Welding and cutting equipment manufacturer ESAB (NYSE:ESAB) will be announcing earnings results tomorrow morning. Here’s what to look for.

ESAB missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $670.8 million, down 2.7% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates.

Is ESAB a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting ESAB’s revenue to decline 3.8% year on year to $663.7 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.21 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 missed Wall Street’s revenue estimates twice over the last two years.

Looking at ESAB’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Hillman delivered year-on-year revenue growth of 2.6%, missing analysts’ expectations by 0.5%, and Snap-on reported a revenue decline of 3%, falling short of estimates by 4.1%. Snap-on traded down 11.9% following the results.

Read our full analysis of Hillman’s results here and Snap-on’s results here.

Investors in the industrial machinery segment have had fairly steady hands going into earnings, with share prices down 1.6% on average over the last month. ESAB is down 2% during the same time and is heading into earnings with an average analyst price target of $132.55 (compared to the current share price of $118.50).

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