Vehicle systems manufacturer Commercial Vehicle Group (NASDAQ:CVGI) will be reporting earnings tomorrow after market close. Here’s what to expect.
Commercial Vehicle Group missed analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $229.9 million, down 12.3% year on year. It was a disappointing quarter for the company, with a miss of analysts’ EBITDA and earnings estimates.
Is Commercial Vehicle Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Commercial Vehicle Group’s revenue to decline 10% year on year to $222.1 million, a further deceleration from the 1.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Commercial Vehicle Group has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Commercial Vehicle Group’s peers in the heavy transportation equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Allison Transmission delivered year-on-year revenue growth of 12%, beating analysts’ expectations by 4.3%, and PACCAR reported a revenue decline of 6.4%, topping estimates by 1.4%. Allison Transmission traded up 8% following the results while PACCAR was down 5.3%.
Read our full analysis of Allison Transmission’s results here and PACCAR’s results here.
Investors in the heavy transportation equipment segment have had steady hands going into earnings, with share prices flat over the last month. Commercial Vehicle Group is down 5.4% during the same time and is heading into earnings with an average analyst price target of $7.33 (compared to the current share price of $2.95).
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