Industrial technology solutions provider EnPro Industries (NYSE:NPO) will be announcing earnings results tomorrow morning. Here’s what investors should know.
Enpro missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $260.9 million, up 4.1% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.
Is Enpro a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Enpro’s revenue to be flat year on year at $250.1 million, improving from the 8.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.47 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. Enpro has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Enpro’s peers in the engineered components and systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ESCO delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 2.8%, and Arrow Electronics reported a revenue decline of 7.2%, topping estimates by 3.2%. ESCO traded up 19.8% following the results while Arrow Electronics was down 6.9%.
Read our full analysis of ESCO’s results here and Arrow Electronics’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the engineered components and systems stocks have shown solid performance, the group has generally underperformed, with share prices down 4.5% on average over the last month. Enpro is up 9.8% during the same time and is heading into earnings with an average analyst price target of $216.67 (compared to the current share price of $193.60).
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