Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE: MEC) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
Mayville Engineering missed analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $121.3 million, down 18.4% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.
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 16.6% year on year to $134.5 million, a reversal from the 13.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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 Q1 results, giving us a hint as to what we can expect. Arrow Electronics’s revenues decreased 1.6% year on year, beating analysts’ expectations by 7.2%, and Gates Industrial Corporation reported a revenue decline of 1.7%, topping estimates by 2.9%. Arrow Electronics traded up 3.6% following the results while Gates Industrial Corporation was also up 6.2%.
Read our full analysis of Arrow Electronics’s results here and Gates Industrial Corporation’s results here.
There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 13% on average over the last month. Mayville Engineering is up 7.9% during the same time and is heading into earnings with an average analyst price target of $21.50 (compared to the current share price of $13.32).
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