Railway infrastructure company L.B. Foster (NASDAQ:FSTR) will be reporting earnings tomorrow morning. Here’s what investors should know.
L.B. Foster beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $140.8 million, down 4.9% year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA and earnings estimates.
Is L.B. Foster a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting L.B. Foster’s revenue to decline 2.1% year on year to $142.3 million, a reversal from the 11.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. L.B. Foster has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.1% on average.
Looking at L.B. Foster’s peers in the general industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Luxfer delivered year-on-year revenue growth of 2.1%, beating analysts’ expectations by 15.9%, and Kadant reported revenues up 11.2%, topping estimates by 2%. Luxfer traded up 14.4% following the results while Kadant was also up 4.6%.
Read our full analysis of Luxfer’s results here and Kadant’s results here.
There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 2.7% on average over the last month. L.B. Foster is down 1.3% during the same time and is heading into earnings with an average analyst price target of $21 (compared to the current share price of $19.62).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
