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Stantec (STN) Stock Rises 11.4% Since Q3 Earnings Beat Estimates
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Stantec Inc. (STN - Free Report) reported better-than-expected third-quarter 2023 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimates.
Such results may have impressed investors as the stock has surged 11.4% since the earnings release on Nov 9.
Adjusted earnings (excluding 15 cents non-recurring items) of 85 cents per share exceeded the Zacks Consensus Estimate by 18.1% and improved 26.9% from the year-ago figure.
Total revenues of $981.6 million surpassed the consensus estimate by 5.8% but declined 13.1% on a year-over-year basis. The top line includes 9% organic growth.
Quarter Details
The project margin of $721.1 million increased 15% from the year-ago figure. Project margin, as a percentage of net revenues, was 54.8% due to strong project execution and enhanced by the resolution of change orders.
Adjusted EBITDA grew 24.8% to $241.3 million on a year-over-year basis. Adjusted EBITDA margin was 18.3%, up 160 basis points from the previous-year figure.
The backlog increased to $6.4 billion, up 7.6% from the Dec 31, 2022, figure. Of this, 5.5% is due to organic growth.
2023 Outlook
The company now expects net revenues in 2023 to grow 12-14%, instead of the previously expected 10-13% compared with 2022 levels.
Adjusted diluted EPS growth is now expected to be 17-20% (prior view: 12-15%).
Adjusted EBITDA margin is still expected to be in the band of 16.3-16.7%. STN targets to generate a return on invested capital of more than 11% (prior view: above 10.5%).
Recent Earnings Snapshots of Some Service Providers
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from a year ago.
EFX’s total revenues of $1.32 billion fell short of the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from a year ago on a reported basis and 6.5% on a local-currency basis.
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Stantec (STN) Stock Rises 11.4% Since Q3 Earnings Beat Estimates
Stantec Inc. (STN - Free Report) reported better-than-expected third-quarter 2023 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimates.
Such results may have impressed investors as the stock has surged 11.4% since the earnings release on Nov 9.
Adjusted earnings (excluding 15 cents non-recurring items) of 85 cents per share exceeded the Zacks Consensus Estimate by 18.1% and improved 26.9% from the year-ago figure.
Stantec Inc. Price, Consensus and EPS Surprise
Stantec Inc. price-consensus-eps-surprise-chart | Stantec Inc. Quote
Total revenues of $981.6 million surpassed the consensus estimate by 5.8% but declined 13.1% on a year-over-year basis. The top line includes 9% organic growth.
Quarter Details
The project margin of $721.1 million increased 15% from the year-ago figure. Project margin, as a percentage of net revenues, was 54.8% due to strong project execution and enhanced by the resolution of change orders.
Adjusted EBITDA grew 24.8% to $241.3 million on a year-over-year basis. Adjusted EBITDA margin was 18.3%, up 160 basis points from the previous-year figure.
The backlog increased to $6.4 billion, up 7.6% from the Dec 31, 2022, figure. Of this, 5.5% is due to organic growth.
2023 Outlook
The company now expects net revenues in 2023 to grow 12-14%, instead of the previously expected 10-13% compared with 2022 levels.
Adjusted diluted EPS growth is now expected to be 17-20% (prior view: 12-15%).
Adjusted EBITDA margin is still expected to be in the band of 16.3-16.7%. STN targets to generate a return on invested capital of more than 11% (prior view: above 10.5%).
Recent Earnings Snapshots of Some Service Providers
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from a year ago.
EFX’s total revenues of $1.32 billion fell short of the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from a year ago on a reported basis and 6.5% on a local-currency basis.