GR Engineering (ASX:GNG) share price storms 7% higher today on FY22 guidance update

The company’s shares are closing in on their multi-year high…

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a group of five engineers wearing hard hats and some in high visibility vests raise their arms in happy celebration atop a building site with construction and equipment in the background.

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The GR Engineering Services Ltd (ASX: GNG) share price is racing higher on Monday. This comes after the engineering company announced an update on its full-year revenue guidance for FY22.

During late morning trade, GR Engineering shares are fetching $1.885, up 7.10%.

GR Engineering eyes strong growth for FY22

Investors are driving up GR Engineering shares following the release of upgraded revenue guidance by the company.

In its statement, GR Engineering advised that favourable trading conditions have continued to run into the new financial year.

As a result, the company upgraded its revenue guidance for the period ending 30 June 2022. It expects its full-year revenue to come in between $540 million and $560 million, reflecting a sizeable increase.

Originally, GR Engineering had forecast FY22 revenue for the same period to be around $440 million to 460 million.

The company seems to have avoided the impact of the recent constriction of the labour market in Australia. It says it has managed to navigate its way through COVID-19, increasing its workforce to meet demand and deliver on projects.

GR Engineering managing director Geoff Jones touched on the company’s improved revenue guidance, saying:

GR Engineering is forecasting significant growth on the record results achieved in FY21. The pipeline of ongoing and near-term work is growing and provides increased revenue and earnings visibility for both FY22 and FY23, enhancing GR Engineering’s ability to deliver returns to its shareholders.

GR Engineering share price summary

Over the past 12 months, the GR Engineering share price has soared, representing an 85% gain for shareholders. Throughout the year, the company’s shares have continued on an upwards trajectory.

It’s worth noting that the GR Engineering share price is currently a whisker away from its multi-year high of $1.96.

Based on today’s price, GR Engineering commands a market capitalisation of roughly $302 million with approximately 160.88 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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