Civil infrastructure construction company Sterling Infrastructure (NASDAQ: STRL) will be announcing earnings results this Monday after market hours. Here’s what investors should know.
Sterling beat analysts’ revenue expectations last quarter, reporting revenues of $755.6 million, up 51.5% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
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 37.4% year on year, a reversal from the 2.1% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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, some have already reported their Q1 results, giving us a hint as to what we can expect. EMCOR delivered year-on-year revenue growth of 19.7%, beating analysts’ expectations by 10.3%, and MasTec reported revenues up 34.5%, topping estimates by 10.3%. EMCOR traded up 3.2% following the results while MasTec was also up 5.8%.
Read our full analysis of EMCOR’s results here and MasTec’s results here.
There has been positive sentiment among investors in the construction and engineering segment, with share prices up 9.4% on average over the last month. Sterling is up 34.7% during the same time and is heading into earnings with an average analyst price target of $509.80 (compared to the current share price of $530.50).
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