Scotiabank Issues Pessimistic Outlook for Stantec Earnings

Stantec Inc. (NYSE:STN) (TSE:STN) – Scotiabank reduced their FY2027 EPS estimates for shares of Stantec in a note issued to investors on Wednesday, May 20th. Scotiabank analyst J. Goldman now expects that the business services provider will earn $4.86 per share for the year, down from their prior estimate of $4.92. Scotiabank currently has a “Outperform” rating on the stock. The consensus estimate for Stantec’s current full-year earnings is $4.50 per share.

A number of other brokerages have also recently issued reports on STN. Zacks Research cut shares of Stantec from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating on shares of Stantec in a report on Tuesday. ATB Cormark Capital Markets upgraded shares of Stantec from a “hold” rating to a “moderate buy” rating in a research note on Friday, May 15th. Weiss Ratings lowered shares of Stantec from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, May 15th. Finally, Wall Street Zen upgraded shares of Stantec from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 9th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $175.00.

Stantec Stock Up 1.6%

Shares of STN stock opened at $76.10 on Friday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.35 and a current ratio of 1.35. The firm’s 50-day moving average is $86.91 and its 200-day moving average is $93.42. The stock has a market cap of $8.68 billion, a price-to-earnings ratio of 24.39 and a beta of 1.06. Stantec has a 52-week low of $72.46 and a 52-week high of $114.51.

Stantec (NYSE:STN) (TSE:STN) last issued its earnings results on Wednesday, May 13th. The business services provider reported $0.97 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.95 by $0.02. The company had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.23 billion. Stantec had a net margin of 5.92% and a return on equity of 17.69%. Stantec has set its FY 2026 guidance at 4.370-4.490 EPS.

Stantec Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be paid a $0.245 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $0.98 dividend on an annualized basis and a yield of 1.3%. Stantec’s dividend payout ratio is 22.44%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of STN. Alliancebernstein L.P. grew its stake in Stantec by 82.4% in the 2nd quarter. Alliancebernstein L.P. now owns 3,449,311 shares of the business services provider’s stock valued at $374,871,000 after buying an additional 1,558,703 shares during the last quarter. Norges Bank acquired a new position in shares of Stantec during the 4th quarter worth approximately $124,217,000. BCV Asset Management Inc. acquired a new position in shares of Stantec during the 4th quarter worth approximately $93,015,000. Bank of Montreal Can grew its position in shares of Stantec by 25.2% during the 4th quarter. Bank of Montreal Can now owns 4,464,733 shares of the business services provider’s stock worth $421,321,000 after purchasing an additional 897,912 shares in the last quarter. Finally, Man Group plc grew its position in shares of Stantec by 103.5% during the 4th quarter. Man Group plc now owns 1,579,537 shares of the business services provider’s stock worth $149,247,000 after purchasing an additional 803,322 shares in the last quarter. Institutional investors and hedge funds own 63.86% of the company’s stock.

Stantec Company Profile

Stantec is a global design and consulting firm offering professional services in engineering, architecture, and environmental sciences. The company partners with public and private clients to deliver solutions spanning infrastructure, water, energy and resources, and community development. Through an integrated approach, Stantec manages projects from initial planning and conceptual design through construction and commissioning, focusing on sustainability and innovation.

The firm’s service portfolio includes civil infrastructure design, building systems engineering, environmental assessments, and project management.