What To Expect From Gorman-Rupp's (GRC) Q4 Earnings

Gorman-Rupp (NYSE:GRC) manufactures and sells pumps globally. will be reporting earnings this Friday morning. Here’s what to look for.

Gorman-Rupp missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $172.8 million, up 2.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.

Is Gorman-Rupp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Gorman-Rupp’s revenue to grow 2.7% year on year to $167.1 million, improving from the 1.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.43 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. Gorman-Rupp has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Gorman-Rupp’s peers in the gas and liquid handling segment, some have already reported their Q4 results, giving us a hint as to what we can expect. IDEX delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 2.2%, and Parker-Hannifin reported revenues up 9.1%, topping estimates by 2.1%. Parker-Hannifin traded up 2.1% following the results.

Read our full analysis of IDEX’s results here and Parker-Hannifin’s results here.

There has been positive sentiment among investors in the gas and liquid handling segment, with share prices up 8% on average over the last month. Gorman-Rupp is up 18.2% during the same time and is heading into earnings with an average analyst price target of $59 (compared to the current share price of $58.68).

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