The GR Engineering Services Ltd (ASX: GNG) share price is on the move today. This comes after the engineering company announced an update on its full-year revenue guidance for 2021.
During morning trade, GR Engineering shares are swapping hands for $1.38, up 3.76%. In earlier trade, the company's shares had lifted by almost 7% before retreating to their current level.
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Projecting a record year
Investors are driving up GR Engineering shares following the release of upgraded earnings guidance.
In a statement to the ASX, GR Engineering advised revenue and margins have continued to improve in the second half. The constriction of the labour market in Australia has surprisingly not impacted the company. The business has managed to navigate its way through COVID-19, increasing its workforce to meet demand and deliver on projects.
As a result, FY21 revenue for the year ending 30 June, is expected to come in at between $370 million and $390 million. This represents more than an 8% lift from the previous revenue guidance of $340 million to $360 million.
GR Engineering noted it is focused on managing equipment deliveries in a timely manner despite international shipping delays.
Geoff Jones, GR Engineering managing director, touched on the company's performance, saying:
GR Engineering is projecting record FY21 revenue and EBITDA based on the year-to-date results and our current ongoing work. Given our project pipeline and near-term prospective work and continued strong cash generation, GR Engineering remains well placed to deliver returns to its shareholders through FY22 and FY23.
The company is scheduled to release its full-year results for the 2021 financial year on or around 24 August.
GR Engineering share price snapshot
During the past year, GR Engineering shares have moved on an upwards trajectory, slowly climbing to within reach of 2017 levels. The company's share price has delivered gains of almost 100% over the past 12 months and is up by around 13% year to date.
On today's price, GR Engineering commands a market capitalisation of roughly $222 million, with around 160 million shares outstanding.
