NASDAQ$STRL

Sterling Infrastructure Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported mixed results with revenue decline offset by strong performance in specific segments and cost-saving measures.

Sterling reported a decrease in revenue for Q2 2020, but experienced strong growth in transportation solutions and building solutions segments. Cost-saving initiatives helped to mitigate the impact of the revenue decline on profitability. The company is cautious about the near-term outlook due to the ongoing economic uncertainty.

  • Q2 revenue decreased due to the COVID-19 pandemic impact on end markets.
  • Transportation solutions and building solutions segments showed strong growth.
  • Cost-saving initiatives contributed to improved profitability despite revenue decline.
  • The company is closely monitoring the economic environment and adjusting its operations accordingly.

Headline financials

Total Revenue

$400M

Previous: $264M+51.5%
EPS (adj)

$0.65

Previous: $0.29+124.1%
EBITDA

$52M

No prior period
Gross Margin

28.0%

Previous: 25.0%+12.0%
Capital Expenditures

-$14.6M

Previous: -$4.85M-200.2%
Free Cash Flow

$3.69M

Previous: $3.01M+22.6%
Net Income

$18.3M

Previous: $7.87M+132.2%
Operating Income

$33M

Previous: $11.2M+195.5%
Gross Profit

$59.6M

Previous: $25.5M+133.8%
Cash & Equivalents

$70.6M

Previous: $71.7M-1.6%
Total Assets

$1.02B

Previous: $500M+103.5%
Stock-Based Comp

$3.96M

Previous: $649K+510.5%

Revenue & EPS history

Sterling · Revenue · Quarterly

$400M

Q2 2020+51.5%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Sterling anticipates continued economic uncertainty in the near term, which may impact demand across its end markets. The company is focused on managing costs and investing in growth opportunities to navigate the challenging environment.

Tailwinds

  • Strong growth expected in transportation and building solutions segments.
  • Cost-saving initiatives are expected to continue to improve profitability.
  • New product launches are planned to drive revenue growth.
  • The company is well-positioned to capitalize on long-term growth trends in connectivity.
  • A solid balance sheet provides financial flexibility to weather the downturn.

Headwinds

  • COVID-19 pandemic is expected to continue to impact end markets.
  • Economic uncertainty may lead to lower demand.
  • Supply chain disruptions could affect production.
  • Increased competition may put pressure on pricing.
  • Currency fluctuations could negatively impact results.

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 Q2 2020

Historical avgQ2 2020

+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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