Core Viewpoint - Sterling Infrastructure, Inc. (STRL) is positioned for strong growth driven by its focus on e-infrastructure and transportation markets, despite recent stock performance challenges [7][21]. Financial Performance - STRL reported Q3 2024 EPS of $1.97, a 56% increase year-over-year, exceeding the Zacks Consensus Estimate by 17.3% [1][2]. - Revenues for Q3 2024 were $593.7 million, slightly missing expectations by 1% [1]. - The company's backlog reached $2.1 billion, with a combined backlog of $2.37 billion, indicating strong future growth potential [1]. Segment Performance - E-Infrastructure Solutions accounted for 45% of Q3 2024 revenues, with data center projects making up over 50% of its backlog [8]. - The Transportation Solutions segment represented 38% of total revenues, benefiting from robust state and local funding and the Infrastructure Bill's allocation of $643 billion [9]. - The Building Solutions segment, which accounted for 17% of revenues, faces challenges in the residential construction market due to affordability concerns and high interest rates [10]. Market Position and Strategy - STRL has consistently surpassed earnings expectations, with an average surprise of 21.5% over the last four quarters [2][3]. - The company is strategically focused on high-margin projects and has established itself as a major player in the e-infrastructure market [7]. Valuation and Stock Performance - STRL stock has underperformed, losing 20% since the AI-related market selloff on January 27, 2025, and 39.7% from its 52-week high [12][15]. - The stock is currently trading at a forward P/E ratio of 18.98, above the industry average of 18.33 and its three-year median of 15.24, indicating a stretched valuation [15][16]. Future Outlook - The company is expected to benefit from increased capital expenditures in AI-related infrastructure, with major clients like Amazon and Meta planning significant investments [21]. - Despite the promising outlook, the heavy reliance on big tech contracts poses risks if there is a slowdown in AI-related spending [22].

Company Performance - Sterling Infrastructure (STRL) closed at $124.27, down 1.93% from the previous trading day, underperforming the S&P 500, which fell 0.43% [1] - Over the past month, STRL shares have decreased by 36.82%, significantly lagging behind the Construction sector's loss of 5.29% and the S&P 500's gain of 2.6% [2] Upcoming Earnings - The company is set to release its earnings report on February 25, 2025, with an expected EPS of $1.34, reflecting a 3.08% increase from the same quarter last year [3] - Revenue is forecasted to be $533.75 million, indicating a 9.83% increase compared to the same quarter last year [3] Analyst Sentiment - Recent revisions to analyst forecasts for Sterling Infrastructure are crucial as they indicate changing business trends, with positive revisions suggesting analyst optimism about the company's profitability [4] - The Zacks Rank system, which evaluates estimate changes, currently ranks Sterling Infrastructure at 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [6] Valuation Metrics - Sterling Infrastructure has a Forward P/E ratio of 19.62, which is slightly higher than its industry's Forward P/E of 19.46 [7] - The company holds a PEG ratio of 1.31, comparable to the industry average PEG ratio of 1.32 [8] Industry Context - The Engineering - R and D Services industry, part of the Construction sector, has a Zacks Industry Rank of 163, placing it in the bottom 36% of over 250 industries [9]

Core Viewpoint - Sterling Infrastructure, Inc. (STRL) has experienced a significant decline of 18% in the past month, contrasting with the broader market trends and underperforming compared to its industry peers [1][2]. Performance Overview - STRL's stock performance has sharply declined, while the Zacks Construction sector increased by 0.2% and the Zacks S&P 500 Composite gained 3.8% during the same period [1]. - The company has underperformed within its industry, lagging behind competitors like Dycom Industries, Inc. (DY), which gained 4.7% [2]. Technical Indicators - STRL is trading below its 50-day and 200-day simple moving averages (SMAs), indicating potential bearish momentum [5]. Revenue and Income Challenges - The building solutions segment saw a 10% drop in revenue and a 12% decline in operating income in Q3 2024, primarily due to a slowdown in the Dallas residential market [8]. - Prolonged higher interest rates, with the Fed holding rates at 4.25%-4.50%, could suppress residential construction activity, negatively impacting the company's growth and margins [9]. Sector Dependency Risks - STRL's over-reliance on data centers, which constitute over half of its e-infrastructure backlog, poses risks if there is a slowdown in AI-related infrastructure projects [10]. Valuation Concerns - STRL's forward 12-month P/E ratio is 21.49, higher than the industry average of 19.1 and above its three-year median of 15.1 [11]. - Despite a higher valuation reflecting growth potential, recent price declines may deter investors from buying at current levels [12]. Growth Catalysts - The E-Infrastructure segment accounted for 45% of total revenues in Q3 2024, surging 90% year over year due to demand from AI and cloud computing [13]. - The transportation segment, making up 38% of total revenues, reported a 33.8% increase in revenues in the first nine months of 2024, supported by federal infrastructure funding [14]. Backlog and Financial Position - STRL's backlog stands at $2.37 billion, with over half tied to data center developments, indicating strong future revenue visibility [15]. - The transportation backlog is $1.4 billion, reflecting ongoing demand for highway expansion and public infrastructure projects [17]. - The company generated $322.8 million in operating cash flow in the first nine months of 2024, with a conservative leverage profile and strong financial flexibility [18][19]. Analyst Sentiment - Analysts have revised earnings per share estimates for 2025 upward, reflecting expected 8.1% year-over-year growth [20]. - The average price target set by analysts is $191.50 per share, suggesting a 32.2% upside from the recent closing price [21]. Conclusion - Despite recent challenges, STRL remains fundamentally strong with a solid backlog and growth potential in e-infrastructure [23]. - The stock's recent decline and valuation concerns suggest caution, with a Zacks Rank 3 (Hold) indicating a potential wait for a better entry point [24].

Core Viewpoint - Sterling Infrastructure, Inc. is set to release its financial results for Q4 and the full year of 2024 on February 25, 2025, after market close [1] Financial Results Announcement - The company will host a conference call on February 26, 2025, at 9:00 am ET to discuss the financial results and the outlook for 2025 [2] - Interested participants can join the call by dialing (800) 836-8184 and are advised to call in ten minutes early [2] Webcast Information - A simultaneous webcast of the conference call will be available on the company's website, with an archived version accessible for thirty days [3] Company Overview - Sterling operates through subsidiaries in three segments: E-Infrastructure, Transportation, and Building Solutions, primarily in the U.S. [4] - E-Infrastructure Solutions focus on large-scale site development for various sectors including manufacturing and data centers [4] - Transportation Solutions encompass infrastructure projects for highways, bridges, and airports [4] - Building Solutions provide concrete foundations and plumbing services for residential and commercial projects [4] - The company emphasizes sustainability and community care as part of its operational strategy [4] Leadership Statement - CEO Joe Cutillo stated that the company builds and services infrastructure essential for economic functioning and growth [5]

Group 1 - Sterling Infrastructure (NASDAQ: STRL) experienced moderated topline growth in the second half of the year due to a significant decline in the building solution segment [1] - The building solution segment is expected to remain under pressure moving forward [1] Group 2 - The analysis reflects a focus on understanding and explaining the financial details of companies, particularly in the technology, industrial, and conglomerate sectors [1]

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Sterling Infrastructure (STRL) . This company, which is in the Zacks Engineering - R and D Services industry, shows potential for another earnings beat.This civil construction company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two ...

In the latest trading session, Sterling Infrastructure (STRL) closed at $196.58, marking a -1.98% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.53%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 0.22%.The civil construction company's shares have seen an increase of 14.68% over the last month, surpassing the Construction sector's gain of 4.6% and the S&P 500's gain of 2.69%.The investment community will be ...

Sterling Infrastructure, Inc. (STRL) has been on an impressive run, surging 49.8% in the past six months and outperforming both the Zacks Engineering - R and D Services industry and the broader Zacks Construction sector, as shown below. Currently trading about 10.3% below its 52-week high of $203.49, reached on Nov. 26, 2024, the stock continues to attract attention. The STRL stock has also outperformed its peer group company, Dycom Industries, Inc. (DY) . Dycom shares have surged 5.3% over the same time fr ...

Sterling Infrastructure (STRL) ended the recent trading session at $162.22, demonstrating a -0.8% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.86%, while the tech-heavy Nasdaq lost 0.38%.Shares of the civil construction company witnessed a loss of 9.3% over the previous month, beating the performance of the Construction sector with its loss of 10.48% and underperforming the S&P 500's loss of 2.2%.The investment community will ...

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].