Shares of Tutor Perini Corporation TPC rose around 4.4% and closed at $16.33 yesterday after the company announced that it has secured two civil projects. The building & construction company has won the first contract from the Delaware Department of Transportation (DelDOT), while the other one was granted by the government of the Federated States of Micronesia. Together, the projects were valued around at $102.4 million.
The larger contract, worth approximately $69.8 million, was awarded by DelDOT. Its scope of work includes construction of the initial, northernmost 3.4-mile section of the four-lane U.S. 301 toll road, including interchanges, ramps and other structures. Work is expected to commence in Jan 2016 and substantial completion is expected by late 2018. The contract value will be included in Tutor Perini’s fourth-quarter backlog.
The smaller contract, valued at approximately $32.6 million, was awarded to Tutor Perini’s Guam-based subsidiary, Black Construction by the government of the Federated States of Micronesia. Per the contract, the company will be responsible for the reformation of Runway 04/22. Tutor Perini will also work on the development of apron and taxiway surfaces at the Chuuk International Airport.
Work on this project is expected to commence in Jan 2016 too and substantial completion is expected by the end of 2017. The contract value was included in Tutor Perini’s third-quarter backlog.
In the third quarter of 2015, significant additions to backlog included an additional funding of $346 million for a technology research and development facility project in California, bringing the total value of the project to approximately $800 million; an electrical subcontract worth $72 million for an office building at Hudson Yards in New York; an additional funding of $69 million for a multi-unit residential project in Florida; and a highway project in Maryland valued at $60 million.
Sylmar, CA-based Tutor Perini Corporation is a leading civil and building construction company that offers diversified general contracting and design-build services to private clients and public agencies globally.
Tutor Perini currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Sterling Construction Co. Inc. STRL, Jiangsu Expressway Co. Ltd. JEXYY and Zhejiang Expressway Co. Ltd. ZHEXY. All these stocks carry a Zacks Rank #2 (Buy).
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