Sterling Infrastructure (STRL) closed the latest trading day at $178.15, indicating a +0.36% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq added 1.24%.Market participants will be closely following the financial results of Sterling Infrastructure in its upcoming release. The company is forecasted to report an EPS of $1.32, showcasing a 1.54% upward movement from the corresponding quarte ...

Core Viewpoint - Sterling Infrastructure, Inc. (STRL) has demonstrated significant growth driven by its E-Infrastructure and transportation segments, positioning itself favorably in the infrastructure sector amid increasing demand for digital and physical infrastructure solutions [4][6][13]. Group 1: Financial Performance - Sterling's stock has surged 98.7% in 2024, reflecting strong market confidence and outpacing the broader Zacks Construction sector [10]. - The company generated $322.8 million in operating cash flow during the first nine months of 2024, allowing for strategic investments and share buybacks totaling $50.6 million [16]. - Sterling's trailing 12-month return on equity (ROE) stands at 27.52%, significantly higher than the industry average, indicating efficient management and strong shareholder returns [18]. Group 2: Revenue Growth and Segments - The E-Infrastructure segment contributed 45% of third-quarter 2024 revenues, with a year-over-year revenue surge of 90%, driven by demand for data centers [4][5]. - The transportation segment accounted for 38% of third-quarter revenues, with a 33.8% increase in revenues for the first nine months of 2024, supported by a $1.4 billion backlog in transportation projects [6][11]. - Federal infrastructure programs, such as the Infrastructure Investment and Jobs Act, have provided a strong tailwind for the transportation segment, enhancing revenue visibility into 2025 and beyond [6][13]. Group 3: Valuation and Market Position - Sterling is trading at a forward 12-month price-to-earnings (P/E) multiple of 26X, which is a 14.4% premium to the Zacks Engineering - R and D Services industry average of 22.73X [8]. - Analysts have set an average price target of $191.50 for Sterling, suggesting a potential upside of 14.6% from current levels, reflecting confidence in the company's growth prospects despite its premium valuation [20]. - The company's strategic focus on high-margin opportunities and robust backlog positions it favorably for sustained growth in the infrastructure sector [13][15].

Group 1: Sterling Infrastructure, Inc. (STRL) - Sterling Infrastructure specializes in E-Infrastructure, Building, and Transportation Solutions primarily in the United States [1] - The company has a Zacks Rank 1 (Strong Buy) and has seen a 5.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Sterling Infrastructure has a PEG ratio of 2.01 compared to the industry average of 2.07 and possesses a Growth Score of A [2] Group 2: Twilio (TWLO) - Twilio enables developers to build, scale, and operate real-time communications within software applications [2] - The company holds a Zacks Rank 1 and has experienced a 6.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Twilio has a PEG ratio of 0.73, significantly lower than the industry average of 1.77, and has a Growth Score of A [3] Group 3: YPF Sociedad Anonima (YPF) - YPF is an international energy company focused on the integrated business of hydrocarbons in Latin America, emphasizing efficiency, profitability, and responsibility [3] - The company carries a Zacks Rank 1 and has seen a substantial 43.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - YPF has a PEG ratio of 0.13 compared to the industry average of 0.57 and possesses a Growth Score of B [4]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Sterling Infrastructure (STRL) currently holding a Momentum Style Score of B [2] - The Zacks Rank system complements Style Scores, with STRL rated as 1 (Strong Buy), indicating potential for outperformance in the market [3] Group 2: Performance Metrics of Sterling Infrastructure - STRL shares have increased by 9.15% over the past week, outperforming the Zacks Engineering - R and D Services industry, which rose by 1.42% [6] - Over the last month, STRL's price change is 26.52%, significantly higher than the industry's 2.67% [6] - In the last quarter, STRL shares rose by 78.83%, and over the past year, they increased by 207.68%, while the S&P 500 only moved 7.61% and 33.32%, respectively [7] Group 3: Trading Volume and Earnings Outlook - STRL's average 20-day trading volume is 387,807 shares, indicating a bullish sign with rising stock prices [8] - In the past two months, two earnings estimates for STRL have increased, raising the consensus estimate from $5.66 to $5.96 [10] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions, reflecting positive earnings outlook [10] Group 4: Conclusion on Investment Potential - Given the strong performance metrics and positive earnings revisions, STRL is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a promising investment option [11]

Core Viewpoint - Sterling Infrastructure, Inc. (STRL) has experienced a significant stock price increase of 67.2% over the past three months, outperforming its industry and broader market indices, raising questions about its future investment potential [1]. Group 1: Company Overview - Sterling is a leading U.S. service provider in transportation, civil construction, and e-infrastructure solutions, benefiting from favorable trends in North America's infrastructure market due to increased government funding and private sector investments [2]. - The E-Infrastructure Solutions segment has become the largest revenue driver for Sterling, accounting for 45% of total revenues in Q3 2024, with a 90% year-over-year revenue increase driven by demand for data centers [6][8]. Group 2: Financial Performance - Sterling's total backlog reached $2.37 billion, reflecting strong demand across its end markets and a shift towards large, multi-phase projects [8]. - The transportation segment, contributing 38% of total revenues, saw a 33.8% revenue increase in the first nine months of 2024, supported by robust federal funding initiatives [9][10]. - Operating cash flow for the first nine months of 2024 was $322.8 million, allowing the company to pursue strategic initiatives and share repurchases totaling $50.6 million year-to-date [11]. Group 3: Growth Drivers - The E-Infrastructure segment's growth is bolstered by advancements in artificial intelligence and technology, with over 50% of its backlog consisting of data center projects [6][7]. - Federal infrastructure programs, particularly the Infrastructure Investment and Jobs Act, have provided significant support for Sterling's transportation projects, enhancing revenue visibility into 2025 and beyond [10]. Group 4: Valuation and Market Position - STRL's stock is currently slightly overvalued compared to its industry, trading lower than some peers but higher than others, with forward P/E multiples indicating a premium valuation [16]. - Analysts have revised EPS estimates upward for 2024 and 2025, projecting year-over-year growth of 33.3% and 8.1%, respectively, reflecting confidence in the company's growth strategy [18].

Amid a broader post-election rally, quite a few stocks have hit fresh 52-week highs with Sterling Infrastructure (STRL)  being one that stands out in particular.Soaring over +120% year to date, STRL printed a fresh peak of $201 a share in Monday’s trading session and investors may be wondering if higher highs are ahead.Image Source: Zacks Investment Research Sterling’s Strong Q3 Results Mission-critical projects including data center projects have catapulted Sterling’s growth. Reporting its Q3 results last ...

Core Viewpoint - Sterling Infrastructure (STRL) has shown significant stock performance, with a 23.2% increase over the past month and a 120.2% rise since the beginning of the year, outperforming both the Zacks Construction sector and the Zacks Engineering - R and D Services industry [1] Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $1.97 against a consensus estimate of $1.68 in its latest earnings report [2] - For the current fiscal year, Sterling Infrastructure is projected to achieve earnings of $5.96 per share on revenues of $2.16 billion, reflecting a 33.33% increase in EPS and a 9.69% increase in revenues [3] - The next fiscal year forecasts an EPS of $6.11 per share on revenues of $2.33 billion, indicating year-over-year changes of 2.52% in EPS and 7.74% in revenues [3] Valuation Metrics - The stock currently trades at a valuation of 32.5 times the current fiscal year EPS estimates, which is higher than the peer industry average of 23.3 times [7] - On a trailing cash flow basis, the stock trades at 30.1 times compared to the peer group's average of 17.9 times [7] - The PEG ratio stands at 2.17, suggesting that the company is not positioned among the top value stocks [7] Zacks Rank and Style Scores - Sterling Infrastructure holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates [8] - The stock has a Value Score of D, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of B [6][9] - The combination of a strong Zacks Rank and acceptable Style Scores indicates potential for the stock in the near future [9]

Financial Data and Key Metrics Changes - The company reported its Q3 2024 earnings, with a focus on financial performance and guidance for the upcoming quarters [3]. - Management may reference non-GAAP financial measures such as EBITDA and adjusted earnings, which are reconciled to GAAP measures [3]. Business Line Data and Key Metrics Changes - Specific details regarding the performance of various business lines were not provided in the available content [3]. Market Data and Key Metrics Changes - The company will provide a market outlook and full-year guidance during the call, indicating a focus on market conditions and performance expectations [3]. Company Strategy and Development Direction - The management team, including the CEO and CFO, will discuss the company's strategic direction and competitive positioning in the industry [3]. Management Comments on Operating Environment and Future Outlook - Management will address the operating environment and future prospects during the call, highlighting any challenges or opportunities [3]. Other Important Information - The call includes a safe harbor statement regarding forward-looking statements and risk factors that could affect projections [3]. Q&A Session Summary - The Q&A session will follow the management presentations, allowing analysts and investors to ask questions regarding the company's performance and outlook [3].

Financial Performance - The Company reported revenues of $593.7 million for Q3 2024, an increase of $33.4 million, or 6.0%, compared to Q3 2023, driven by a $34.3 million increase in Transportation Solutions[84]. - Gross profit for Q3 2024 was $129.8 million, a 41.3% increase compared to Q3 2023, with a gross margin of 21.9%[86]. - For the nine months ended September 30, 2024, revenues reached $1.62 billion, an increase of $130.7 million, or 8.8%, compared to the same period in 2023[85]. - Total revenues for Q3 2024 were $593.7 million, an increase of $33.4 million, or 6.0%, compared to Q3 2023 revenues of $560.3 million[97]. - Operating income for Q3 2024 was $87.5 million, or 14.7% of revenue, compared to $57.1 million, or 10.2% of revenue, in Q3 2023[97]. - The gross margin for the nine months ended September 30, 2024, improved to 19.8%, up from 16.5% in the same period of 2023, driven by higher volume and improved project margin mix[87]. Backlog and Awards - The Company's backlog was $2.06 billion as of September 30, 2024, slightly down from $2.07 billion at December 31, 2023, with an increased backlog margin of 16.8%[82]. - Unsigned awards totaled $319.6 million at September 30, 2024, up from $303.2 million at December 31, 2023, contributing to a combined backlog of $2.37 billion[83]. Segment Performance - E-Infrastructure Solutions segment revenues increased by $10.0 million, or 3.9%, to $263.9 million in Q3 2024, while revenues for the nine months ended September 30, 2024, decreased by $30.2 million, or 4.2%, to $689.7 million[98][99]. - Transportation Solutions segment revenues rose by $34.3 million, or 17.7%, to $227.3 million in Q3 2024, and increased by $153.8 million, or 33.8%, to $609.0 million for the nine months ended September 30, 2024[101]. - Building Solutions segment revenues decreased by $10.8 million, or 9.5%, to $102.6 million in Q3 2024, primarily due to lower commercial volume[103]. Cash Flow and Financial Position - Net cash provided by operating activities for the nine months ended September 30, 2024, was $322.8 million, a decrease from $331.2 million in the same period of 2023[109]. - Total cash and cash equivalents increased to $648.1 million as of September 30, 2024, compared to $471.6 million at the end of 2023[108]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $62.3 million, an increase from $25.6 million in the same period of 2023[111]. - Net cash used in financing activities was $84.0 million for the nine months ended September 30, 2024, compared to $81.4 million in the prior year[113]. - The financing cash outflow included $50.6 million for common stock repurchase, $19.7 million for term loan repayments, and $13.4 million for withholding taxes on equity awards[113]. Strategic Focus and Market Outlook - The Company anticipates continued strong demand in E-Infrastructure Solutions, particularly in data centers and electric vehicle sectors, supported by federal investment initiatives[77]. - Transportation Solutions is benefiting from the Infrastructure Investments and Jobs Act, which includes approximately $643 billion in funding for transportation programs, leading to increased bid activity[78]. - The Building Solutions segment is experiencing a slowdown in residential demand, particularly in the Dallas market, with expectations of re-acceleration in 2025[79]. - The company plans to explore additional revenue growth and capital alternatives to strengthen its financial position and leverage opportunities in civil infrastructure and E-infrastructure markets[114]. Expenses and Taxation - General and administrative expenses for Q3 2024 were $30.7 million, or 5.2% of revenue, up from $25.2 million, or 4.5% of revenue, in Q3 2023[89]. - The effective income tax rate for Q3 2024 was 26.4%, with an anticipated full-year rate of approximately 24%[94]. Debt and Interest Rate Sensitivity - As of September 30, 2024, the company had $323.8 million in variable rate debt, with a potential interest expense fluctuation of approximately $3.2 million per year for a 100-basis point change in interest rates[118]. - The company held cash and cash equivalents of $648.1 million as of September 30, 2024, with a potential interest income fluctuation of approximately $6.5 million per year for a 100-basis point change in interest rates[118]. Joint Ventures and Operational Challenges - Approximately $174 million of construction work remains on unconsolidated joint venture contracts, with the company's proportionate share being about $85 million[115]. - Inflation and supply chain volatility have led to increased costs in operations, affecting general and administrative expenses[120][121]. - The company is not aware of any situations requiring it to fulfill responsibilities of joint venture partners under joint and several liability agreements as of September 30, 2024[115].

Sterling Infrastructure (STRL) came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.68 per share. This compares to earnings of $1.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.26%. A quarter ago, it was expected that this civil construction company would post earnings of $1.43 per share when it actually produced earnings of $1.67, delivering a surprise of 16.78%.Over the last ...