Traffic solutions company Verra Mobility (NYSE: VRRM) will be reporting earnings tomorrow after market close. Here’s what to look for.

Verra Mobility missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $225.6 million, up 7.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and full-year EBITDA guidance slightly missing analysts’ expectations.

Is Verra Mobility a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Verra Mobility’s revenue to grow 4.8% year on year to $221.1 million, slowing from the 13.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 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. Verra Mobility has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.1% on average.

Looking at Verra Mobility’s peers in the electrical systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. LSI delivered year-on-year revenue growth of 35.5%, beating analysts’ expectations by 14.3%, and Vertiv reported revenues up 25.8%, topping estimates by 8.8%. LSI traded up 11.7% following the results while Vertiv was down 11.3%.

Read our full analysis of LSI’s results here and Vertiv’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the electrical systems stocks have shown solid performance, the group has generally underperformed, with share prices down 5.6% on average over the last month. Verra Mobility’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $29 (compared to the current share price of $26.90).

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