Speciality material and gas containment company Luxfer (NYSE:LXFR) will be reporting results this Tuesday afternoon. Here’s what investors should know.
Luxfer missed analysts’ revenue expectations last quarter, reporting revenues of $83.9 million, down 13.5% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Luxfer 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 Luxfer’s revenue to decline 13.2% year on year, a reversal from the 4.3% increase 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. Luxfer has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Luxfer’s peers in the general industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 24.5%, beating analysts’ expectations by 6%, and 3M reported revenues up 5.6%, topping estimates by 1.5%. GE Aerospace traded down 3.2% following the results while 3M was up 7.3%.
Read our full analysis of GE Aerospace’s results here and 3M’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the general industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Luxfer is down 6.5% during the same time and is heading into earnings with an average analyst price target of $20.50 (compared to the current share price of $17.05).
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