Sterling Infrastructure, Inc. Just Beat Revenue Estimates By 14%

As you might know, Sterling Infrastructure, Inc. (NASDAQ:STRL) just kicked off its latest quarterly results with some very strong numbers. It was a positive result, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 14% higher than the analysts had forecast, at US$1.2b, while EPS of US$5.00 beat analyst models by 4.5%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Sterling Infrastructure's seven analysts are now forecasting revenues of US$4.10b in 2026. This would be a notable 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 24% to US$17.54. In the lead-up to this report, the analysts had been modelling revenues of US$3.91b and earnings per share (EPS) of US$17.40 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

Check out our latest analysis for Sterling Infrastructure

Even though revenue forecasts increased, there was no change to the consensus price target of US$905, suggesting the analysts are focused on earnings as the driver of value creation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Sterling Infrastructure analyst has a price target of US$1,000 per share, while the most pessimistic values it at US$754. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Sterling Infrastructure's growth to accelerate, with the forecast 42% annualised growth to the end of 2026 ranking favourably alongside historical growth of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sterling Infrastructure to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$905, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Sterling Infrastructure going out to 2028, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Sterling Infrastructure , and understanding them should be part of your investment process.

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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.