Water management company Northwest Pipe (NASDAQ: NWPX) will be reporting results this Wednesday afternoon. Here’s what to look for.
Northwest Pipe beat analysts’ revenue expectations last quarter, reporting revenues of $125.6 million, up 5% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Northwest Pipe 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 Northwest Pipe’s revenue to grow 7.7% year on year, improving from the 2.6% 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 to stay the course heading into earnings. Northwest Pipe rarely misses Wall Street’s revenue estimates.
Looking at Northwest Pipe’s peers in the building products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Zurn Elkay delivered year-on-year revenue growth of 11.4%, beating analysts’ expectations by 3.2%, and Simpson reported revenues up 9.1%, topping estimates by 6.4%. Zurn Elkay traded up 9.5% following the results.
Read our full analysis of Zurn Elkay’s results here and Simpson’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 15.1% on average over the last month. Northwest Pipe is up 10.1% during the same time and is heading into earnings with an average analyst price target of $84 (compared to the current share price of $83.40).
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