NASDAQ$STRL

Sterling Infrastructure Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Sterling reported record revenue, earnings, and operating cash flow for the first quarter of 2021, with backlog reaching an all-time high.

Sterling Construction Company reported a strong start to 2021 with record first-quarter revenue of $315.3 million, a gross margin of 14.3%, and net income of $10.6 million. The company reaffirmed its full-year 2021 revenue and income guidance, expecting to be on the higher end of the guidance range.

  • Revenues increased to $315.3 million compared to $296.7 million in the first quarter of 2020.
  • Gross margin improved to 14.3% from 11.9% in the prior year.
  • Operating income rose to $22.8 million, up from $12.1 million in Q1 2020.
  • Backlog reached a record high of $1.64 billion.

Headline financials

Total Revenue

$315M

Previous: $297M+6.3%
EPS (adj)

$0.37

Previous: $0.12+208.3%
EBITDA

$29.9M

No prior period
Gross Margin

14.3%

Previous: 20.2%-29.2%
Capital Expenditures

-$11.2M

Previous: -$7.35M-52.4%
Free Cash Flow

$459K

Previous: -$4.14M+111.1%
Net Income

$11.7M

Previous: $3.22M+262.9%
Operating Income

$22.8M

Previous: $12.1M+88.0%
Gross Profit

$45M

Previous: $35.2M+27.8%
Cash & Equivalents

$61.4M

Previous: $73.9M-16.9%
Total Assets

$947M

Previous: $976M-3.0%
Stock-Based Comp

$1.84M

Previous: $2.23M-17.9%

Revenue & EPS history

Sterling · Revenue · Quarterly

$315M

Q1 2021+6.3%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Sterling reaffirmed its full-year 2021 guidance, anticipating being on the higher end of the provided range.

Tailwinds

  • Strong start to the year, even with weather challenges.
  • Diversified revenue streams and focus on higher margin, lower risk opportunities.
  • Robust pipeline of projects for large, high-profile customers in Specialty Services.
  • Impressively strong performance in the Residential segment despite weather-related disruptions.
  • Continued shift in Heavy Civil revenues towards alternative delivery work and higher margins.

Headwinds

  • Supply chain pressures impacting segment margins, specifically relating to the cost of concrete, lumber, and steel.
  • Heavy Civil revenues are down $8.6 million from the prior year quarter.
  • Uncertain timing of the infrastructure bill.
  • COVID-19 pandemic impact on the global economy and financial markets
  • Weather challenges encountered across much of the geographic footprint

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.8%

Avg return

Earnings day

+5.6%

Avg return

5 days after

+6.6%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+52.2%

Q1 2026

Best reaction

-20.9%

Q1 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+52.2%+59.5%+87.5%
Q4 2025-5.4%-8.7%-7.7%
Q3 2025-2.8%-3.8%-15.4%
Q1 2025+3.2%+6.6%+17.1%
Q4 2024+5.4%+4.9%+0.2%
Q3 2024+10.9%+23.8%+24.5%
Q2 2024+1.2%-0.3%+4.3%
Q1 2024+20.6%+27.4%+15.2%
Q4 2023+22.1%+27.5%+30.3%
Q3 2023-17.5%-12.4%-12.0%
Q2 2023+23.9%+32.4%+31.3%
Q1 2023+9.0%+15.8%+24.8%
Q4 2022+1.1%+7.0%-0.1%
Q3 2022+9.8%+19.3%+20.2%
Q2 2022-3.3%-1.9%-1.6%
Q1 2022+2.4%+0.7%+8.0%
Q4 2021-3.1%-2.2%-4.1%
Q3 2021+3.1%+9.0%+4.3%
Q2 2021+2.0%+1.0%+4.5%
Q1 2021+11.4%+11.2%+13.0%
Q4 2020-17.9%-11.8%-3.0%
Q3 2020-0.2%-6.2%+9.6%
Q2 2020+6.1%+11.5%+10.7%
Q1 2020-5.1%-7.9%+16.2%
Q4 2019+7.5%-9.2%-32.9%
Q3 2019-0.1%-8.0%-14.2%
Q2 2019-9.3%-9.7%-8.1%
Q1 2019-12.7%-12.2%-4.0%
Q4 2018-1.6%-6.1%-11.8%
Q3 2018+1.7%+8.8%-3.8%
Q2 2018+7.7%+19.5%+11.6%
Q1 2018+17.8%+15.3%+16.8%
Q4 2017-4.4%+6.9%-5.5%
Q3 2017+15.5%+12.9%+10.9%
Q2 2017-17.9%-17.3%-3.3%
Q1 2017+7.2%+12.4%+6.8%
Q4 2016+7.9%+5.2%-3.4%
Q3 2016-16.0%-9.9%+8.5%
Q2 2016+1.4%+6.2%+10.8%
Q1 2016-17.7%
Q4 2015-3.9%
Q3 2015+12.1%
Q2 2015+14.6%
Q1 2015-20.9%
Q4 2014+35.3%
Q3 2014-8.6%
Q2 2014+0.0%
Q1 2014+10.9%
Q4 2013-3.5%
Q3 2013+1.3%
Q2 2013-0.5%
Q1 2013+3.7%
Q4 2012-1.4%
Q3 2012-7.0%
Q2 2012+1.1%
Q1 2012+0.2%
Q4 2009+4.0%
Q4 2011+4.0%
Q3 2011-7.8%
Q3 2010-7.8%
Q4 2010-9.0%
Q2 2010-9.0%
Q2 2011-9.0%
Q1 2011-4.3%
Q1 2010+8.7%

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