Sterling Construction Co. Inc. (NASDAQ:STRL) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Sterling Construction Co. Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.39 in the quarter versus EPS of $-0.17 in the year-earlier quarter.
Revenue: Rose 12.77% to $111 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Sterling Construction Co. Inc. reported adjusted EPS loss of $0.39 per share. By that measure, the company missed the mean analyst estimate of $-0.09. It beat the average revenue estimate of $102 million.
Quoting Management: Peter MacKenna, President and Chief Executive Officer of Sterling Construction commented, “Our first quarter results masked the favorable trends that we have been experiencing, both in our end markets and within our Company, and are not indicative of how we see the year progressing. New bookings were strong during the quarter, and this momentum continued into the second quarter with in excess of $100 million of bids won as of this date. The competitive environment appears to have moderated somewhat, and our margins have been improving. This is evident in our recent new project awards, which have been booked at gross margins of greater than 10%, as well as the performance on the work won since 2011. As we continue to work our way through the remaining problem contracts and win additional awards with more attractive economics, we should experience a meaningful improvement in profitability.”
Key Stats (on next page)…