Shareholders will be ecstatic, with their stake up 26% over the past week following Sterling Infrastructure, Inc.'s (NASDAQ:STRL) latest quarterly results. Revenues US$594m disappointed slightly, at2.3% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of US$1.97 coming in 18% above what was anticipated. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Sterling Infrastructure

After the latest results, the twin analysts covering Sterling Infrastructure are now predicting revenues of US$2.32b in 2025. If met, this would reflect a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.4% to US$6.45. Before this earnings report, the analysts had been forecasting revenues of US$2.33b and earnings per share (EPS) of US$6.02 in 2025. So the consensus seems to have become somewhat more optimistic on Sterling Infrastructure's earnings potential following these results.

The consensus price target rose 37% to US$192, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Sterling Infrastructure's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.1% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.6% annually. So it's pretty clear that, while Sterling Infrastructure's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sterling Infrastructure following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Sterling Infrastructure going out as far as 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Sterling Infrastructure , and understanding it should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.