Why Did Granite Construction Stock Plunge 10.19% Ahead of Q1 Earnings?

On May 1, 2025, Granite Construction's stock experienced a significant drop of 10.19% in pre-market trading, reflecting a notable shift in investor sentiment.

Granite Construction, a key player in infrastructure development, has been projected to exhibit robust growth in Earnings Per Share (EPS) over the coming years, with an average annual increase of 21.98%. This forecast underscores the company's strong financial performance and strategic initiatives.

Despite the anticipated EPS loss, Granite's stock has shown resilience, reaching a high of $81.10. This indicates investor confidence in the company's long-term strategy and its ability to navigate market challenges.

Granite Construction is set to report its Q1 earnings, with analysts expecting revenue growth of 5% year on year to $705.9 million. However, the company has missed Wall Street’s revenue estimates twice over the last two years, which may contribute to the recent stock decline.

Granite Construction has secured a $38 million contract for roadside safety and infrastructure enhancement, demonstrating its commitment to improving public infrastructure and safety. This contract highlights the company's ongoing efforts to secure significant projects and expand its market presence.

Granite Construction has also published its annual sustainability report, highlighting a $28 million investment to enhance energy efficiency and setting a record for the safest year in the company's history. This report underscores the company's dedication to sustainability and safety, which are crucial for long-term growth and investor confidence.