Thermon Earnings: What To Look For From THR

Industrial process heating solutions provider Thermon (NYSE:THR) will be reporting earnings tomorrow before market open. Here’s what investors should know.

Thermon met analysts’ revenue expectations last quarter, reporting revenues of $115.1 million, up 7.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA and earnings estimates.

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

This quarter, analysts are expecting Thermon’s revenue to decline 6% year on year to $116.2 million, a reversal from the 23% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 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. Thermon has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 8.1% on average.

Looking at Thermon’s peers in the electrical systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. OSI Systems delivered year-on-year revenue growth of 23.2%, beating analysts’ expectations by 8%, and Vertiv reported revenues up 19%, topping estimates by 4.8%. OSI Systems traded down 5.5% following the results while Vertiv was also down 2.2%.

Read our full analysis of OSI Systems’s results here and Vertiv’s results here.

There has been positive sentiment among investors in the electrical systems segment, with share prices up 2.7% on average over the last month. Thermon is down 5% during the same time and is heading into earnings with an average analyst price target of $37.33 (compared to the current share price of $26.95).

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