Safety certification company UL Solutions (NYSE: ULS) will be reporting earnings tomorrow morning. Here’s what to look for.
UL Solutions beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $739 million, up 8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates.
Is UL Solutions a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting UL Solutions’s revenue to grow 5.2% year on year to $704.8 million, slowing from the 6.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.
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. UL Solutions has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 1.6% on average.
Looking at UL Solutions’s peers in the professional services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. NV5 Global delivered year-on-year revenue growth of 10.1%, beating analysts’ expectations by 2.4%, and ICF International reported a revenue decline of 1.4%, in line with consensus estimates. NV5 Global traded up 1.5% following the results while ICF International was down 6.3%.
Read our full analysis of NV5 Global’s results here and ICF International’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 11.7% on average over the last month. UL Solutions is up 11.5% during the same time and is heading into earnings with an average analyst price target of $59.15 (compared to the current share price of $59.85).
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