Snow and ice equipment company Douglas Dynamics (NYSE: PLOW) will be reporting results this Monday before market hours. Here’s what to look for.
Douglas Dynamics beat analysts’ revenue expectations last quarter, reporting revenues of $137.8 million, up 19.8% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Douglas Dynamics 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 Douglas Dynamics’s revenue to grow 12.9% year on year, a reversal from the 2.8% 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. Douglas Dynamics has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Douglas Dynamics’s peers in the heavy transportation equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Wabash’s revenues decreased 9.1% year on year, beating analysts’ expectations by 3.6%, and Oshkosh reported revenues up 6.7%, topping estimates by 3.3%. Wabash traded down 6.8% following the results while Oshkosh was also down 7.8%.
Read our full analysis of Wabash’s results here and Oshkosh’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the heavy transportation equipment 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. Douglas Dynamics is down 5.9% during the same time and is heading into earnings with an average analyst price target of $55.25 (compared to the current share price of $44.13).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
