Environmental solutions provider CECO Environmental (NASDAQ:CECO) will be reporting results this Tuesday morning. Here’s what to look for.
CECO Environmental beat analysts’ revenue expectations last quarter, reporting revenues of $214.7 million, up 35.4% year on year. It was a satisfactory quarter for the company, with full-year revenue guidance exceeding analysts’ expectations but a significant miss of analysts’ EPS estimates.
Is CECO Environmental 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 CECO Environmental’s revenue to grow 11.9% year on year, slowing from the 39.9% 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. CECO Environmental has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at CECO Environmental’s peers in the business services & supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. UniFirst delivered year-on-year revenue growth of 3.4%, beating analysts’ expectations by 1.3%, and Cintas reported revenues up 8.9%, topping estimates by 0.7%. UniFirst traded up 1.8% following the results while Cintas was down 5.2%.
Read our full analysis of UniFirst’s results here and Cintas’s results here.
There has been positive sentiment among investors in the business services & supplies segment, with share prices up 13.2% on average over the last month. CECO Environmental is up 14.3% during the same time and is heading into earnings with an average analyst price target of $78.83 (compared to the current share price of $65.19).
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