Industrial components supplier NN (NASDAQ:NNBR) will be announcing earnings results this Wednesday after the bell. Here’s what investors should know.
NN missed analysts’ revenue expectations last quarter, reporting revenues of $104.7 million, down 1.7% year on year. It was a softer quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Is NN 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 NN’s revenue to be flat year on year, improving from the 12.8% 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. NN has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at NN’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 7.6% on average over the last month. NN is up 65% during the same time and is heading into earnings with an average analyst price target of $5.50 (compared to the current share price of $2.43).
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