Graham Corporation (GHM) Q3 earnings report preview: what to look for

Industrial fluid and energy systems manufacturer Graham Corporation (NYSE: GHM) will be reporting earnings this Thursday before the bell. Here’s what to expect.

Graham Corporation beat analysts’ revenue expectations last quarter, reporting revenues of $71.34 million, up 28.6% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Is Graham 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 Graham Corporation’s revenue to grow 7.6% year on year, slowing from the 23.3% 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. Graham Corporation has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Graham Corporation’s peers in the engineered components and systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. NN delivered year-on-year revenue growth of 26.2%, beating analysts’ expectations by 11%, and Enpro reported revenues up 22.4%, topping estimates by 5%. NN traded up 4.2% following the results.

Read our full analysis of NN’s results here and Enpro’s results here.

Investors in the engineered components and systems segment have had steady hands going into earnings, with share prices flat over the last month. Graham Corporation is down 18.2% during the same time and is heading into earnings with an average analyst price target of $125.60 (compared to the current share price of $74.00).

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