Air quality and fluid handling company CECO (NASDAQ:CECO) will be reporting results tomorrow morning. Here’s what investors should know.
CECO missed analysts’ revenue expectations by 14.4% last quarter, reporting revenues of $135.5 million, down 9.3% year on year. It was a disappointing quarter for the company, with a miss of analysts’ revenue estimates and full-year revenue guidance missing analysts’ expectations significantly.
Is CECO a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting CECO’s revenue to grow 1.7% year on year to $156.3 million, slowing from the 32.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 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. CECO has missed Wall Street’s revenue estimates three times over the last two years.
Looking at CECO’s peers in the gas and liquid handling segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Standex delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 0.5%, and Ingersoll Rand reported revenues up 4.2%, in line with consensus estimates. Standex traded down 2.2% following the results while Ingersoll Rand was also down 7.4%.
Read our full analysis of Standex’s results here and Ingersoll Rand’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the gas and liquid handling stocks have shown solid performance, the group has generally underperformed, with share prices down 5.8% on average over the last month. CECO is down 20.3% during the same time and is heading into earnings with an average analyst price target of $36.20 (compared to the current share price of $22.61).
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