Traffic solutions company Verra Mobility (NASDAQ: VRRM) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
Verra Mobility beat analysts’ revenue expectations last quarter, reporting revenues of $257.9 million, up 16.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Is Verra Mobility 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 Verra Mobility’s revenue to be flat year on year, slowing from the 6.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Verra Mobility rarely misses Wall Street’s revenue estimates.
Looking at Verra Mobility’s peers in the electrical systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. LSI delivered year-on-year revenue growth of 13.6%, beating analysts’ expectations by 9%, and Garrett Motion reported revenues up 12.2%, topping estimates by 9.3%. LSI traded up 6.7% following the results while Garrett Motion was also up 26.3%.
Read our full analysis of LSI’s results here and Garrett Motion’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 7.6% on average over the last month. Verra Mobility’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $24.86 (compared to the current share price of $14.74).
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