Industrial equipment and engineered products manufacturer Albany (NYSE:AIN) will be announcing earnings results tomorrow afternoon. Here’s what to look for.
Albany missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $298.4 million, up 6.1% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.
Is Albany a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Albany’s revenue to decline 7.4% year on year to $299.5 million, a reversal from the 20.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.66 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. Albany has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Albany’s peers in the general industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 14.3%, beating analysts’ expectations by 13.7%, and Honeywell reported revenues up 6.9%, topping estimates by 2.5%. GE Aerospace traded up 4.5% following the results while Honeywell was down 7.4%.
Read our full analysis of GE Aerospace’s results here and Honeywell’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the general industrial machinery stocks have shown solid performance, the group has generally underperformed, with share prices down 7.4% on average over the last month. Albany is down 2.1% during the same time and is heading into earnings with an average analyst price target of $86.50 (compared to the current share price of $79.67).
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