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Sterling's (STRL) Arm Receives $100M Data Center Project
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Sterling Infrastructure, Inc.’s (STRL - Free Report) subsidiary — Plateau Excavation — won a data center project in the Southeastern United States with a value of approximately $100 million.
The scope of the project covers 280 acres, including 125,000 linear feet of underground infrastructure installation. Work on this project is expected to begin in the second quarter of 2024.
In the past three months, shares of this Zacks Rank #1 (Strong Buy) have gained 31.3% compared with the Zacks Engineering - R and D Services industry’s 12.7% growth.
Image Source: Zacks Investment Research
Recently, the company reported fourth-quarter 2023 results, where earnings surpassed the Zacks Consensus Estimate, but revenues missed the same. Nonetheless, earnings per share (EPS) rose 97% from a year ago. Quarterly revenues also increased 8.2% from the year-ago level. The upside was driven by strong contributions from the Transportation and Building Solutions segments, along with its strategic emphasis on higher margins.
In 2023, Sterling’s revenues were up 11.5% from 2022. EPS of $4.44 also increased from $3.16 a year ago.
For 2024, the company expects revenues between $2.125 billion and $2.215 billion, up from $1.97 billion reported in 2023. EBITDA is anticipated to be between $285 million and $300 million versus $259.9 million reported in 2023. EPS is expected to be in the range of $4.85-$5.15.
The company has been gaining strength on regular contract wins and solid project execution.
On Feb 26, the company announced that its Road and Highway Builders, LLC subsidiary or RHB (50% owned), has been awarded a $155 million contract for a runway extension at the Lihue Airport located in Kauai, Hawaii. The project, which is expected to begin in April and is likely to finish in a two-and-a-half-year duration, will be included in the first-quarter backlog.
RHB also won two highway projects for $78 million from the Nevada Department of Transportation (“NDOT”), which was included in fourth-quarter 2023 backlog. Within this, a $49 million NDOT 3996 Lohantan project consists of 17 miles of highway widening and reconstruction, new bridge construction, and new drainage systems. The work began in late February and is expected to finish later in 2024.
The $29 million NDOT 4501 Tonopah project, which contains 15 miles of highway widening and reconstruction and new water and sewer facilities for the town of Tonopah, is slated to begin in March and is expected to finish this year.
For both projects, RHB will run a portable asphalt plant and aggregate crushing plant on site.
Other Top-Ranked Construction Stocks Hogging in the Limelight
The Zacks Consensus Estimate for WLDN’s 2024 sales and EPS indicates growth of 3.9% and 3.4%, respectively, from the year-ago level.
Altair Engineering Inc. (ALTR - Free Report) currently carries a Zacks Rank #2 (Buy). ALTR delivered a trailing four-quarter earnings surprise of 107%, on average.
The Zacks Consensus Estimate for ALTR’s 2024 sales and EPS indicates growth of 8.5% and 10.6%, respectively, from the previous year’s reported levels.
Toll Brothers, Inc. (TOL - Free Report) currently has a Zacks Rank of 2. TOL delivered a trailing four-quarter earnings surprise of 30.2%, on average.
The Zacks Consensus Estimate for TOL’s fiscal 2024 sales and EPS indicates growth of 0.6% and 11%, respectively, from a year ago.
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Sterling's (STRL) Arm Receives $100M Data Center Project
Sterling Infrastructure, Inc.’s (STRL - Free Report) subsidiary — Plateau Excavation — won a data center project in the Southeastern United States with a value of approximately $100 million.
The scope of the project covers 280 acres, including 125,000 linear feet of underground infrastructure installation. Work on this project is expected to begin in the second quarter of 2024.
In the past three months, shares of this Zacks Rank #1 (Strong Buy) have gained 31.3% compared with the Zacks Engineering - R and D Services industry’s 12.7% growth.
Image Source: Zacks Investment Research
Recently, the company reported fourth-quarter 2023 results, where earnings surpassed the Zacks Consensus Estimate, but revenues missed the same. Nonetheless, earnings per share (EPS) rose 97% from a year ago. Quarterly revenues also increased 8.2% from the year-ago level. The upside was driven by strong contributions from the Transportation and Building Solutions segments, along with its strategic emphasis on higher margins.
In 2023, Sterling’s revenues were up 11.5% from 2022. EPS of $4.44 also increased from $3.16 a year ago.
For 2024, the company expects revenues between $2.125 billion and $2.215 billion, up from $1.97 billion reported in 2023. EBITDA is anticipated to be between $285 million and $300 million versus $259.9 million reported in 2023. EPS is expected to be in the range of $4.85-$5.15.
The company has been gaining strength on regular contract wins and solid project execution.
On Feb 26, the company announced that its Road and Highway Builders, LLC subsidiary or RHB (50% owned), has been awarded a $155 million contract for a runway extension at the Lihue Airport located in Kauai, Hawaii. The project, which is expected to begin in April and is likely to finish in a two-and-a-half-year duration, will be included in the first-quarter backlog.
RHB also won two highway projects for $78 million from the Nevada Department of Transportation (“NDOT”), which was included in fourth-quarter 2023 backlog. Within this, a $49 million NDOT 3996 Lohantan project consists of 17 miles of highway widening and reconstruction, new bridge construction, and new drainage systems. The work began in late February and is expected to finish later in 2024.
The $29 million NDOT 4501 Tonopah project, which contains 15 miles of highway widening and reconstruction and new water and sewer facilities for the town of Tonopah, is slated to begin in March and is expected to finish this year.
For both projects, RHB will run a portable asphalt plant and aggregate crushing plant on site.
Other Top-Ranked Construction Stocks Hogging in the Limelight
Willdan Group, Inc. (WLDN - Free Report) currently sports a Zacks Rank of 1. WLDN delivered a trailing four-quarter average earnings surprise of a whopping 886.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WLDN’s 2024 sales and EPS indicates growth of 3.9% and 3.4%, respectively, from the year-ago level.
Altair Engineering Inc. (ALTR - Free Report) currently carries a Zacks Rank #2 (Buy). ALTR delivered a trailing four-quarter earnings surprise of 107%, on average.
The Zacks Consensus Estimate for ALTR’s 2024 sales and EPS indicates growth of 8.5% and 10.6%, respectively, from the previous year’s reported levels.
Toll Brothers, Inc. (TOL - Free Report) currently has a Zacks Rank of 2. TOL delivered a trailing four-quarter earnings surprise of 30.2%, on average.
The Zacks Consensus Estimate for TOL’s fiscal 2024 sales and EPS indicates growth of 0.6% and 11%, respectively, from a year ago.