Sterling Infrastructure, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

The investors in Sterling Infrastructure, Inc.'s (NASDAQ:STRL) will be rubbing their hands together with glee today, after the share price leapt 28% to US$106 in the week following its yearly results. The result was positive overall - although revenues of US$2.0b were in line with what the analysts predicted, Sterling Infrastructure surprised by delivering a statutory profit of US$4.44 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Sterling Infrastructure

Following the latest results, Sterling Infrastructure's dual analysts are now forecasting revenues of US$2.18b in 2024. This would be a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 11% to US$4.98. Before this earnings report, the analysts had been forecasting revenues of US$2.20b and earnings per share (EPS) of US$4.71 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 31% to US$114, suggesting that higher earnings estimates flow through to the stock's valuation as well.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sterling Infrastructure's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Sterling Infrastructure'shistorical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.7% annually. So although Sterling Infrastructure is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sterling Infrastructure following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Sterling Infrastructure going out as far as 2025, and you can see them free on our platform here.

We also provide an overview of the Sterling Infrastructure Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.