Earnings To Watch: Mayville Engineering (MEC) Reports Q4 Results Tomorrow

Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE:MEC) will be reporting results tomorrow after market close. Here’s what to expect.

Mayville Engineering beat analysts’ revenue expectations last quarter, reporting revenues of $144.3 million, up 6.6% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

Is Mayville Engineering a buy or sell going into earnings?

This quarter, the market is expecting Mayville Engineering’s revenue to grow 10.6% year on year, a reversal from the 18.4% decrease 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 to stay the course heading into earnings. Mayville Engineering has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Mayville Engineering’s peers in the engineered components and systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Arrow Electronics delivered year-on-year revenue growth of 20.1%, beating analysts’ expectations by 6.6%, and Graham Corporation reported revenues up 20.5%, topping estimates by 8.3%. Arrow Electronics traded up 12.4% following the results while Graham Corporation was also up 15.3%.

There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 4.7% on average over the last month. Mayville Engineering is up 8% during the same time and is heading into earnings with an average analyst price target of $24.60 (compared to the current share price of $21.43).

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