Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE: MEC) will be reporting earnings this Tuesday after the bell. Here’s what to look for.
Mayville Engineering beat analysts’ revenue expectations last quarter, reporting revenues of $144.8 million, up 6.8% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Mayville Engineering 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 Mayville Engineering’s revenue to grow 13.6% year on year, a reversal from the 19.1% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Mayville Engineering has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Mayville Engineering’s peers in the engineered components and systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. RBC Bearings delivered year-on-year revenue growth of 19.2%, beating analysts’ expectations by 2.1%, and Gates Industrial Corporation reported revenues up 6.6%, topping estimates by 1.7%.
Read our full analysis of RBC Bearings’s results here and Gates Industrial Corporation’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). 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 5% on average over the last month. Mayville Engineering is down 25.4% during the same time and is heading into earnings with an average analyst price target of $36.50 (compared to the current share price of $25.51).
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