Stock Story -
Welding and cutting equipment manufacturer ESAB (NYSE:ESAB) will be announcing earnings results tomorrow before the bell. Here's what to look for.
ESAB beat analysts' revenue expectations by 5.5% last quarter, reporting revenues of $689.7 million, flat year on year. It was a strong quarter for the company, with a solid beat of analysts' earnings estimates and in-line EBITDA guidance for the full year.
Is ESAB a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting ESAB's revenue to decline 4.7% year on year to $686.6 million, a reversal from the 9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.27 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. ESAB has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 7.7% on average.
Looking at ESAB's peers in the professional tools and equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Stanley Black & Decker's revenues decreased 3.2% year on year, meeting analysts' expectations, and Fortive reported revenues up 1.7%, in line with consensus estimates. Stanley Black & Decker traded up 9.5% following the results while Fortive was down 8.6%.
Read the full analysis of Stanley Black & Decker's and Fortive's results on StockStory.
There has been positive sentiment among investors in the professional tools and equipment segment, with share prices up 10% on average over the last month. ESAB is up 9% during the same time and is heading into earnings with an average analyst price target of $114.8 (compared to the current share price of $101.6).
![ESAB Earnings: What To Look For From ESAB](https://d68-invdn-com.investing.com/content/picca754ca2bdffffcdc350a6669463f358.jpeg)