Industrial components supplier NN (NASDAQ: NNBR) will be reporting results this Wednesday after market close. Here’s what to look for.
NN missed analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $105.7 million, down 12.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and full-year revenue guidance missing analysts’ expectations.
Is NN a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting NN’s revenue to decline 9.9% year on year to $110.8 million, a further deceleration from the 1.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at $0 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. NN has missed Wall Street’s revenue estimates five times over the last two years.
Looking at NN’s peers in the engineered components and systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Arrow Electronics delivered year-on-year revenue growth of 10%, beating analysts’ expectations by 5.9%, and Worthington reported flat revenue, topping estimates by 5.6%. Arrow Electronics traded down 11.7% following the results while Worthington was up 1.8%.
Read our full analysis of Arrow Electronics’s results here and Worthington’s results here.
Investors in the engineered components and systems segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. NN is up 5% during the same time and is heading into earnings with an average analyst price target of $5.75 (compared to the current share price of $2.29).
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