Skip to main content

Market Overview

Preview: Sterling Construction Co's Earnings


Sterling Construction Co (NASDAQ:STRL) unveils its next round of earnings this Tuesday, March 02. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on management's projections, Sterling Construction Co analysts model for earnings of $0.23 per share on sales of $340.15 million. In the same quarter last year, Sterling Construction Co announced EPS of $0.22 on revenue of $346.54 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 4.55%. Revenue would be down 1.85% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.45 0.31 0.22 0.25
EPS Actual 0.55 0.65 0.12 0.22
Revenue Estimate 384.30 M 329.35 M 306.35 M 298.00 M
Revenue Actual 383.46 M 400.04 M 296.69 M 346.54 M

Stock Performance

Shares of Sterling Construction Co were trading at $22.78 as of February 26. Over the last 52-week period, shares are up 60.29%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Sterling Construction Co is scheduled to hold the call at 10:00:00 ET and can be accessed here.


Related Articles (STRL)

View Comments and Join the Discussion!

Posted-In: BZI-EPEarnings