Aviation and fleet aftermarket services provider VSE Corporation (NASDAQ:VSEC) will be reporting earnings this Wednesday after market close. Here’s what investors should know.
VSE Corporation missed analysts’ revenue expectations by 6.7% last quarter, reporting revenues of $256 million, up 6% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is VSE Corporation a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting VSE Corporation’s revenue to be flat year on year at $265.2 million, slowing from the 29.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 per share.
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. VSE Corporation has missed Wall Street’s revenue estimates three times over the last two years.
Looking at VSE Corporation’s peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Fastenal delivered year-on-year revenue growth of 8.6%, beating analysts’ expectations by 0.5%, and MSC Industrial reported flat revenue, in line with consensus estimates. Fastenal traded up 4.2% following the results while MSC Industrial was also up 5.4%.
Read our full analysis of Fastenal’s results here and MSC Industrial’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 6.5% on average over the last month. VSE Corporation is up 6.9% during the same time and is heading into earnings with an average analyst price target of $148.75 (compared to the current share price of $139.99).
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.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.