Results: Great Lakes Dredge & Dock Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 17% higher than the analysts had forecast, at US$243m, while EPS were US$0.49 beating analyst models by 87%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Great Lakes Dredge & Dock after the latest results.

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Following last week's earnings report, Great Lakes Dredge & Dock's four analysts are forecasting 2025 revenues to be US$814.4m, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 4.4% to US$0.98 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$776.2m and earnings per share (EPS) of US$0.75 in 2025. So it seems there's been a definite increase in optimism about Great Lakes Dredge & Dock's future following the latest results, with a very substantial lift in the earnings per share forecasts in particular.

Check out our latest analysis for Great Lakes Dredge & Dock

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$15.00, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Great Lakes Dredge & Dock at US$17.00 per share, while the most bearish prices it at US$14.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2025. That would be a definite improvement, given that the past five years have seen revenue shrink 1.1% annually. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.7% annually. Although Great Lakes Dredge & Dock's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Great Lakes Dredge & Dock's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Great Lakes Dredge & Dock going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Great Lakes Dredge & Dock you should be aware of, and 1 of them can't be ignored.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.