Water handling and recycling company Aris Water (NYSE: ARIS) will be reporting results tomorrow after market hours. Here’s what to look for.
Aris Water beat analysts’ revenue expectations by 8.2% last quarter, reporting revenues of $118.6 million, up 13.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ sales volume estimates and a decent beat of analysts’ EBITDA estimates.
Is Aris Water a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Aris Water’s revenue to grow 9.4% year on year to $113.1 million, slowing from the 12.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 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. Aris Water has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Aris Water’s peers in the environmental and facilities services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Veralto delivered year-on-year revenue growth of 6.9%, beating analysts’ expectations by 4.1%, and Waste Connections reported revenues up 7.5%, in line with consensus estimates. Veralto traded up 3.1% following the results while Waste Connections’s stock price was unchanged.
Read our full analysis of Veralto’s results here and Waste Connections’s results here.
There has been positive sentiment among investors in the environmental and facilities services segment, with share prices up 13% on average over the last month. Aris Water is up 2.1% during the same time and is heading into earnings with an average analyst price target of $32.34 (compared to the current share price of $26.54).
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