Sterling Construction Earnings: Everything You Must Know Now

Sterling Construction Co. Inc. (NASDAQ:STRL) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Sterling Construction Co. Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.93 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Decreased 20.93% to $133.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sterling Construction Co. Inc. reported adjusted EPS loss of $0.93 per share. By that measure, the company missed the mean analyst estimate of $-0.72. It missed the average revenue estimate of $176.73 million.

Quoting Management: Peter MacKenna, President and Chief Executive Officer of Sterling commented, “We continue to be very encouraged by our level of bookings and the margins associated with our newer projects. As of the end of June, our year to date “apparent low bid”-to-bill ratio was 1.35:1 with an average margin of 11.1%. Additionally, we are making good headway in burning off work bid at low margins during the recession and the extremely competitive environment resulting from the recession in the several years that followed. Currently, approximately 22% of our total backlog is comprised of legacy projects, or jobs booked prior to 2012, and we are on track to complete a significant portion of this legacy backlog in the next twelve months, positioning the Company for a material improvement in profitability during 2014.”

Key Stats (on next page)…

Revenue increased 20.14% from $111.04 million in the previous quarter. EPS decreased to $-0.93 in the quarter versus EPS of $-0.39 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.17 to a loss $0.05. For the current year, the average estimate has moved down from a profit of $0.29 to a loss of $1.70 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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