Company Performance - Sterling Infrastructure (STRL) closed at $117.81, reflecting a +1.18% change from the previous session, outperforming the S&P 500's daily loss of 0.91% [1] - The stock has experienced a decline of 17.07% over the past month, which is significantly worse than the Construction sector's loss of 7.5% and the S&P 500's loss of 7.38% [1] Upcoming Earnings - Analysts expect Sterling Infrastructure to report earnings of $1.28 per share, indicating a year-over-year growth of 28% [2] - The consensus estimate for revenue is $415.6 million, which represents a 5.62% decrease compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $7.35 per share, showing a growth of +20.49%, while revenue is expected to be $2.03 billion, reflecting a decline of -4.08% from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for Sterling Infrastructure are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Sterling Infrastructure at 1, indicating strong potential for superior performance [6] - The Zacks Consensus EPS estimate has increased by 13.7% in the past month, suggesting positive sentiment among analysts [6] Valuation Metrics - Sterling Infrastructure has a Forward P/E ratio of 15.85, which is lower than the industry average of 16.21 [7] - The company's PEG ratio stands at 1.06, compared to the industry average PEG ratio of 1.21, indicating a favorable valuation relative to expected earnings growth [7] Industry Context - The Engineering - R and D Services industry, part of the Construction sector, holds a Zacks Industry Rank of 86, placing it in the top 35% of over 250 industries [8] - Research indicates that industries in the top 50% of the Zacks Rank tend to outperform those in the bottom half by a factor of 2 to 1 [8]

Sterling Infrastructure (STRL) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual inve ...

Company Overview - Sterling Infrastructure (STRL) is an American company focused on construction and providing infrastructure solutions for large projects across various states in the U.S. [1] - The business model is divided into three main segments: transportation infrastructure, buildings, and e-infrastructure [1] Investment Focus - The company operates in sectors that are often overlooked by the market, such as oil & gas, metals, and mining, particularly in emerging markets [2] - It emphasizes companies with sustained free cash flows, low leverage, and sustainable debt, especially those in distress with high recovery potential [2] - A solid pro-shareholder attitude is highlighted, with a focus on sustained buyback programs and dividend distributions [2]

Core Insights - The recommendation to take profits on Sterling Infrastructure (NASDAQ: STRL) was made in January 2025 due to stretched valuations and potential headwinds anticipated in the near future [1] - The latest quarterly results released in March provide insights into the company's performance and market position [1] Company Analysis - Sterling Infrastructure is being monitored for its financial health and market dynamics following the profit-taking recommendation [1] - The focus is on high-quality stocks and businesses that exhibit disciplined capital allocation and exceptional returns on capital [1]

Core Viewpoint - Sterling Infrastructure (STRL) has been under scrutiny due to its recent stock performance, which has declined by -11.8% over the past month, compared to the Zacks S&P 500 composite's -4.1% change, and the Zacks Engineering - R and D Services industry's -13.4% decline [2] Earnings Estimates - Sterling Infrastructure is projected to report earnings of $1.28 per share for the current quarter, reflecting a year-over-year increase of +28%. The Zacks Consensus Estimate has risen by +26.7% over the last 30 days [5] - The consensus earnings estimate for the current fiscal year stands at $7.35, indicating a year-over-year change of +20.5%, with a +13.7% increase in estimates over the past month [5] - For the next fiscal year, the consensus earnings estimate is $8.21, representing an +11.8% change from the previous year, with a +16.1% increase in estimates over the past month [6] Stock Rating - Sterling Infrastructure has received a Zacks Rank 1 (Strong Buy), indicating a strong potential for near-term price performance, driven by significant changes in earnings estimates [7] Revenue Growth - The consensus sales estimate for the current quarter is $415.6 million, which indicates a year-over-year decline of -5.6%. For the current and next fiscal years, sales estimates are $2.03 billion and $2.2 billion, reflecting changes of -4.1% and +8.4%, respectively [9] Recent Performance - In the last reported quarter, Sterling Infrastructure achieved revenues of $498.83 million, a year-over-year increase of +2.6%. The EPS for the same period was $1.46, compared to $1.30 a year ago [10] - The reported revenues were below the Zacks Consensus Estimate of $533.75 million, resulting in a revenue surprise of -6.54%. However, the EPS surprise was +8.96%, with the company beating consensus EPS estimates in each of the last four quarters [11] Valuation - Sterling Infrastructure is graded B in the Zacks Value Style Score, indicating that it is trading at a discount compared to its peers [15]

Core Insights - The article compares Sterling Infrastructure (STRL) and Quanta Services (PWR) to determine which stock offers better value for investors [1] Valuation Metrics - STRL has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while PWR has a Zacks Rank of 3 (Hold) [3] - STRL's forward P/E ratio is 18.76, significantly lower than PWR's forward P/E of 25.50 [5] - STRL has a PEG ratio of 1.25, compared to PWR's PEG ratio of 1.93, suggesting STRL may offer better growth relative to its price [5] - STRL's P/B ratio is 4.58, while PWR's P/B ratio is 5.22, indicating STRL is more favorably valued in terms of market value versus book value [6] - STRL's overall Value grade is B, while PWR's Value grade is C, further supporting STRL as the superior value option [6][7] Earnings Outlook - STRL is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Sterling Infrastructure, Inc. (NASDAQ:STRL) Q4 2024 Earnings Call February 26, 2025 9:00 AM ET Company Participants Noelle Dilts - VP, IR and Corporate Strategy Joseph A. Cutillo - CEO Sharon Villaverde - CFO and CAO Conference Call Participants Noah Levitz - William Blair Adam Thalhimer - Thompson Davis Brent Thielman - D.A. Davidson Julio Romero - Sidoti Company Tom Bishop - BI Research Operator Good morning, ladies and gentlemen, and welcome to the Sterling Infrastructure Fourth Quarter and Full Year Web ...

Financial Performance - In 2024, the value of the Company's Backlog was $1.69 billion, down from $2.07 billion in 2023, primarily due to the deconsolidation of a 50% owned subsidiary[34]. - Four customers accounted for 31% of the E-Infrastructure Solutions segment's revenue in 2024, compared to 40% in 2023 and 35% in 2022[27]. - Four state Departments of Transportation accounted for 47% of the Transportation Solutions segment's revenue in 2024, down from 50% in 2023 and 44% in 2022[28]. - Four customers accounted for 36% of the Building Solutions segment's revenue in 2024, compared to 42% in 2023 and 60% in 2022[29]. Workforce and Employment - As of December 31, 2024, the Company had approximately 3,000 employees, with 20% represented by unions[45]. - The Company has a strategic plan for hiring and managing its workforce to address challenges in attracting and retaining personnel[48]. Financial Position - The Company held $664.2 million in cash and cash equivalents as of December 31, 2024[204]. - The Company's variable rate debt under its Credit Facility was $317.2 million as of December 31, 2024, with a potential interest expense fluctuation of approximately $3.2 million per year for a 100-basis point change[204]. - The carrying values of the Company's cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values due to their short-term nature[205]. Operational Challenges - Since 2021, supply chain volatility and inflation have led to price increases in oil, fuel, lumber, concrete, steel, and labor, increasing the Company's operational costs[206]. - Inflation has also raised the Company's general and administrative expenses, negatively impacting financial results[206]. - The Company’s operations are subject to various regulatory requirements, including environmental laws, which may impact future operations and costs[41]. Business Expansion - The Company expanded its residential business into the greater Phoenix area in 2021 and continued this expansion in 2022 with the acquisition of the CCS business[29].

E-Infrastructure Solutions Q4 2024 Earnings Call February 26, 2025 We build and service the infrastructure that enables our economy to run, our people to move, and our country to grow. DISCLOSURE: Forward-Looking Statements This presentation contains, and the officers and directors of the Company may from time to time make, statements that are considered forward- looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are ...

Core Viewpoint - Sterling Infrastructure (STRL) reported quarterly earnings of $1.46 per share, exceeding the Zacks Consensus Estimate of $1.34 per share, and showing an increase from $1.30 per share a year ago, representing an earnings surprise of 8.96% [1][2] Financial Performance - The company posted revenues of $498.83 million for the quarter ended December 2024, which was 6.54% below the Zacks Consensus Estimate, compared to $485.98 million in the same quarter last year [2] - Over the last four quarters, Sterling Infrastructure has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] Stock Performance - Sterling Infrastructure shares have declined approximately 35.5% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.01 on revenues of $419.4 million, and for the current fiscal year, it is $6.46 on revenues of $2.07 billion [7] Industry Outlook - The Engineering - R and D Services industry, to which Sterling Infrastructure belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Sterling Infrastructure's stock performance [5][6]