Stantec (STN) Tops Q4 EPS by 19c ; Provides Outlook

Stantec (NYSE: STN) reported Q4 EPS of Cdn$0.82, Cdn$0.19 better than the analyst estimate of Cdn$0.63. Revenue for the quarter came in at Cdn$1.24 billion versus the consensus estimate of Cdn$906.81 million.

Outlook:-

2024 OutlookStantec is increasing its net revenue growth and adjusted diluted EPS growth targets and reaffirming other targets and expectations included in the 2024 guidance released on December 5, 2023 with the launch of its 2024-2026 Strategic Plan. These targets now include the acquisition of Morrison Hershfield, which closed on February 9, 2024.

2024 Annual Range
Net revenue growth 11% to 15%
16.2% to 17.2% Adjusted net income as % of net revenue (note) above 8%
11% to 16% Adjusted ROIC (note) above 11%

In setting Stantec's targets and guidance, the Company assumed an average value for the US dollar of $1.35, GBP $1.70, and AU $0.90. For all other underlying assumptions, see Stantec's 2023 Annual Report.

note: Adjusted EBITDA, adjusted net income, adjusted diluted EPS, and adjusted ROIC, are non-IFRS measures.

Stantec now expects that net revenue will increase between 11% and 15% in 2024. Stantec continues to see high levels of activity in all regions and reaffirms expectations for organic net revenue growth in the mid to high single digits, with the US and Global regions in the mid to high single digits, and Canada in the mid-single digits. The Company now expects acquisition net revenue growth in the mid-single digits from ZETCON, Morrison Hershfield, and ESD.

Stantec continues to anticipate adjusted EBITDA margin will be in the range of 16.2% - 17.2% and adjusted net income to achieve a margin above 8.0%. The Company now expects adjusted diluted EPS growth to be in the range of 12% - 16%.

For earnings history and earnings-related data on Stantec (STN) click here.

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