Water management company Northwest Pipe (NASDAQ:NWPX) will be announcing earnings results tomorrow after the bell. Here’s what to expect.
Northwest Pipe beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $130.2 million, up 9.7% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
Is Northwest Pipe a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Northwest Pipe’s revenue to grow 9.2% year on year to $120.3 million, improving from the 3.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 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. Northwest Pipe has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Northwest Pipe’s peers in the hvac and water systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 16.5%, beating analysts’ expectations by 8.9%, and Trane Technologies reported revenues up 10.2%, topping estimates by 1.9%. Lennox traded down 8.5% following the results while Trane Technologies’s stock price was unchanged.
Read our full analysis of Lennox’s results here and Trane Technologies’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the hvac and water systems stocks have shown solid performance, the group has generally underperformed, with share prices down 7.4% on average over the last month. Northwest Pipe is down 5% during the same time and is heading into earnings with an average analyst price target of $56.33 (compared to the current share price of $46.23).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
