Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE: MEC) will be reporting results this Tuesday after market close. Here’s what you need to know.
Mayville Engineering missed analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $132.3 million, down 19.1% year on year. It was a slower quarter for the company, with a miss of analysts’ Commercial Vehicle revenue estimates and full-year revenue guidance missing analysts’ expectations significantly.
Is Mayville Engineering a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Mayville Engineering’s revenue to grow 3.7% year on year to $140.4 million, a reversal from the 14.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 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. Mayville Engineering has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Mayville Engineering’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. Timken delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 3.6%, and Applied Industrial reported revenues up 9.2%, topping estimates by 1.1%. Timken traded up 1.9% following the results while Applied Industrial was down 2.3%.
Read our full analysis of Timken’s results here and Applied Industrial’s results here.
Investors in the engineered components and systems segment have had steady hands going into earnings, with share prices flat over the last month. Mayville Engineering is up 32.8% during the same time and is heading into earnings with an average analyst price target of $22 (compared to the current share price of $17.82).
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