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What's in Store for Sterling Construction (STRL) Q4 Earnings?
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Sterling Construction Company, Inc. (STRL - Free Report) is scheduled to report fourth-quarter 2020 results on Mar 2, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 17%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 23 cents, indicating growth of 4.6% from the prior-year quarter. Over the past 30 days, earnings estimates have remained stable. The consensus mark for revenues stands at $341.3 million, suggesting decline of 1.5% from the year-ago reported number.
Factors to Note
The company’s fourth-quarter performance is likely to have benefited from robust Dallas and Houston residential markets. It is worth mentioning that the company’s largest customers remain optimistic about 2021.
Meanwhile, strong backlog, improved backlog margins and its diversification away from heavy highway have been favoring the company. The Zacks Consensus Estimate for the to-be-reported quarter’s contract backlog suggests growth of 10.9% year over year. Moreover, robust performances of specialty services and residential segments might have favored the to-be-reported quarter’s performance.
However, reduction in DOT budget in several states around the United States is likely to have negatively impacted the company’s heavy civil sector. In third-quarter 2020, heavy civil segment reported revenue decline of 8.1% year over year.
Sterling Construction Company Inc Price and EPS Surprise
Our proven model doesn’t conclusively predict an earnings beat for Sterling Construction 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's not the case here.
Earnings ESP: Sterling Construction 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 Construction, which shares space with Dycom Industries, Inc. (DY - Free Report) , carries a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks worth considering from the Zacks Construction space as our model shows that these have the right combination of elements to beat earnings this season:
Thor Industries, Inc. (THO - Free Report) has an Earnings ESP of +3.09% and a Zacks Rank #2.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second. Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
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What's in Store for Sterling Construction (STRL) Q4 Earnings?
Sterling Construction Company, Inc. (STRL - Free Report) is scheduled to report fourth-quarter 2020 results on Mar 2, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 17%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 23 cents, indicating growth of 4.6% from the prior-year quarter. Over the past 30 days, earnings estimates have remained stable. The consensus mark for revenues stands at $341.3 million, suggesting decline of 1.5% from the year-ago reported number.
Factors to Note
The company’s fourth-quarter performance is likely to have benefited from robust Dallas and Houston residential markets. It is worth mentioning that the company’s largest customers remain optimistic about 2021.
Meanwhile, strong backlog, improved backlog margins and its diversification away from heavy highway have been favoring the company. The Zacks Consensus Estimate for the to-be-reported quarter’s contract backlog suggests growth of 10.9% year over year. Moreover, robust performances of specialty services and residential segments might have favored the to-be-reported quarter’s performance.
However, reduction in DOT budget in several states around the United States is likely to have negatively impacted the company’s heavy civil sector. In third-quarter 2020, heavy civil segment reported revenue decline of 8.1% year over year.
Sterling Construction Company Inc Price and EPS Surprise
Sterling Construction Company Inc price-eps-surprise | Sterling Construction Company Inc Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Sterling Construction 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's not the case here.
Earnings ESP: Sterling Construction 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 Construction, which shares space with Dycom Industries, Inc. (DY - Free Report) , carries a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks worth considering from the Zacks Construction space as our model shows that these have the right combination of elements to beat earnings this season:
Winnebago Industries, Inc. (WGO - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thor Industries, Inc. (THO - Free Report) has an Earnings ESP of +3.09% and a Zacks Rank #2.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second. Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>