Industrial fluid and energy systems manufacturer Graham Corporation (NYSE: GHM) will be reporting results tomorrow morning. Here’s what investors should know.
Graham Corporation met analysts’ revenue expectations last quarter, reporting revenues of $49.95 million, up 5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ earnings and EBITDA estimates.
Is Graham Corporation a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Graham Corporation’s revenue to grow 10.3% year on year to $49.7 million, slowing from the 18.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 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. Graham Corporation has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 12.8% on average.
Looking at Graham Corporation’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. Gates Industrial Corporation’s revenues decreased 4.8% year on year, meeting analysts’ expectations, and Park-Ohio reported flat revenue, falling short of estimates by 4.8%. Gates Industrial Corporation traded up 6% following the results.
Read our full analysis of Gates Industrial 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 6.3% on average over the last month. Graham Corporation is up 7.4% during the same time and is heading into earnings with an average analyst price target of $39.83 (compared to the current share price of $32.47).
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