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 -1.49% change in stock price 10 days leading up to the earnings, and a +2.60% change 10 days following the report. On the earnings day itself, the stock moves by +0.14%. This data can give you a slight idea of what to expect for the next quarter's release.
STN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.52B
15.80%
2.11%
Gross Margin
48.68%
-1.48%
-0.51%
Operating Margin
11.10%
-10.70%
9.58%
Net Margin
6.77%
-14.20%
19.40%
EPS
0.90
-4.26%
21.62%
No Data Available
STN Earnings Analysis
Stantec, Inc. Corporation (STN.N) Earnings Conference Call
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
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STN Earning Call Sentiment
Stantec Inc. (STN) Q3 2024 Earnings Call Transcript
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00:00
00:00
STN.N
-1.14%Positive
The earnings call presents a positive outlook with strong financial performance, including 16% YoY net revenue growth and 18% EBITDA margin. Despite supply chain challenges, the company maintains a robust backlog and positive organic growth. The Q&A reveals confidence in water and building segments, and a promising M&A pipeline. However, lack of a shareholder return plan and some uncertainties in project execution are noted. Overall, the strong financial metrics and optimistic guidance suggest a positive stock price movement in the short term.
