Granite Construction Shares Fall 18%

Granite Construction Inc.’s stock fell as much as 18% on doubts that the nation’s No. 1 highway contractor can maintain its earnings performance, analysts said. The construction contractor’s stock dropped $4.31 to close at $27.13 on the New York Stock Exchange. On Tuesday, the stock closed at a record high of $31.44. Investors are expressing concern about whether the company can sustain growth in the cyclical construction industry, analysts said. A cyclical stock can rise quickly when the economy is on the upswing and fall when the economy declines. Watsonville-based Granite earlier this month reported second-quarter earnings of $14.5 million, or 80 cents a share, up from $8.3 million, or 46 cents, a year earlier. The company had been expected to earn 48 cents, based on the average estimate of analysts surveyed by First Call Corp. Revenue rose 21% to $292.8 million.