Industrial products company CSW (NYSE: CSW) will be announcing earnings results this Tuesday before market hours. Here’s what investors should know.
CSW missed analysts’ revenue expectations last quarter, reporting revenues of $233 million, up 20.3% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
Is CSW 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 CSW’s revenue to grow 31.8% year on year, improving from the 9.3% increase 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. CSW has missed Wall Street’s revenue estimates multiple 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 54.3%, beating analysts’ expectations by 29.5%, and Northwest Pipe reported revenues up 19.1%, topping estimates by 10.5%. AAON traded up 42.1% following the results while Northwest Pipe was also up 14.3%.
Read our full analysis of AAON’s results here and Northwest Pipe’s results here.
Investors in the hvac and water systems segment have had steady hands going into earnings, with share prices flat over the last month. CSW is down 5.9% during the same time and is heading into earnings with an average analyst price target of $322.71 (compared to the current share price of $281.22).
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