Broadwind, Inc. BWEN is poised to unveil its second-quarter 2024 financial results on Aug 13, post market closure.
Over the past four quarters, Broadwind has consistently surpassed earnings estimates, averaging an impressive 95.5% earnings surprise. In the last quarter, it exceeded expectations with earnings of 7 cents per share, a substantial beat compared to the Zacks Consensus Estimate of a 7-cent loss.
Let’s delve into what investors can anticipate from Broadwind this earnings season.
Factors to Impact Results
Expectations are high for the Industrial Solutions segment, driven by increased gas turbine projects, augmented shipments of new and aftermarket gas turbine content, and global electricity demand growth.
In the second quarter, Broadwind’s performance is expected to reflect a surge in orders, fueled by robust natural gas turbine market activity. Expansion of its portfolio in industrial fabrications with new products and heightened interest from the defense industry are likely to boost revenues.
The company’s strategic cost alignment efforts to match the demand environment are anticipated to support margin performance.
However, a decline in demand for wind towers might have negatively impacted the Heavy Fabrications segment. Similarly, reduced shipments to industrial, mining, and O&G customers may have affected the Gearing segment.
Given its substantial international operations, Broadwind’s profitability may have been impacted by foreign currency headwinds.
The consensus estimate projects revenues of $37 million, signifying a 26.9% decrease from the same quarter of the previous year. Earnings are estimated to break even, reflecting a decline from 7 cents per share in the year-ago quarter.
Broadwind Energy, Inc. Price and EPS Surprise
Broadwind Energy, Inc. price-eps-surprise | Broadwind Energy, Inc. Quote
Earnings Speculation
Based on our analysis, Broadwind’s chances of an earnings beat seem uncertain this time. This absence of positive indicators includes a 0.00% Earnings ESP, as both the Most Accurate Estimate and Zacks Consensus Estimate are at breakeven.
Furthermore, Broadwind currently holds a Zacks Rank of 3.
Performance Comparison in Industrial Sector
Pentair plc PNR recently reported second-quarter adjusted earnings per share that surpassed estimates, with a notable 18% improvement year over year.
On the other hand, Crown Holdings, Inc. CCK reported solid second-quarter adjusted earnings, reflecting a significant 8% growth from the previous year.
Recommendation for Investors
Among the players in the broader Industrial Products sector, Deere & Company DE stands out as a potential candidate for an earnings beat in the upcoming report. With an Earnings ESP of +0.18% and a Zacks Rank of 3, Deere has continuously outperformed earnings estimates in the past four quarters, with an average surprise of 16%.
