Safety certification company UL Solutions (NYSE: ULS) will be announcing earnings results this Tuesday morning. Here’s what investors should know.
UL Solutions beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $776 million, up 6.3% year on year. It was a slower quarter for the company, with EPS in line with analysts’ estimates.
Is UL Solutions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting UL Solutions’s revenue to grow 5.5% year on year to $771.2 million, slowing from the 8.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 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. UL Solutions has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.4% on average.
Looking at UL Solutions’s peers in the professional services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Booz Allen Hamilton’s revenues decreased 8.1% year on year, missing analysts’ expectations by 2.7%, and ICF International reported a revenue decline of 10%, falling short of estimates by 3.9%. Booz Allen Hamilton traded down 13.7% following the results while ICF International was also down 5.9%.
Read our full analysis of Booz Allen Hamilton’s results here and ICF International’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 professional services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. UL Solutions is up 5.5% during the same time and is heading into earnings with an average analyst price target of $71.77 (compared to the current share price of $77.87).
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