Welding and cutting equipment manufacturer ESAB (NYSE: ESAB) will be reporting results this Wednesday before market hours. Here’s what investors should know.
ESAB beat analysts’ revenue expectations by 6% last quarter, reporting revenues of $715.6 million, up 1.2% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.
Is ESAB a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting ESAB’s revenue to grow 3.4% year on year to $696 million, a reversal from the 1.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.27 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. ESAB has missed Wall Street’s revenue estimates twice over the last two years.
Looking at ESAB’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Snap-on delivered year-on-year revenue growth of 3.6%, beating analysts’ expectations by 2.7%, and GE Aerospace reported revenues up 26.4%, topping estimates by 3.7%. Snap-on traded up 2.2% following the results while GE Aerospace was down 1.6%.
Read our full analysis of Snap-on’s results here and GE Aerospace’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 3.8% on average over the last month. ESAB is up 10.8% during the same time and is heading into earnings with an average analyst price target of $140.27 (compared to the current share price of $121.47).
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