Manufacturing equipment and systems provider Advanced Energy (NASDAQ:AEIS) will be reporting earnings this Tuesday after market close. Here’s what to expect.
Advanced Energy beat analysts’ revenue expectations by 5% last quarter, reporting revenues of $463.3 million, up 23.8% year on year. It was a stunning quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Is Advanced Energy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Advanced Energy’s revenue to grow 14% year on year to $473.7 million, improving from the 2.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.78 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. Advanced Energy has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Advanced Energy’s peers in the electrical equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Littelfuse delivered year-on-year revenue growth of 12.2%, beating analysts’ expectations by 2%, and Corning reported revenues up 13.9%, topping estimates by 1%. Littelfuse traded up 10.2% following the results while Corning was down 6.1%.
Read our full analysis of Littelfuse’s results here and Corning’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 7.7% on average over the last month. Advanced Energy is up 20.1% during the same time and is heading into earnings with an average analyst price target of $267.22 (compared to the current share price of $273.33).
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