Heating and cooling solutions company AAON (NASDAQ:AAON) will be announcing earnings results this Thursday morning. Here’s what you need to know.
AAON beat analysts’ revenue expectations last quarter, reporting revenues of $424.2 million, up 42.5% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is AAON 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 AAON’s revenue to grow 19.1% year on year, slowing from the 22.9% 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. AAON has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at AAON’s peers in the hvac and water systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Northwest Pipe delivered year-on-year revenue growth of 19.1%, beating analysts’ expectations by 10.5%, and Zurn Elkay reported revenues up 11.4%, topping estimates by 3.2%. Northwest Pipe traded up 14.3% following the results while Zurn Elkay was also up 9.5%.
Read our full analysis of Northwest Pipe’s results here and Zurn Elkay’s results here.
There has been positive sentiment among investors in the hvac and water systems segment, with share prices up 9.9% on average over the last month. AAON is up 15.5% during the same time and is heading into earnings with an average analyst price target of $122.75 (compared to the current share price of $93.84).
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