Engineered products manufacturer ESCO (NYSE:ESE) will be reporting results tomorrow afternoon. Here’s what you need to know.
ESCO beat analysts’ revenue expectations by 5.6% last quarter, reporting revenues of $298.5 million, up 9.5% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year revenue guidance missing analysts’ expectations significantly.
Is ESCO a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ESCO’s revenue to grow 10.1% year on year to $240.4 million, improving from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ESCO has missed Wall Street’s revenue estimates three times over the last two years.
Looking at ESCO’s peers in the engineered components and systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Applied Industrial posted flat year-on-year revenue, meeting analysts’ expectations, and RBC Bearings reported revenues up 5.5%, in line with consensus estimates. Applied Industrial traded up 4.9% following the results while RBC Bearings was also up 13.9%.
Read our full analysis of Applied Industrial’s results here and RBC Bearings’s results here.
Investors in the engineered components and systems segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. ESCO’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $147.75 (compared to the current share price of $131.80).
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