Snow and ice equipment company Douglas Dynamics (NYSE:PLOW) will be reporting results this Monday after market close. Here’s what to look for.
Douglas Dynamics beat analysts’ revenue expectations by 6.7% last quarter, reporting revenues of $115.1 million, up 20.3% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Douglas Dynamics a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Douglas Dynamics’s revenue to decline 8.6% year on year to $182.8 million, a further deceleration from the 3.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.
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. Douglas Dynamics has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Douglas Dynamics’s peers in the heavy transportation equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Greenbrier delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 7.3%, and PACCAR reported a revenue decline of 15.7%, topping estimates by 2.6%. Greenbrier traded up 21.1% following the results while PACCAR was also up 8.9%.
Read our full analysis of Greenbrier’s results here and PACCAR’s results here.
Investors in the heavy transportation equipment segment have had steady hands going into earnings, with share prices flat over the last month. Douglas Dynamics is down 10% during the same time and is heading into earnings with an average analyst price target of $34.33 (compared to the current share price of $27.91).
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