Sterling Infrastructure, Inc shares climbed 22% to $75.49 on Tuesday after the company posted record second-quarter 2023 earnings of $1.27 per share, handily surpassing the Zacks Consensus Estimate of $0.93 per share.
Its revenue for the period, meanwhile, rose 13% to $522.3 million, which also exceeded the consensus forecast by 6.3%.
"While we are very pleased with our 13% revenue growth in the quarter, it is the 230 basis points of gross margin expansion and nearly 30% growth in EBITDA that reflect our successful strategic shift toward higher-margin, lower-risk opportunities," Sterling Infrastructure CEO Joe Cutillo said in a statement.
"In addition to our record earnings, our generation of cash flow from operations of $181 million year to date is fantastic," he added.
Sterling also noted that its backlog as of June 30, 2023, was $1.74 billion, an increase of 23% from December 31, 2022.
As well, the company increased its full-year guidance, now forecasting 2023 revenue of $1.95 billion to $2.05 billion along with net income of $125 million to $131 million.
Contact Sean at sean@proactiveinvestors.com