Industrial components supplier NN (NASDAQ: NNBR) will be announcing earnings results this Wednesday afternoon. Here’s what to expect.
NN beat analysts’ revenue expectations last quarter, reporting revenues of $118.5 million, up 12.1% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is NN 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 NN’s revenue to grow 7.6% year on year, a reversal from the 12.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. NN has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at NN’s peers in the engineered components and systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. RBC Bearings delivered year-on-year revenue growth of 19.2%, beating analysts’ expectations by 2.1%, and Gates Industrial Corporation reported revenues up 6.6%, topping estimates by 1.7%. RBC Bearings traded up 1.5% following the results while Gates Industrial Corporation was also up 14%.
Read our full analysis of RBC Bearings’s results here and Gates Industrial Corporation’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the engineered components and systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. NN is down 1.5% during the same time and is heading into earnings with an average analyst price target of $5.50 (compared to the current share price of $3.64).
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