Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE:MEC) will be announcing earnings results tomorrow after market close. Here’s what investors should know.
Mayville Engineering missed analysts’ revenue expectations by 13.2% last quarter, reporting revenues of $135.4 million, down 14.4% year on year. It was a disappointing quarter for the company, with a miss of analysts’ Commercial Vehicle revenue estimates.
Is Mayville Engineering a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Mayville Engineering’s revenue to decline 16.5% year on year to $124.1 million, a reversal from the 15.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 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. Mayville Engineering has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Mayville Engineering’s peers in the engineered components and systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ESCO delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 2.8%, and Arrow Electronics reported a revenue decline of 7.2%, topping estimates by 3.2%. ESCO traded up 19.8% following the results while Arrow Electronics was down 6.9%.
Read our full analysis of ESCO’s results here and Arrow Electronics’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 engineered components and systems stocks have shown solid performance, the group has generally underperformed, with share prices down 4.9% on average over the last month. Mayville Engineering is down 3% during the same time and is heading into earnings with an average analyst price target of $21 (compared to the current share price of $14.95).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.