Welding and cutting equipment manufacturer ESAB (NYSE:ESAB) will be reporting results this Wednesday before market hours. Here’s what investors should know.
ESAB beat analysts’ revenue expectations last quarter, reporting revenues of $807.6 million, up 12.9% year on year. It was a strong quarter for the company, with a solid beat of analysts’ organic revenue estimates and a narrow beat of analysts’ EBITDA estimates.
Is ESAB a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ESAB’s revenue to grow 13.8% year on year, improving from the 8.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. ESAB has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at ESAB’s peers in the professional tools and equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Fortive delivered year-on-year revenue growth of 7.8%, beating analysts’ expectations by 3.3%, and Hillman reported revenues up 7.7%, falling short of estimates by 0.8%. Fortive traded up 6.8% following the results.
Read our full analysis of Fortive’s results here and Hillman’s results here.
Investors in the professional tools and equipment segment have had steady hands going into earnings, with share prices flat over the last month. ESAB is up 6.8% during the same time and is heading into earnings with an average analyst price target of $119.73 (compared to the current share price of $76.29).
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