Sterling Construction Company, Inc. (NASDAQ: STRL) Quarterly Earnings Insight

• Earnings Per Share (EPS) for the upcoming quarter is estimated at $1.71, with last quarter's EPS beating estimates at $1.97.
• Despite surpassing EPS estimates, Sterling's revenue fell slightly short at $593.74 million, indicating a challenge in meeting revenue expectations.
• The company boasts a gross profit margin of 21.9% and maintains a substantial backlog of $2.37 billion, highlighting its profitability and growth potential.

Sterling Construction Company, Inc. (NASDAQ:STRL) is a prominent player in the construction and infrastructure sector. The company is known for its focus on large-scale projects and has a strong presence in the Zacks Engineering - R and D Services industry. Sterling's competitors include other major construction firms that also engage in infrastructure development and engineering services.

Sterling is set to release its quarterly earnings on November 7, 2024, with analysts estimating an EPS of $1.71 and projected revenue of $613.63 million. In the previous quarter, Sterling reported impressive earnings of $1.97 per share, surpassing the Zacks Consensus Estimate of $1.68. This marked a significant increase from the $1.26 per share reported in the same quarter last year, resulting in a 17.26% earnings surprise.

Despite the strong earnings performance, Sterling's revenues for the quarter were $593.74 million, slightly below the Zacks Consensus Estimate by 1.03%. However, this still represents an improvement from the $560.35 million in revenues reported a year ago. The company has only surpassed consensus revenue estimates once in the last four quarters, highlighting a challenge in meeting revenue expectations.

Sterling's financial metrics provide insight into its market valuation. The company has a P/E ratio of approximately 33.38, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio is about 2.61, and the enterprise value to sales ratio is around 2.53, reflecting the company's market value relative to its sales and total valuation compared to its revenue.

Sterling's strategic focus on margin expansion has significantly boosted profitability. The company achieved a record gross profit margin of 21.9% in the third quarter of 2024. Additionally, Sterling closed the quarter with a combined backlog of $2.37 billion, consistent with the previous year's levels, and is increasingly engaging in large, multi-phase projects to build a robust pipeline for future growth.