Engineered products manufacturer ESCO (NYSE:ESE) will be reporting results this Thursday afternoon. Here’s what to look for.
ESCO missed analysts’ revenue expectations last quarter, reporting revenues of $309.3 million, up 33.5% year on year. It was a decent quarter for the company, with full-year revenue guidance meeting analysts’ expectations.
Is ESCO 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 ESCO’s revenue to grow 15.2% year on year, slowing from the 26.9% 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. ESCO has missed Wall Street’s revenue estimates multiple 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. Enpro delivered year-on-year revenue growth of 17.6%, beating analysts’ expectations by 4.7%, and Mayville Engineering reported revenues up 23.2%, topping estimates by 7.9%.
Read our full analysis of Enpro’s results here and Mayville Engineering’s results here.
Investors in the engineered components and systems segment have had steady hands going into earnings, with share prices flat over the last month. ESCO is down 5.4% during the same time and is heading into earnings with an average analyst price target of $385 (compared to the current share price of $324.21).
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