APi (APG) Reports Earnings Tomorrow: What To Expect

Safety and specialty services provider APi (NYSE:APG) will be reporting results tomorrow before market hours. Here’s what you need to know.

APi missed analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $1.73 billion, down 2.3% year on year. It was a slower quarter for the company, with underwhelming EBITDA guidance for the next quarter and a miss of analysts’ organic revenue estimates.

Is APi a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting APi’s revenue to grow 5.2% year on year to $1.88 billion, improving from the 2.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. APi has missed Wall Street’s revenue estimates four times over the last two years.

Looking at APi’s peers in the construction and engineering segment, only Comfort Systems has reported results so far. It missed analysts’ revenue estimates by 1.6%, delivering year-on-year sales growth of 31.5%. The stock was down 10.3% on the results.

Read our full analysis of Comfort Systems’s earnings results here.

Investors in the construction and engineering segment have had steady hands going into earnings, with share prices flat over the last month. APi is up 4.9% during the same time and is heading into earnings with an average analyst price target of $43.56 (compared to the current share price of $33.94).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.