Heating and cooling solutions company AAON (NASDAQ: AAON) will be reporting results this Thursday morning. Here’s what investors should know.
AAON missed analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $311.6 million, flat year on year. It was a disappointing quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.
Is AAON a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting AAON’s revenue to grow 3.1% year on year to $337.5 million, slowing from the 4.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 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. AAON has only missed Wall Street’s revenue estimates once since going public and has exceeded top-line expectations by 3.4% on average.
Looking at AAON’s peers in the hvac and water systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Northwest Pipe delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 14.4%, and Zurn Elkay reported revenues up 11.1%, topping estimates by 3%. Northwest Pipe traded up 1.7% following the results while Zurn Elkay was also up 4.1%.
Read our full analysis of Northwest Pipe’s results here and Zurn Elkay’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the hvac and water systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.5% on average over the last month. AAON is down 11.7% during the same time and is heading into earnings with an average analyst price target of $103.25 (compared to the current share price of $91.72).
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