VSE Corporation (VSEC) To Report Earnings Tomorrow: Here Is What To Expect

Aviation and fleet aftermarket services provider VSE Corporation (NASDAQ:VSEC) will be reporting results this Wednesday after market hours. Here’s what to look for.

VSE Corporation beat analysts’ revenue expectations last quarter, reporting revenues of $282.9 million, up 3.4% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

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

This quarter, the market is expecting VSE Corporation’s revenue to decline 3.3% year on year, a reversal from the 27.1% increase 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. VSE Corporation has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at VSE Corporation’s peers in the maintenance and repair distributors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. W.W. Grainger delivered year-on-year revenue growth of 4.5%, beating analysts’ expectations by 0.7%, and Transcat reported revenues up 25.6%, topping estimates by 4.1%. W.W. Grainger traded up 9% following the results while Transcat was also up 11.5%.

Read our full analysis of W.W. Grainger’s results here and Transcat’s results here.

There has been positive sentiment among investors in the maintenance and repair distributors segment, with share prices up 4.3% on average over the last month. VSE Corporation is up 8.8% during the same time and is heading into earnings with an average analyst price target of $234.52 (compared to the current share price of $222.39).

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