Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE: MEC) will be reporting earnings this Tuesday afternoon. Here’s what to look for.
Mayville Engineering beat analysts’ revenue expectations last quarter, reporting revenues of $163 million, up 23.2% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Mayville Engineering 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 Mayville Engineering’s revenue to grow 14.4% year on year, improving from the 6.6% 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. Mayville Engineering has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Mayville Engineering’s peers in the engineered components and systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. NN delivered year-on-year revenue growth of 26.2%, beating analysts’ expectations by 11%, and RBC Bearings reported revenues up 15.2%, topping estimates by 2%. NN traded up 2.9% following the results.
Read our full analysis of NN’s results here and RBC Bearings’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the engineered components and systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Mayville Engineering is down 8.4% during the same time and is heading into earnings with an average analyst price target of $37 (compared to the current share price of $15.02).
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