In This Article:
Gorman-Rupp (NYSE:GRC) manufactures and sells pumps globally. will be reporting results tomorrow before the bell. Here’s what investors should know.
Gorman-Rupp missed analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $168.2 million, flat year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Is Gorman-Rupp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Gorman-Rupp’s revenue to grow 1.4% year on year to $162.8 million, slowing from the 10% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 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. Gorman-Rupp has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Gorman-Rupp’s peers in the gas and liquid handling segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Standex delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 0.5%, and IDEX reported revenues up 9.4%, falling short of estimates by 0.6%. Standex traded down 2.2% following the results while IDEX was also down 9.5%.
Read our full analysis of Standex’s results here and IDEX’s results here.
There has been positive sentiment among investors in the gas and liquid handling segment, with share prices up 2.8% on average over the last month. Gorman-Rupp is up 2.1% during the same time and is heading into earnings with an average analyst price target of $53 (compared to the current share price of $37.72).
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.