Heating and cooling solutions company AAON (NASDAQ:AAON) will be announcing earnings results tomorrow morning. Here’s what investors should know.
AAON beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $327.3 million, up 4.9% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
Is AAON a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AAON’s revenue to grow 4.5% year on year to $320.5 million, slowing from the 20.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.53 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. AAON has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4% on average.
Looking at AAON’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.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the HVAC and water systems stocks have shown solid performance, the group has generally underperformed, with share prices down 5.6% on average over the last month. AAON is down 5.8% during the same time and is heading into earnings with an average analyst price target of $129.20 (compared to the current share price of $105.30).
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