Sterling Infrastructure, Inc. exceeded earnings and revenue estimates in Q3 with significant growth projections.

From Nasdaq: 2024-11-04 12:20:00

Sterling Infrastructure, Inc. (STRL) is set to report third-quarter 2024 results on Nov. 6. In the last quarter, STRL exceeded earnings and revenue estimates. The company saw 11.7% revenue growth, 31.5% EPS growth, and a $2.45 billion backlog. Sterling raised its 2024 guidance, expecting significant growth in revenue, net income, and EBITDA for the year.

The Zacks Consensus Estimate for STRL’s Q3 EPS is $1.68, with revenues estimated at $599.9 million, indicating year-over-year growth. However, the Zacks model doesn’t predict an earnings beat for STRL this quarter due to the current Earnings ESP and Zacks Rank status.

Sterling’s performance in Q3 is expected to be driven by AI trends, a diversified portfolio, and margin expansion. The company’s E-Infrastructure and Transportation Solutions segments are set for growth, benefiting from data centers, advanced manufacturing, and the Infrastructure Bill’s funding for transportation programs.

STRL stock has shown strong performance this year, outperforming the industry. While the company offers promising growth opportunities, its high valuation may warrant caution. Investors may want to wait for clearer signs of stability and market conditions before considering an investment in Sterling.

As the infrastructure sector grows, Sterling’s reputation and experience position it well for significant benefits. With strong revenue and EBITDA projections for 2024, STRL shows promise for attractive returns. However, investors should consider the high valuation, subdued estimates, and market conditions before making an investment decision.



Read more at Nasdaq: Sterling Stock Before Q3 Earnings Release: To Buy or Not to Buy?