Civil infrastructure construction company Sterling Infrastructure (NASDAQ: STRL) will be announcing earnings results this Wednesday afternoon. Here’s what you need to know.
Sterling beat analysts’ revenue expectations last quarter, reporting revenues of $1.17 billion, up 90.1% year on year. It was a stunning quarter for the company, with full-year EBITDA and full-year revenue guidance exceeding analysts’ expectations.
Is Sterling a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sterling’s revenue to grow 72.8% year on year, improving from the 16% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sterling has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Sterling’s peers in the construction and engineering segment, only Comfort Systems has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 53.7%. The stock was down 10% on the results.
Read our full analysis of Comfort Systems’s earnings results here.In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the construction and engineering stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Sterling is down 26.4% during the same time and is heading into earnings with an average analyst price target of $836.71 (compared to the current share price of $366.65).
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