Welding and cutting equipment manufacturer ESAB (NYSE:ESAB) will be announcing earnings results this Thursday before market hours. Here’s what to look for.
ESAB beat analysts’ revenue expectations last quarter, reporting revenues of $745.6 million, up 9.9% year on year. It was a mixed quarter for the company, with a significant miss of analysts’ EPS estimates.
Is ESAB 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 ESAB’s revenue to grow 10% year on year, improving from the 1.2% increase 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. ESAB has missed Wall Street’s revenue estimates multiple times 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. Stanley Black & Decker posted flat year-on-year revenue, meeting analysts’ expectations, and Hyster-Yale Materials Handling reported a revenue decline of 15%, topping estimates by 1%. Stanley Black & Decker traded up 1.4% following the results.
Read our full analysis of Stanley Black & Decker’s results here and Hyster-Yale Materials Handling’s results here.
Investors in the professional tools and equipment segment have had steady hands going into earnings, with share prices flat over the last month. ESAB is down 2.4% during the same time and is heading into earnings with an average analyst price target of $135.40 (compared to the current share price of $94.76).
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