Engineered products manufacturer ESCO (NYSE:ESE) will be announcing earnings results this Thursday after the bell. Here’s what investors should know.
ESCO met analysts’ revenue expectations last quarter, reporting revenues of $265.5 million, up 6.6% year on year. It was a very strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and full-year revenue guidance exceeding analysts’ expectations.
Is ESCO a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ESCO’s revenue to grow 22.2% year on year to $318.6 million, improving from the 4.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.65 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. ESCO has missed Wall Street’s revenue estimates four times over the last two years.
Looking at ESCO’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.
There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 2.1% on average over the last month. ESCO’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $194.33 (compared to the current share price of $191.88).
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