Core Viewpoint - Sterling Infrastructure, Inc. has amended its operating agreement with Road and Highway Builders, LLC, changing the reporting of RHB's results under GAAP without affecting its contribution to Sterling's consolidated net income [1][4]. Group 1: Ownership and Agreement Changes - Sterling has held a 50% ownership interest in RHB since 2012, with Rich Buenting owning the other 50% [2]. - The amendment addresses the ownership structure in the event of Mr. Buenting's death or disability, providing four alternatives for the future of RHB [2]. Group 2: Financial Reporting Changes - Prior to the amendment, RHB's assets and liabilities were fully consolidated into Sterling's financial statements, with Mr. Buenting's interest reported as a liability [3]. - Following the amendment, Sterling will no longer consolidate RHB's results, and its interest will be presented on one line in the consolidated balance sheet [4]. - Starting in 2025, 50% of RHB's operating income will be reported on one line in Sterling's consolidated statements, and RHB's revenue will not be included in Sterling's consolidated revenue [5]. Group 3: Financial Expectations - RHB's revenue is projected to be between $230 million and $240 million in 2024, while its standalone backlog is estimated to be between $425 million and $475 million at the end of the year [5].

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].