Construction company Sterling Infrastructure (NASDAQ: STRL) is controlling costs and delivering a lot better profitability numbers than Wall Street had predicted. Investors are buying in, sending shares of Sterling up 21% as of 12:30 ET on Tuesday.

Sterling is focused on large construction projects like transportation rehab and construction, new buildings, and site prep for data centers. The company posted fourth-quarter earnings of $1.30 per share, beating the $1 estimate, despite sales that at $486 million missed expectations by $36 million.

Earnings were up 94% on a per-share basis year over year thanks to a 350-basis-point improvement in gross margins. Sterling ended the year with a backlog of more than $2 billion in future business, a 46% increase from the end of 2022.

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Source Fool.com