Industrial fluid and energy systems manufacturer Graham Corporation (NYSE: GHM) will be announcing earnings results tomorrow morning. Here’s what you need to know.
Graham Corporation beat analysts’ revenue expectations by 7.8% last quarter, reporting revenues of $53.56 million, up 18.8% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
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% year on year to $49.5 million, improving from the 9.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 13.4% on average.
Looking at Graham Corporation’s peers in the engineered components and systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Applied Industrial posted flat year-on-year revenue, meeting analysts’ expectations, and RBC Bearings reported revenues up 5.5%, in line with consensus estimates. Applied Industrial traded up 4.9% following the results while RBC Bearings was also up 13.9%.
Read our full analysis of Applied Industrial’s results here and RBC Bearings’s results here.
There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 2.8% on average over the last month. Graham Corporation is up 19.2% during the same time and is heading into earnings with an average analyst price target of $52.17 (compared to the current share price of $51.50).
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