The CEO of the company purchased 10,000 shares on August 5th. Those are the only analyst firms I can find that have chimed in around Great Lakes Dredge & Dock Corporation so far in 2022. Alliance Global Partners maintained their Buy rating and $17 price target on GLDD in mid-March, two weeks ago, Noble Financial took the same action with an identical price target. There has been very little in the way of analyst activity around this stock in 2022. Our new build program is on schedule with the new hopper dredge, the Galveston Island, expected to be ready for operations in the first half of 2023 and her sister ship expected to be ready for operations in 2025." Analyst Commentary & Balance Sheet: We continue to see increased market demand backed by strong government support and development of new LNG export facilities that we expect will benefit Great Lakes and our market position in the upcoming years. Ending on a bright note, management mentioned the following positives within their earnings press release. In addition, adjusted EBITDA was a positive $10.2 million in the second quarter despite very adverse conditions. Looking for some good news on Great Lakes Dredge & Dock Corporation, the company did report it won $107 million worth of new awards in late August that will help its backlog. The company is accounting for these higher costs within new bids.įinally, the company's order backlog shrunk to $373.8 million at the end of the quarter from $454.4 million at the same point in 2021. Finally, higher-than-anticipated inflation impacted the cost of labor, operating supplies, and dry dockings in the quarter. However, until resolved, revenue and profit recognition is delayed. Management is renegotiating agreements with their clients on these projects to reflect these conditions. In addition, three of the company's larger projects encountered differing and unanticipated site conditions which negatively impacted production. This extended completion timelines and delayed commencement of subsequent projects as well. This caused several vessels to have to stop operating and seek shelter. And speaking of the perfect storm, several of the company's projects were impacted by unseasonably rough sea conditions along the east coast. This caused both dredges to be delayed several weeks mobilizing to their projects. The biggest hit to margins and profits it appears to be the delay to their dredging ships Liberty Island and Carolina dry dockings which were caused by supply chain challenges. Management cited ' supply chain delays, inflationary pressures, adverse weather conditions combined with some atypical dredging project challenges' for the poor quarter. Going through the press release that accompanied these tepid numbers, it appears Great Lakes Dredge & Dock Corporation hit the perfect storm of adverse conditions in the quarter. Revenues fell some 12% on a year-over-year basis to $149.4 million, missing expectations by nearly $35 million. The company had a GAAP loss of six cents a share when the consensus was looking for a 20 cents a share profit.
Great Lakes Dredge & Dock Corporation badly missed expectations, to put it mildly. The stock currently trades for around $9.50 a share and sports an approximate $620 million market capitalization.Ī good portion of the decline in the stock occurred after the company posted second quarter numbers on August 2nd. The company also provides coastal protection and other services to both the private and public sectors through a fleet of approximately 35 core ships and various other support vessels. These services include but are not limited to port expansion projects coastal restoration and land reclamations trench digging for pipelines, tunnels, and cables and other dredging related to the construction of breakwaters, jetties, canals, and other marine structures. Great Lakes Dredge & Dock is based in Houston and primarily provides dredging services throughout the United States. Better times ahead? An analysis follows below. The shares did see some insider buying in August, the first for 2022 to date. Despite this, the stock is down some 40% over the past year.
Great Lakes Dredge & Dock Corporation ( NASDAQ: GLDD ) should be a beneficiary of the large amount of funding the government has approved for infrastructure under the current administration. We tee up North America's largest dredging concern in today's analysis. Everything worth fighting for unbalances your life."― Alain de Botton There is no such thing as work-life balance. Akarawut Lohacharoenvanich/iStock via Getty Images
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