Wednesday, May 05, 2021

Great Lakes Dredge & Dock (GLDD)
Unexpected COVID-19 Hit, But Year On Track

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

1Q2021 Results softer than expected due to higher costs and downtime/delays due to COVID-19. Gross profit of $33.1 million was $3.1 million below our estimate of $36.2 million, and gross margin fell back to 18.6%, mainly due to 23 days of downtime from COVID-19, unexpected downtime and higher direct costs of testing/quarantining personnel. Lost revenue totaled $3.9 million and costs were more than $10 million higher. Adjusting for direct costs of $4.3 million, gross profit would have approximated $37.4 million, or gross margin of 21%, which would have been more consistent with expectations.


Fine tuning 2021 EBITDA estimate.  Slow start, but 2H2021 should recover. Our EBITDA estimate of $146.1 million is slightly lower than our previous estimate of $150.0 million …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.