BLACK RIVER FALLS - Tutor Perini Corporation (NYSE: NYSE:TPC) announced that its subsidiary, Lunda Construction Company, has secured a $53.6 million contract from the City of St. Paul, Minnesota, for the construction of the Kellogg/3rd Street Bridge. The project involves building a new 2,100-foot-long bridge featuring four traffic lanes and dual barrier-separated trails for bicycles and pedestrians.
Construction is scheduled to start in the third quarter of 2024, with the aim of reaching substantial completion by the fall of 2027. The contract's value is expected to be included in Tutor Perini's backlog during the second quarter of 2024.
This infrastructure initiative by the City of St. Paul is part of an effort to modernize and enhance transportation facilities in the region. The new bridge will replace the existing structure and is designed to improve connectivity and safety for both vehicular and non-vehicular traffic.
Tutor Perini Corporation, the parent company, is a recognized entity in the construction industry, known for its comprehensive range of services including general contracting, design-build, and project management. The company has a history dating back to 1894 and has built a reputation for completing large and complex projects on schedule and within budget.
This announcement is based on a press release statement from Tutor Perini Corporation.
In other recent news, Tutor Perini Corporation has been making significant strides in its financial performance and prospects. The company delivered strong first-quarter results, exceeding expectations with a 35% growth in consolidated revenue and significant gains in operating margins and earnings per share. The company also maintained its 2024 earnings per share guidance of $0.85 to $1.10.
UBS and B.Riley have both upgraded Tutor Perini's stock, citing a recovery in earnings and improved financials. UBS upgraded the stock from Neutral to Buy, raising the price target to $27.00, while B.Riley increased the price target to $26.00. Both firms anticipate improved earnings and cash flow, driven by factors such as successful claims settlements, dispute resolutions, and management changes.
Tutor Perini also completed the redemption of $500 million in senior notes, financed through a new offering of $400 million senior notes due in 2029 and existing cash reserves. This strategic debt reduction and refinancing effort is part of Tutor Perini's broader strategy to manage its debt profile effectively.
A leadership transition is also on the horizon, with current President, Gary Smalley, set to succeed Ron Tutor as CEO in 2025. These are recent developments in the financial trajectory of Tutor Perini Corporation.
InvestingPro Insights
As Tutor Perini Corporation (NYSE: TPC) gears up for the Kellogg/3rd Street Bridge project in St. Paul, Minnesota, the company's financial health and market performance are pivotal for investors tracking the progress of this major infrastructure initiative.
With a market capitalization of $1.15 billion, Tutor Perini's size speaks to its ability to undertake significant projects such as this one. The company's robust revenue growth is evident, with a substantial increase of 35.13% in quarterly revenue growth for Q1 2024, reflecting a positive trajectory as it enters into new contracts and expands its backlog.
Despite a challenging P/E ratio currently standing at -10.6, Tutor Perini's strong revenue figures, including $4.15 billion in revenue over the last twelve months as of Q1 2024, demonstrate its significant scale in the construction sector. Moreover, the company's stock has experienced remarkable momentum, with a 234.31% one-year total price return, signaling strong investor confidence and market interest in Tutor Perini's growth potential.
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