Railway infrastructure company L.B. Foster (NASDAQ:FSTR) will be announcing earnings results tomorrow before the bell. Here’s what to expect.
L.B. Foster missed analysts’ revenue expectations last quarter, reporting revenues of $138.3 million, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.
Is L.B. Foster 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 L.B. Foster’s revenue to grow 23.9% year on year, a reversal from the 5% decrease 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 to stay the course heading into earnings. L.B. Foster has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at L.B. Foster’s peers in the general industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Columbus McKinnon delivered year-on-year revenue growth of 10.5%, beating analysts’ expectations by 5.3%, and GE Aerospace reported revenues up 20.1%, topping estimates by 6.3%. Columbus McKinnon’s stock price was unchanged after the resultswhile GE Aerospace was down 7.7%.
Read our full analysis of Columbus McKinnon’s results here and GE Aerospace’s results here.
There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 4.7% on average over the last month. L.B. Foster is up 2.9% during the same time and is heading into earnings with an average analyst price target of $30 (compared to the current share price of $32.14).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.