Engineered products manufacturer ESCO (NYSE:ESE) will be announcing earnings results tomorrow after market close. Here’s what to look for.
ESCO missed analysts’ revenue expectations by 6% last quarter, reporting revenues of $260.8 million, up 4.8% year on year. It was a softer quarter for the company, with a miss of analysts’ EBITDA estimates and underwhelming earnings guidance for the full year.
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 3.6% year on year to $282.6 million, slowing from the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.44 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. 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 Q3 results, giving us a hint as to what we can expect. Graham Corporation delivered year-on-year revenue growth of 18.8%, beating analysts’ expectations by 7.8%, and Park-Ohio reported flat revenue, falling short of estimates by 4.8%. Graham Corporation traded up 23.8% following the results while Park-Ohio was down 4.1%.
Read our full analysis of Graham Corporation’s results here and Park-Ohio’s results here.
There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 5.4% on average over the last month. ESCO is up 15.2% during the same time and is heading into earnings with an average analyst price target of $135.75 (compared to the current share price of $144.01).
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