Traffic solutions company Verra Mobility (NYSE: VRRM) will be reporting earnings this Wednesday after the bell. Here’s what investors should know.
Verra Mobility beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $236 million, up 6.1% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ revenue estimates but a miss of analysts’ adjusted operating income estimates.
Is Verra Mobility a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Verra Mobility’s revenue to grow 5.7% year on year to $238.5 million, slowing from the 7.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.34 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. Verra Mobility has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.6% on average.
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 29%, beating analysts’ expectations by 3.4%, and Allegion reported revenues up 10.7%, topping estimates by 2.5%. Vertiv traded up 4.6% following the results while Allegion was down 4.7%.
Read our full analysis of Vertiv’s results here and Allegion’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 3.8% on average over the last month. Verra Mobility is down 2.6% during the same time and is heading into earnings with an average analyst price target of $29.17 (compared to the current share price of $24.12).
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