STN Earnings Prediction
The chart below shows how STN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STN sees a -1.68% change in stock price 10 days leading up to the earnings, and a +2.40% change 10 days following the report. On the earnings day itself, the stock moves by +0.92%. This data can give you a slight idea of what to expect for the next quarter's release.
STN Key Earning Data
STN Earnings Analysis
Positive
Record Net Revenue Growth: 1. Record Net Revenue: Stantec achieved record net revenue of CAD1.5 billion in Q3 2024, representing a 16% increase compared to Q3 2023, driven by 6.5% organic growth and nearly 8% from acquisitions.
Adjusted EBITDA Increase: 2. Strong Adjusted EBITDA: The company reported an adjusted EBITDA of CAD275 million for the quarter, up almost 14% year-over-year, with a healthy margin of 18%.
Record Backlog Increase: 3. Significant Backlog Growth: Stantec's backlog reached a record CAD7.3 billion, reflecting a 9.5% increase from acquisitions and nearly 5% organic growth since December 2023.
Customer Revenue Increase: 4. Impressive Customer Growth: The U.S. business saw a 9% increase in net revenue, with 5.6% organic growth, supported by strong public and private investments across all business units.
2024 Revenue Guidance Increase: 5. Increased Guidance for 2024: Based on strong Q3 performance, Stantec raised its net revenue growth guidance for 2024 to 14.5% to 15%, up from the previous range of 12% to 15%.
Negative
Energy & Resources Decline: 1. Decline in Energy & Resources Segment: The global Energy & Resources business, particularly in mining, experienced a slight retraction this quarter, negatively impacting overall growth despite gains in the US and Canada.
Goodwill Reduction Impact: 2. Non-Cash Charge Impacting Goodwill: Adjustments from IFRS guidance resulted in a non-cash charge reducing goodwill by approximately CAD310 million, which also decreased retained earnings by a similar amount, reflecting accounting changes rather than operational performance.
Rising Admin and Marketing Costs: 3. Increased Admin and Marketing Expenses: Admin and marketing expenses as a percentage of net revenue rose to 37.5% in Q3, up from 37.3% a year ago, indicating higher costs associated with labor training and integration of acquisitions.
Utilization Rate Decline: 4. Lower Utilization Rates: The company reported slightly lower utilization rates as staff were transitioned off major projects, which could impact operational efficiency and profitability in the near term.
Project Ramp-Up Delays: 5. Delayed Project Ramp-Up: The Energy & Resources segment faced delays in the ramp-up of new projects and the wind down of some projects late in 2023, contributing to uncertainty in future revenue growth for this segment.
STN FAQs
How does STN typically perform around its earnings report dates?
STN's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.68% change leading up to the report and a +2.40% change in the 10 days following the release.
Is Stantec Inc. (STN) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
STN Earning Call Sentiment
Stantec Inc. (STN) Q3 2024 Earnings Call Transcript
STN.N
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