Industrial products company CSW (NASDAQ: CSW) will be announcing earnings results this Thursday before market open. Here’s what you need to know.
CSW missed analysts’ revenue expectations by 5.2% last quarter, reporting revenues of $263.6 million, up 16.6% 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’ EBITDA estimates.
Is CSW a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting CSW’s revenue to grow 22.2% year on year to $278.4 million, improving from the 11.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.76 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 only missed Wall Street’s revenue estimates once since going public and has exceeded top-line expectations by -5.2% on average.
Looking at CSW’s peers in the hvac and water systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Zurn Elkay delivered year-on-year revenue growth of 11.1%, beating analysts’ expectations by 3%, and A. O. Smith reported revenues up 4.4%, in line with consensus estimates.
Read our full analysis of Zurn Elkay’s results here and A. O. Smith’s results here.
There has been positive sentiment among investors in the hvac and water systems segment, with share prices up 3.1% on average over the last month. CSW’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $287.83 (compared to the current share price of $241.97).
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