Imperial Capital maintained an Outperform rating on Great Lakes Dredge & Dock (NASDAQ: GLDD), and cut the price target to $5.50 (from $6.50), following a review of the company's 4Q. GLDD reported adjusted EBITDA of $22.2mn, missing the Street's $25.8mn estimate. Revenue was $222.6mn, up -8.6% yoy. Management did not provide FY16 guidance.

Analyst Scott Levine commented, "On its 4Q15 earnings conference call on 2/23/16, GLDD did not provide FY16 guidance, which was not surprising, as the company withdrew guidance last quarter, due to a series of project challenges in its Environmental & Remediation (E&R) segment, which continued to weigh on its earnings in 4Q15. However, the dredging operations continue to perform well (backlog is up 14% year-over-year [yoy], and gross margins reached a recent high of 19.3%), and management hopes to reach breakeven in EBITDA in E&R in FY16, driven by more disciplined and efficient contract execution. We are lowering our FY15-16 EBITDA estimates to $83mn and $105mn, respectively, primarily to reflect higher SG&A, though we note that a recovery in E&R consistent with GLDD’s expectations (however, given recent results, we are somewhat skeptical) could yield meaningful upside to our estimates."

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Shares of Great Lakes Dredge & Dock closed at $3.50 yesterday.