Civil infrastructure construction company Sterling Infrastructure (NASDAQ: STRL) will be reporting results tomorrow after market hours. Here’s what investors should know.
Sterling missed analysts’ revenue expectations by 6.1% last quarter, reporting revenues of $498.8 million, up 2.6% year on year. It was a strong quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations.
Is Sterling a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sterling’s revenue to decline 7.1% year on year to $409.1 million, a reversal from the 9.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.45 per share.
Analysts covering the company have generally 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 four 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 12.7%, beating analysts’ expectations by 2.2%, and MasTec reported revenues up 6%, topping estimates by 4.9%. EMCOR’s stock price was unchanged after the results, while MasTec was up 5.4%.
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 13% on average over the last month. Sterling is up 51.9% during the same time and is heading into earnings with an average analyst price target of $198.33 (compared to the current share price of $165.77).
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