Civil infrastructure construction company Sterling Infrastructure (NASDAQ: STRL) will be announcing earnings results this Monday after the bell. Here’s what to look for.
Sterling beat analysts’ revenue expectations by 5.4% last quarter, reporting revenues of $430.9 million, down 2.1% year on year. It was a stunning quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations 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.
This quarter, analysts are expecting Sterling’s revenue to decline 4.9% year on year to $554.4 million, a reversal from the 11.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.25 per share.
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 four times over the last two years.
Looking at Sterling’s peers in the construction and engineering segment, some have already reported their Q2 results, giving us a hint as to what we can expect. EMCOR delivered year-on-year revenue growth of 17.4%, beating analysts’ expectations by 4.9%, and MasTec reported revenues up 19.7%, topping estimates by 4.2%. EMCOR traded down 2.3% following the results while MasTec was also down 8%.
Read our full analysis of EMCOR’s results here and MasTec’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 11.1% during the same time and is heading into earnings with an average analyst price target of $256.33 (compared to the current share price of $263.30).
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