Aviation and fleet aftermarket services provider VSE Corporation (NASDAQ: VSEC) will be announcing earnings results this Tuesday afternoon. Here’s what to look for.
VSE Corporation beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $272.1 million, up 41.1% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is VSE Corporation a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting VSE Corporation’s revenue to grow 1.2% year on year to $277 million, slowing from the 18.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 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. VSE Corporation has missed Wall Street’s revenue estimates three times over the last two years.
Looking at VSE Corporation’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. MSC Industrial delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 1.5%, and Fastenal reported revenues up 11.7%, in line with consensus estimates. MSC Industrial traded up 1.1% following the results while Fastenal was down 6.7%.
Read our full analysis of MSC Industrial’s results here and Fastenal’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 3.7% on average over the last month. VSE Corporation is up 9.2% during the same time and is heading into earnings with an average analyst price target of $189.07 (compared to the current share price of $179.34).
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