Welding and cutting equipment manufacturer ESAB (NYSE: ESAB) will be reporting earnings this Wednesday before the bell. Here’s what to expect.
ESAB beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $678.1 million, down 1.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is ESAB a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ESAB’s revenue to be flat year on year at $707.2 million, improving from the 1.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.35 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ESAB has missed Wall Street’s revenue estimates twice over the last two years.
Looking at ESAB’s peers in the professional tools and equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lincoln Electric delivered year-on-year revenue growth of 6.6%, beating analysts’ expectations by 5.1%, and Snap-on reported flat revenue, topping estimates by 2.1%. Lincoln Electric traded up 7.8% following the results while Snap-on was also up 7.4%.
Read our full analysis of Lincoln Electric’s results here and Snap-on’s results here.
Investors in the professional tools and equipment segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. ESAB is up 4.8% during the same time and is heading into earnings with an average analyst price target of $137.44 (compared to the current share price of $131.03).
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