Aviation and fleet aftermarket services provider VSE Corporation (NASDAQ: VSEC) will be announcing earnings results this Wednesday after the bell. Here’s what to look for.
VSE Corporation beat analysts’ revenue expectations last quarter, reporting revenues of $449.1 million, up 65% year on year. It was an incredible quarter for the company, with a 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 for active Edge members.
This quarter, the market is expecting VSE Corporation’s revenue to grow 81.3% year on year, improving from the 38.9% 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. VSE Corporation has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at VSE Corporation’s peers in the maintenance and repair distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. WESCO delivered year-on-year revenue growth of 16.6%, beating analysts’ expectations by 5.1%, and Fastenal reported revenues up 15.5%, topping estimates by 1%. WESCO traded down 1.2% following the results while Fastenal was also down 2%.
Read our full analysis of WESCO’s results here and Fastenal’s results here.
Investors in the maintenance and repair distributors segment have had steady hands going into earnings, with share prices flat over the last month. VSE Corporation is down 2.3% during the same time and is heading into earnings with an average analyst price target of $250.44 (compared to the current share price of $164.32).
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