Water management company Northwest Pipe (NASDAQ:NWPX) will be reporting results this Thursday after market hours. Here’s what investors should know.
Northwest Pipe beat analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $116.1 million, up 2.6% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.
Is Northwest Pipe a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Northwest Pipe’s revenue to decline 6.6% year on year to $120.9 million, a reversal from the 11.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 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. Northwest Pipe has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Northwest Pipe’s peers in the hvac and water systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 3.4%, beating analysts’ expectations by 2.5%, and Zurn Elkay reported revenues up 7.9%, topping estimates by 4.5%. Lennox traded up 7.2% following the results while Zurn Elkay was also up 12%.
Read our full analysis of Lennox’s results here and Zurn Elkay’s results here.
There has been positive sentiment among investors in the hvac and water systems segment, with share prices up 2.1% on average over the last month. Northwest Pipe is down 2.1% during the same time and is heading into earnings with an average analyst price target of $53.33 (compared to the current share price of $41.26).
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