Tutor Perini (NYSE: TPC) reported Q2 EPS of $0.37, $0.04 worse than the analyst estimate of $0.41. Revenue for the quarter came in at $1.28 billion versus the consensus estimate of $1.24 billion.

• Strong operating cash flow of $92.2 million, the highest second-quarter result since the merger in 2008
• Revenue of $1.3 billion in Q2-20, up 13% Y/Y, driven by 20% Y/Y growth on Civil segment projects
• Double-digit revenue growth YTD across all segments despite COVID-19 impacts
• Diluted earnings per share (“EPS”) of $0.37 in Q2-20, vastly improved Y/Y
• Backlog remains robust at $10.0 billion with several large Civil segment projects bidding in the second half of 2020
• Affirming 2020 EPS guidance of $1.80 to $2.10

GUIDANCE:

Tutor Perini sees FY2020 EPS of $1.80-$2.10, versus the consensus of $1.95.

“We delivered solid results for the second quarter and first half of 2020, highlighted by the largest second-quarter operating cash result since the merger in 2008 and double-digit revenue growth year-to-date across all segments,” commented Ronald Tutor, Chairman and Chief Executive Officer. Tutor continued, “Favorable execution on our large infrastructure projects is driving our strong revenue and earnings growth. Importantly, we produced these solid results despite the impacts of the COVID-19 pandemic. Finally, we have made good progress toward settlements of disputes with project owners and anticipate additional settlements and associated cash collections later this year and next year.”

As mentioned above, the COVID-19 pandemic reduced the Company’s revenue, income from construction operations and diluted EPS for the second quarter of 2020 by an estimated $130 million, $9 million and $0.13, respectively. Through the first half of 2020, we estimate that the COVID-19 impacts were $190 million, $12 million and $0.17, respectively. The vast majority of the Company’s projects, especially in the Civil segment, have been designated as essential business, which allows the Company to continue its work on those projects. However, due to the fluidity of the COVID-19 pandemic, the Company is unable at this time to accurately predict the pandemic’s future impact on the Company’s business, financial condition or performance.

Nonetheless, based on the Company’s results to date in 2020 and its current outlook for the remainder of the year, the Company is affirming its EPS guidance and still expects EPS to be in the range of $1.80 to $2.10. Earnings in 2020 are expected to be weighted more heavily to the second half of the year due to the anticipated continued progress of large infrastructure projects, as well as typical business seasonality.

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