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Sterling (STRL) Q3 Earnings Report Preview: What To Look For

STRL Cover Image

Civil infrastructure construction company Sterling Infrastructure (NASDAQ:STRL) will be reporting results tomorrow after market hours. Here’s what to expect.

Sterling beat analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $582.8 million, up 11.6% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and optimistic earnings guidance for the full year.

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 grow 8.5% year on year to $608 million, slowing from the 13.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.68 per share.

Sterling Total Revenue

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 three times over the last two years.

Looking at Sterling’s peers in the construction and engineering segment, some have already reported their Q3 results, giving us a hint as to what we can expect. MasTec posted flat year-on-year revenue, missing analysts’ expectations by 5.4%, and EMCOR reported revenues up 15.3%, falling short of estimates by 2.5%. MasTec’s stock price was unchanged after the results, and EMCOR’s price followed a similar reaction.

Read our full analysis of MasTec’s results here and EMCOR’s results here.

Investors in the construction and engineering segment have had steady hands going into earnings, with share prices flat over the last month. Sterling is up 2.7% during the same time and is heading into earnings with an average analyst price target of $139.50 (compared to the current share price of $151.58).

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