Infrastructure equipment supplier SPX Technologies (NYSE: SPXC) will be reporting earnings this Thursday after the bell. Here’s what investors should know.
SPX Technologies beat analysts’ revenue expectations last quarter, reporting revenues of $679 million, up 22.9% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
Is SPX Technologies 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 SPX Technologies’s revenue to grow 20% year on year, slowing from the 22.6% increase 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. SPX Technologies rarely misses Wall Street’s revenue estimates.
Looking at SPX Technologies’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 11.8%, beating analysts’ expectations by 6.4%, and Graco reported revenues up 7.9%, falling short of estimates by 0.8%. Gorman-Rupp traded up 6.9% following the results while Graco was down 15.3%.
Read our full analysis of Gorman-Rupp’s results here and Graco’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. SPX Technologies is down 3% during the same time and is heading into earnings with an average analyst price target of $250.69 (compared to the current share price of $165.02).
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