What To Expect From VSE Corporation’s (VSEC) Q1 Earnings

StockStory
05-05
What To Expect From VSE Corporation’s (VSEC) Q1 Earnings

Aviation and fleet aftermarket services provider VSE Corporation (NASDAQ:VSEC) will be reporting results tomorrow afternoon. Here’s what investors should know.

VSE Corporation beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $299 million, up 27.1% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

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

This quarter, analysts are expecting VSE Corporation’s revenue to grow 13.6% year on year to $274.3 million, slowing from the 28.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.58 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. VSE Corporation has missed Wall Street’s revenue estimates three times over the last two years.

Looking at VSE Corporation’s peers in the maintenance and repair distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Global Industrial posted flat year-on-year revenue, beating analysts’ expectations by 4.6%, and Fastenal reported revenues up 3.4%, in line with consensus estimates. Global Industrial traded up 15.7% following the results while Fastenal was also up 7.3%.

Read our full analysis of Global Industrial’s results here and Fastenal’s results here.

There has been positive sentiment among investors in the maintenance and repair distributors segment, with share prices up 13% on average over the last month. VSE Corporation is up 18.1% during the same time and is heading into earnings with an average analyst price target of $137.77 (compared to the current share price of $127.67).

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