Industrial fluid and energy systems manufacturer Graham Corporation (NYSE: GHM) will be reporting results tomorrow before market open. Here’s what to look for.
Graham Corporation missed analysts’ revenue expectations by 5% last quarter, reporting revenues of $47.04 million, up 7.3% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.
Is Graham Corporation a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Graham Corporation’s revenue to grow 13.4% year on year to $55.67 million, in line with the 14% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 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. Graham Corporation has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Graham Corporation’s peers in the engineered components and systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Regal Rexnord’s revenues decreased 8.4% year on year, beating analysts’ expectations by 3%, and Arrow Electronics reported a revenue decline of 1.6%, topping estimates by 7.2%. Regal Rexnord traded up 13.6% following the results while Arrow Electronics was also up 3.6%.
Read our full analysis of Regal Rexnord’s results here and Arrow Electronics’s results here.
Investors in the engineered components and systems segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Graham Corporation is up 16.5% during the same time and is heading into earnings with an average analyst price target of $52.67 (compared to the current share price of $42).
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