Aviation and fleet aftermarket services provider VSE Corporation (NASDAQ: VSEC) will be reporting results this Wednesday after the bell. Here’s what you need to know.
VSE Corporation beat analysts’ revenue expectations last quarter, reporting revenues of $324.6 million, up 26.8% year on year. It was an incredible quarter for the company, with a 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 for active Edge members.
This quarter, the market is expecting VSE Corporation’s revenue to grow 57.5% year on year, improving from the 41.1% 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. VSE Corporation has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at VSE Corporation’s peers in the maintenance and repair distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. WESCO delivered year-on-year revenue growth of 13%, beating analysts’ expectations by 3.7%, and MSC Industrial reported revenues up 7.8%, topping estimates by 1.3%. WESCO traded up 11% following the results while MSC Industrial was also up 3.2%.
Read our full analysis of WESCO’s results here and MSC Industrial’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the maintenance and repair distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. VSE Corporation is down 13.1% during the same time and is heading into earnings with an average analyst price target of $257.56 (compared to the current share price of $206.91).
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