Traffic solutions company Verra Mobility (NYSE: VRRM) will be reporting earnings tomorrow after market close. Here’s what investors should know.
Verra Mobility met analysts’ revenue expectations last quarter, reporting revenues of $221.5 million, up 5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
Is Verra Mobility a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Verra Mobility’s revenue to grow 3.5% year on year to $217 million, slowing from the 9.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 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. Verra Mobility has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.
Looking at Verra Mobility’s peers in the electrical systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 5.4%, beating analysts’ expectations by 2%, and Vertiv reported revenues up 24.2%, topping estimates by 5.2%. Allegion traded up 7.9% following the results while Vertiv was also up 16.8%.
Read our full analysis of Allegion’s results here and Vertiv’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 12.3% on average over the last month. Verra Mobility is up 2.9% during the same time and is heading into earnings with an average analyst price target of $29.08 (compared to the current share price of $22.31).
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