Tutor Perini (NYSE: TPC) reported Q4 EPS of ($1.71), $1.82 worse than the analyst estimate of $0.11. Revenue for the quarter came in at $1.18 billion versus the consensus estimate of $1.34 billion.

Revenue for the fourth quarter and full year of 2019 was $1.2 billion and $4.5 billion, respectively, both of which are comparable to revenue for the same periods last year. Revenue for both periods of 2019 was favorably impacted by higher volume on certain Civil segment projects but was mostly offset by a $123.9 million revenue impact associated with the SR 99 charge addressed below. Despite the SR 99 revenue reduction, Civil segment revenue increased 12% in 2019.

As previously disclosed in a Current Report on Form 8-K filed on December 20, 2019, the Company recognized in the fourth quarter of 2019 an after-tax charge of $119.4 million (an impact of $2.38 per diluted share) as a result of an adverse jury verdict in the case related to construction of the Alaskan Way Viaduct Replacement Project (“SR 99”) by a joint venture for which the Company holds a 45% share as a minority partner. Including the impact of this charge, net loss attributable to the Company for the fourth quarter of 2019 was $86.1 million, or a $1.71 loss per diluted share (“LPS”), compared to net income attributable to the Company of $49.4 million, or $0.98 of earnings per diluted share (“EPS”), for the fourth quarter of 2018. For 2019, including the after-tax goodwill impairment charge of $330.5 million (an impact of $6.58 per diluted share), net loss attributable to the Company was $387.7 million, or a $7.72 LPS, compared to net income attributable to the Company of $83.4 million, or $1.66 of EPS, for 2018. For 2019, adjusted net loss attributable to the Company and adjusted LPS, which are non-GAAP financial measures and exclude the impact of the impairment charge (but include the impact of the SR 99 charge), were $57.2 million and $1.14, respectively. Non-GAAP financial measures are reconciled to the most nearly comparable GAAP financial measures in the financial tables below. Aside from the impact of the charges mentioned above, the decrease in EPS for 2019 was principally due to net unfavorable adjustments on certain projects in the Specialty Contractors segment (none of which were individually material), which impacted gross profit for 2019 by $41.5 million, mostly offset by a gain of $37.8 million resulting from the Company increasing its ownership interest in a Civil segment joint venture.

Outlook and Guidance

“Though I am not happy with the charges we were required to take in 2019, particularly with the unfavorable SR 99 jury verdict and the underperformance of our Specialty Contractors group, I am encouraged by our strong operating cash generation and backlog growth for the year,” said Ronald Tutor, Chairman and Chief Executive Officer. “Our focus in 2020 will be on delivering revenue and earnings growth from our near-record backlog and improving our operating performance in the Specialty Contractors group. We will also pursue various new high-margin project opportunities and continue to make progress in resolving and collecting our unbilled receivables.”

The Company anticipates strong revenue growth across all segments in 2020 and substantially improved operating margin in the Specialty Contractors segment. For 2020, the Company is establishing its initial EPS guidance at a range of $1.80 to $2.10. As in previous years, earnings in 2020 are expected to be weighted more heavily in the second half of the year due to the anticipated timing of large project activities, as well as typical business seasonality.

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