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Graham Corporation (GHM) Reports Q3: Everything You Need To Know Ahead Of Earnings

GHM Cover Image

Industrial fluid and energy systems manufacturer Graham Corporation (NYSE: GHM) will be reporting earnings this Friday before market hours. Here’s what you need to know.

Graham Corporation missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $55.49 million, up 11.1% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ revenue 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, analysts are expecting Graham Corporation’s revenue to grow 7.4% year on year to $57.55 million, slowing from the 18.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.

Graham Corporation Total Revenue

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. Graham Corporation has only missed Wall Street’s revenue estimates once since going public and has exceeded top-line expectations by -1.9% on average.

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. Timken delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 3.6%, and Mayville Engineering reported revenues up 6.6%, topping estimates by 2.8%. Timken traded up 1.9% following the results while Mayville Engineering was down 10.6%.

Read our full analysis of Timken’s results here and Mayville Engineering’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 up 15.1% during the same time and is heading into earnings with an average analyst price target of $64.50 (compared to the current share price of $63.95).

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