Industrial products company CSW (NASDAQ: CSWI) will be reporting earnings tomorrow morning. Here’s what to look for.
CSW beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $193.6 million, up 10.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and EBITDA in line with analysts’ estimates.
Is CSW a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting CSW’s revenue to grow 10.4% year on year to $232.8 million, improving from the 7.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.22 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. CSW has missed Wall Street’s revenue estimates three times over the last two years.
Looking at CSW’s peers in the hvac and water systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. AAON delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 10.9%, and Trane Technologies reported revenues up 11.2%, topping estimates by 5%. AAON traded up 6.1% following the results while Trane Technologies was also up 11%.
Read our full analysis of AAON’s results here and Trane Technologies’s results here.
There has been positive sentiment among investors in the hvac and water systems segment, with share prices up 17.2% on average over the last month. CSW is up 6.7% during the same time and is heading into earnings with an average analyst price target of $338 (compared to the current share price of $319).
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