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Sterling Infrastructure, Inc. (NASDAQ:STRL) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$431m arriving 5.4% ahead of forecasts. Statutory earnings per share (EPS) were US$1.28, 8.0% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sterling Infrastructure after the latest results.
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Following last week's earnings report, Sterling Infrastructure's four analysts are forecasting 2025 revenues to be US$2.09b, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 17% to US$7.25 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$2.02b and earnings per share (EPS) of US$7.02 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Check out our latest analysis for Sterling Infrastructure
With these upgrades, we're not surprised to see that the analysts have lifted their price target 7.6% to US$213per share. 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$225 per share, while the most pessimistic values it at US$205. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sterling Infrastructure is an easy business to forecast or the the analysts are all using similar assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.1% by the end of 2025. This indicates a significant reduction from annual growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Sterling Infrastructure is expected to lag the wider industry.