THE WOODLANDS, Texas - Sterling Construction (NASDAQ:STRL) Company, Inc. (NASDAQ:STRL) reported a significant beat on adjusted earnings per share (EPS) for the fourth quarter, despite revenue falling short of analyst expectations.
The company announced a fourth-quarter EPS of $1.30, surpassing the analyst estimate of $1.02. However, quarterly revenue was reported at $486 million, which did not meet the consensus estimate of $522.45 million.
Sterling's performance in the fourth quarter was bolstered by strong demand for its infrastructure services, as highlighted by CEO Joe Cutillo. He attributed the company's success to states actively engaging in programs to upgrade their infrastructure, which has driven demand for Sterling's aviation and highway services.
The CEO also mentioned that aviation projects are gaining momentum following the Infrastructure Investment and Jobs Act.
Looking ahead, Sterling Construction provided an optimistic guidance for the fiscal year 2024, projecting an adjusted EPS range of $4.85 to $5.15, which is above the consensus estimate of $4.71. The company anticipates FY2024 revenue to be between $2.125 billion and $2.215 billion, with the midpoint of this range slightly below the consensus estimate of $2.201 billion.
The company's stock responded positively to the news, rising by 3.37%. The uptick still reflects investor confidence in the company's earnings beat and future outlook.
In addition to the earnings report, Sterling announced a new $155 million contract for its subsidiary, Road and Highway Builders, LLC, to extend the runway at Lihue Airport in Kauai, Hawaii. This contract is expected to be included in the company's first quarter 2024 backlog and is part of Hawaii's Airport Modernization Program.
Sterling Infrastructure operates across the United States, specializing in E-Infrastructure, Transportation, and Building Solutions.
The company emphasizes its commitment to sustainability and improving the quality of life in the communities it serves, a sentiment echoed by CEO Joe Cutillo, who stated, "We build and service the infrastructure that enables our economy to run, our people to move and our country to grow."
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