Earnings To Watch: Albany (AIN) Reports Q2 Results Tomorrow

Industrial equipment and engineered products manufacturer Albany will be reporting results this Tuesday before market open. Here’s what to look for.

Albany beat analysts’ revenue expectations last quarter, reporting revenues of $311.3 million, up 7.8% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Is Albany 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 Albany’s revenue to grow 8.9% year on year, a reversal from the 6.2% 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 will stay the course heading into earnings. Albany has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Albany’s peers in the general industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Columbus McKinnon delivered year-on-year revenue growth of 125%, beating analysts’ expectations by 5.9%, and GE Aerospace reported revenues up 24.5%, topping estimates by 6%. Columbus McKinnon traded up 31.1% following the results while GE Aerospace was down 3.2%.

Read our full analysis of Columbus McKinnon’s results here and GE Aerospace’s results here.

In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the general industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Albany’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $58.67 (compared to the current share price of $74.51).

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