Engineered products manufacturer ESCO (NYSE: ESE) will be reporting earnings this Thursday afternoon. Here’s what to look for.
ESCO missed analysts’ revenue expectations by 7% last quarter, reporting revenues of $296.3 million, up 26.9% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.
Is ESCO a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting ESCO’s revenue to grow 2.6% year on year to $306.4 million, slowing from the 9.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.14 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. ESCO has missed Wall Street’s revenue estimates twice since going public.
Looking at ESCO’s peers in the engineered components and systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Timken delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 3.6%, and Mayville Engineering reported revenues up 6.6%, topping estimates by 2.8%. Timken traded up 1.9% following the results while Mayville Engineering was down 10.6%.
Read our full analysis of Timken’s results here and Mayville Engineering’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the engineered components and systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7.2% on average over the last month. ESCO’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $225 (compared to the current share price of $214.31).
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