U.S. markets closed
  • S&P 500

    4,455.48
    +6.50 (+0.15%)
     
  • Dow 30

    34,798.00
    +33.18 (+0.10%)
     
  • Nasdaq

    15,047.70
    -4.54 (-0.03%)
     
  • Russell 2000

    2,248.07
    -10.97 (-0.49%)
     
  • Crude Oil

    73.95
    +0.65 (+0.89%)
     
  • Gold

    1,750.60
    +0.80 (+0.05%)
     
  • Silver

    22.42
    -0.26 (-1.16%)
     
  • EUR/USD

    1.1718
    -0.0029 (-0.25%)
     
  • 10-Yr Bond

    1.4600
    +0.0500 (+3.55%)
     
  • GBP/USD

    1.3681
    -0.0040 (-0.29%)
     
  • USD/JPY

    110.6850
    +0.3840 (+0.35%)
     
  • BTC-USD

    42,020.72
    -628.62 (-1.47%)
     
  • CMC Crypto 200

    1,067.20
    -35.86 (-3.25%)
     
  • FTSE 100

    7,051.48
    -26.87 (-0.38%)
     
  • Nikkei 225

    30,248.81
    +609.41 (+2.06%)
     

Sterling (STRL) to Report Q2 Earnings: What's in Store?

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Sterling Construction Company, Inc. STRL is slated to report second-quarter 2021 results on Aug 2, after the closing bell.

In the last reported quarter, adjusted earnings and revenues surpassed the respective Zacks Consensus Estimate by 76.2% and 1.1%. On a year-over-year basis, adjusted earnings improved 236.4%, driven by its diversified business and a focus on higher-margin, lower-risk opportunities. Revenues were up 6.3% year over year.

This mechanical and electrical construction service provider’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, the average surprise being 47.5%.

Trend in Estimate Revision

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has moved 4.1% south to 47 cents per share over the past 30 days. The figure indicates a 27.7% decrease from the year-ago quarter’s earnings of 65 cents per share. The consensus mark for revenues is $403.3 million, suggesting a 0.8% improvement from the year-earlier quarter’s reported figure.

Sterling Construction Company Inc Price and EPS Surprise

Sterling Construction Company Inc Price and EPS Surprise
Sterling Construction Company Inc Price and EPS Surprise

Sterling Construction Company Inc price-eps-surprise | Sterling Construction Company Inc Quote

Factors to Note

The company’s second-quarter revenues are likely to have benefited from its diversified portfolio and a focus on higher-margin, lower-risk projects. The company is well executing a robust pipeline of projects for large high-profile customers who are building new distribution centers, data centers and warehouses.

Its Residential segment is likely to have witnessed strong demand and productivity trends in the quarter to be reported. However, the segment is experiencing supply-chain issues, specifically relating to the cost of concrete, lumber and steel, due to which, management announced multiple price increases. These headwinds might have put pressure on second-quarter earnings.

The Heavy Civil business segment is likely to have revamped sequentially as it continues to ramp up several large design build projects in the Rocky Mountain region.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for Sterling this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat but that is not the case here as you will see below.

Earnings ESP: Sterling has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Sterling, which shares space with Dycom Industries, Inc. DY, Great Lakes Dredge & Dock Corporation GLDD and EMCOR Group, Inc. EME in the Zacks Building Products - Heavy Construction industry, currently carries a Zacks Rank #2.

You can see the complete list of today’s Zacks #1 Rank stocks here.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

EMCOR Group, Inc. (EME) : Free Stock Analysis Report

Dycom Industries, Inc. (DY) : Free Stock Analysis Report

Sterling Construction Company Inc (STRL) : Free Stock Analysis Report

Great Lakes Dredge & Dock Corporation (GLDD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research