Stantec (STN) Beats Q4 Earnings and Revenue Estimates

Core Viewpoint - Stantec reported quarterly earnings of $0.79 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and showing an increase from $0.60 per share a year ago, indicating a strong performance in the engineering sector [1][2]. Financial Performance - The company achieved revenues of $1.06 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.49%, compared to $912.51 million in the same quarter last year [2]. - Over the last four quarters, Stantec has consistently surpassed consensus EPS estimates, indicating a positive trend in financial performance [2]. Stock Performance and Outlook - Stantec shares have declined approximately 2.7% since the beginning of the year, contrasting with the S&P 500's gain of 1.7%, suggesting underperformance relative to the broader market [3]. - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $1.08 billion, and for the current fiscal year, it is $3.44 on revenues of $4.5 billion [7]. Industry Context - The Consulting Services industry, to which Stantec belongs, is currently ranked in the bottom 12% of over 250 Zacks industries, which may negatively impact stock performance [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, highlighting the importance of monitoring these revisions for investment decisions [5].