Yahoo Finance Sterling's (STRL) RLW Wins Aviation Contract at Salt Lake City
Sterling Infrastructure, Inc.’s STRL subsidiary, Ralph L. Wadsworth Construction Company, LLC (RLW), won the Phase 4 Terminal Redevelopment Program at the Salt Lake City International Airport.
The project’s scope includes airfield and civil work to connect adjacent taxiways and extensive electrical work to update lighting and signage. Also, the demolition of taxiways, aprons, utilities and other related infrastructure will be completed to make way for new installations in the design layout.
Over the last three years, STRL received more than $200 million in aviation projects with the department of airports. To this note, Sterling's CEO, Joe Cutillo, stated, "This award is yet another example of aligning our unparalleled performance with our strategic focus in our Transportation Solutions segment to expand our alternative delivery aviation business."
Solid Project Execution Bode Well
This Woodlands, TX-based company specializes in E-Infrastructure, Building and Transportation Solutions principally in the United States, mainly across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain states, California and Hawaii.
The company has been navigating the ongoing supply chain and inflation challenges with growth in its E-Infrastructure Solutions (its largest segment), E-Infrastructure and Building Solutions. With continued demand for complex site development, STRL has been broadening its customer base with industrial and manufacturing opportunities in E-Infrastructure Solutions, thereby helping it to generate higher profits. Focus on the execution of strategic objectives also bodes well.
Earlier on Oct 26, RLW received two new projects in Idaho for more than $34 million. The awards combine the Idaho Transportation Department’s (ITD) infrastructure improvements with a design-build concrete package project.
In the past six months, shares of the company have gained 32.8% compared with Zacks Engineering - R and D Services industry’s 2% increase. It is benefiting from solid E-Infrastructure Solutions and Transportation and Building Solutions businesses. September-end backlog and combined backlog levels were at all-time highs, primarily as a result of the new large site development projects in E-Infrastructure Solutions and increased bid activity in Transportation Solutions.
Backed by strong results and backlog, the company raised its fiscal 2022 guidance. Its current guidance reflects net income improvement by 53%, revenue by 21% and EPS by 47% year over year.
STRL’s earnings for 2022 and 2023 are expected to grow by 47.4% and 6.3%, respectively. This Zacks Rank #2 (Buy) stock has seen a 4.3% upward estimate revision for 2022 earnings in the past 30 days, depicting analysts’ optimism over its prospects.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
Some better-ranked stocks that warrant a look in the Zacks Construction sector include Atlas Technical Consultants, Inc. ATCX, Altair Engineering Inc. ALTR and EMCOR Group Inc. EME, each carrying a Zacks Rank #2.
Atlas Technical, an Austin, TX-based company, provides professional testing, inspection, engineering, environmental and program management and consulting services in the United States. The company’s record backlog and robust new award pipeline reflect the business’ prospects. ATCX has become one of the largest providers of mission-critical technical services for infrastructure and environmental markets in the United States.
ATCX’s expected earnings growth rate for 2023 is 76.9%.
Altair Engineering provides software and cloud solutions in simulation, high-performance computing, data analytics and artificial intelligence worldwide.
ALTR’s expected earnings growth rate for 2023 is 21.5%.
EMCOR Group, a Norwalk, CT-based company, provides electrical and mechanical construction and facilities services in the United States. EMCOR has been benefiting from solid execution in the U.S. Construction segment — comprising the U.S. Mechanical and Electrical Construction units — as well as disciplined cost control. Also, accretive buyouts have been strengthening its overall results by adding new markets, opportunities and capabilities.
EMCOR’s 2022 and 2023 are expected to grow 10.2% and 17%, respectively.
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