Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE: MEC) will be reporting earnings this Tuesday after market close. Here’s what to look for.
Mayville Engineering met analysts’ revenue expectations last quarter, reporting revenues of $134.3 million, up 10.7% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Is Mayville Engineering 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 Mayville Engineering’s revenue to grow 3% year on year, a reversal from the 15.9% decrease it recorded in the same quarter last year.
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. Mayville Engineering has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Mayville Engineering’s peers in the engineered components and systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Worthington delivered year-on-year revenue growth of 24.4%, beating analysts’ expectations by 8.6%, and Applied Industrial reported revenues up 7.3%, topping estimates by 2.2%. Worthington traded down 4.6% following the results while Applied Industrial’s stock price was unchanged.
Read our full analysis of Worthington’s results here and Applied Industrial’s results here.
There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 9.4% on average over the last month. Mayville Engineering is up 22.2% during the same time and is heading into earnings with an average analyst price target of $26.70 (compared to the current share price of $22.21).
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