NN (NNBR) Q4 Earnings Report Preview: What To Look For

Industrial components supplier NN (NASDAQ:NNBR) will be reporting earnings tomorrow after market hours. Here’s what you need to know.

NN missed analysts’ revenue expectations last quarter, reporting revenues of $103.9 million, down 8.5% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.

This quarter, the market is expecting NN’s revenue to decline 1.1% year on year, improving from the 5.3% 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 to stay the course heading into earnings. NN has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at NN’s peers in the engineered components and systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Arrow Electronics delivered year-on-year revenue growth of 20.1%, beating analysts’ expectations by 6.6%, and Graham Corporation reported revenues up 20.5%, topping estimates by 8.3%. Arrow Electronics traded up 12.4% following the results while Graham Corporation was also up 15.3%.

There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 3.7% on average over the last month. NN is down 5.1% during the same time and is heading into earnings with an average analyst price target of $5.75 (compared to the current share price of $1.44).

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