Infrastructure Surge to Lift Sterling Q1 Earnings: Buy or Hold?
From Nasdaq: 2025-05-02 11:02:00
Sterling Infrastructure, Inc. (STRL) is set to report first-quarter 2025 results on May 5 after the closing bell. In the last quarter, Sterling outperformed with adjusted EPS of $1.46, beating estimates by 9% and growing 13.2% year over year. Revenues rose 3% to $498.8 million, showing a focus on margin expansion and profitability metrics.
The Zacks Consensus Estimate for STRL’s third-quarter EPS is $1.58, indicating a 58% year-over-year growth. For 2025, the company is expected to see 34.6% EPS growth. However, the Zacks model does not predict an earnings beat due to factors like Earnings ESP of 0.00% and a Zacks Rank of #3.
Sterling has a strong presence in e-infrastructure and transportation markets. Despite expected seasonal softness in Q1, the company’s strategic focus on high-margin projects and strong execution are expected to drive another strong quarter. The E-Infrastructure segment, which includes data centers and advanced manufacturing, is poised for growth.
STRL stock has shown strong performance, trading above its moving averages. With a forward P/E ratio of 17.4, slightly below the industry average, Sterling offers a balanced risk-reward profile. As the infrastructure sector grows and demand for data centers rises, Sterling’s strong industry reputation positions it well for future growth and earnings expansion.
Read more at Nasdaq: Infrastructure Surge to Lift Sterling Q1 Earnings: Buy or Hold?