Industrial fluid and energy systems manufacturer Graham Corporation (NYSE: GHM) will be announcing earnings results this Monday before the bell. Here’s what to look for.
Graham Corporation beat analysts’ revenue expectations last quarter, reporting revenues of $56.7 million, up 20.5% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Graham Corporation 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 Graham Corporation’s revenue to grow 1% year on year, slowing from the 20.9% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Graham Corporation has missed Wall Street’s revenue estimates multiple times 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. Arrow Electronics delivered year-on-year revenue growth of 39%, beating analysts’ expectations by 12.9%, and Mayville Engineering reported revenues up 6.8%, topping estimates by 3.7%. Arrow Electronics traded up 1.6% following the results while Mayville Engineering was also up 2.6%.
Read our full analysis of Arrow Electronics’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. Graham Corporation is up 9.3% during the same time and is heading into earnings with an average analyst price target of $100.25 (compared to the current share price of $107.31).
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