Verra Mobility (VRRM) reports earnings tomorrow: what to expect

Traffic solutions company Verra Mobility (NASDAQ:VRRM) will be reporting earnings this Friday before market hours. Here’s what to expect.

Verra Mobility beat analysts’ revenue expectations last quarter, reporting revenues of $263.6 million, up 11.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year revenue guidance missing analysts’ expectations significantly.

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 decline 8% year on year, a reversal from the 16.1% 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. 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 Q3 results, giving us a hint as to what we can expect. Vertiv delivered year-on-year revenue growth of 61.2%, beating analysts’ expectations by 14.5%, and GE Vernova reported revenues up 26.8%, topping estimates by 5.2%.

Read our full analysis of Vertiv’s results here and GE Vernova’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 electrical systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.6% on average over the last month. Verra Mobility is up 1.6% during the same time and is heading into earnings with an average analyst price target of $6.40 (compared to the current share price of $3.09).

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