Tutor Perini (TPC) to report earnings tomorrow: here is what to expect

What happened

Tutor Perini, a general contracting company, will report earnings this Wednesday after market hours. Last quarter it reported revenues of $1.64 billion, up 19.2% year on year, beating analysts' revenue expectations, and its full-year earnings-per-share guidance exceeded analysts' expectations.

Confirmed

Global impact / market context

Investors use earnings to judge whether a company's profit is improving. Tutor Perini beat revenue expectations last quarter, but the market expects growth of 15% this quarter, slower than the 30.7% rise a year earlier, so the report will show whether demand is holding up.

Analyst inference

Construction peers MYR Group and APi already reported year-on-year revenue growth of 32.5% and 22.5%, both beating estimates. Those peer results give a reference point for judging whether Tutor Perini's own revenue growth looks strong or weak by comparison.

Analyst inference

What to watch

1. Analysts have generally reconfirmed their estimates over the last 30 days, which suggests they expect the business to stay the course heading into the earnings report. Confirmed
2. Watch whether revenue grows near the expected 15%, because Tutor Perini has missed Wall Street's revenue estimates multiple times over the last two years, which means expectations have often been too high. Analyst inference
3. Compare profit per sale and full-year earnings guidance with last quarter's beat, since weaker profit per sale or trimmed guidance would suggest costs are rising faster than revenue. Analyst inference

Evidence

• stockstory.org