KeyBanc Downgrades Sterling Construction (STRL) to Hold; Disappointing project Issue-Related Charges

KeyBanc downgraded Sterling Construction (NASDAQ: STRL) from Buy to Hold.

KeyBanc analyst said, "We are downgrading STRL to a HOLD rating, after STRL pre-announced that 4Q11 results would be impacted by $0.23-$0.27 per share (aftertax) on account of a revision in project estimations on several projects - the Company will also be taking a charge related to goodwill impairment post its annual test/review of goodwill. We view the project issue-related charges as disappointing and note that these follow a 3Q that was impacted by a similar profile of charges. This translates into a loss quarter for 4Q11 of at least $0.02 (excluding any goodwill impairment charge) vs. our estimate of $0.24 and consensus of $0.22."

For an analyst ratings summary and ratings history on Sterling Construction click here. For more ratings news on Sterling Construction click here.

Shares of Sterling Construction closed at $12.30 yesterday.

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