Traffic solutions company Verra Mobility (NYSE:VRRM) will be reporting earnings tomorrow after market hours. Here's what to look for.
Verra Mobility beat analysts' revenue expectations by 3.3% last quarter, reporting revenues of $209.7 million, up 9.3% year on year. It was a very strong quarter for the company, with a decent beat of analysts' earnings estimates.
Is Verra Mobility a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Verra Mobility's revenue to grow 7.8% year on year to $220.4 million, slowing from the 9.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 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. Verra Mobility has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.6% on average.
Looking at Verra Mobility's peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Powell delivered year-on-year revenue growth of 49.8%, beating analysts' expectations by 29.7%, and Allegion reported revenues up 5.8%, topping estimates by 1.1%. Powell traded up 37.7% following the results while Allegion was also up 4.4%.
Read our full analysis of Powell's results here and Allegion's results here.
Investors in the electrical systems segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Verra Mobility is up 3.4% during the same time and is heading into earnings with an average analyst price target of $29.9 (compared to the current share price of $28.89).
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