slightly ahead of expectations due to strong execution. Total revenue of $167.9 million was ahead by ~$7 million and profitability was slightly higher than expected. Gross profit of $33.0 million was $2.4 million above our estimate of $30.6 million, and gross margin improved to 19.7%, which was above our estimate of 19.0%.

Maintaining 2020 EBITDA estimate of $159.0 million due to the positive dredging market outlook. Our 2020 EBITDA is about 17% higher than 2019 EBITDA of $135.6 million. Similar to last year, 1Q2020 will be the strongest quarter. While revenue and gross margin moderated in 2Q2020 and are likely to moderate over the rest of the year due to ...

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report.  NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.