Engineered products manufacturer ESCO (NYSE: ESE) will be reporting results tomorrow after market hours. Here’s what investors should know.
ESCO beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $247 million, up 13.2% year on year. It was a stunning quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations.
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 6.9% year on year to $266.4 million, slowing from the 8.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.25 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. 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 Q1 results, giving us a hint as to what we can expect. Arrow Electronics’s revenues decreased 1.6% year on year, beating analysts’ expectations by 7.2%, and Gates Industrial Corporation reported a revenue decline of 1.7%, topping estimates by 2.9%. Arrow Electronics traded up 3.6% following the results while Gates Industrial Corporation was also up 6.2%.
Read our full analysis of Arrow Electronics’s results here and Gates Industrial Corporation’s results here.
There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 12.3% on average over the last month. ESCO is up 15.6% during the same time and is heading into earnings with an average analyst price target of $170.50 (compared to the current share price of $164.60).
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