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September 01, 2020 10:18am
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Verra Mobility (VRRM) Reports Q3: Everything You Need To Know Ahead Of Earnings

VRRM Cover Image

Traffic solutions company Verra Mobility (NYSE:VRRM) will be reporting results tomorrow afternoon. Here’s what you need to know.

Verra Mobility met analysts’ revenue expectations last quarter, reporting revenues of $222.4 million, up 8.8% year on year. It was a slower quarter for the company, with a miss of analysts’ operating margin estimates and underwhelming earnings guidance for the full year.

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

This quarter, analysts are expecting Verra Mobility’s revenue to grow 7.9% year on year to $226.6 million, improving from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 per share.

Verra Mobility Total Revenue

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. Verra Mobility has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.2% on average.

Looking at Verra Mobility’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.

Investors in the electrical systems segment have had steady hands going into earnings, with share prices flat over the last month. Verra Mobility is down 4.4% during the same time and is heading into earnings with an average analyst price target of $30.58 (compared to the current share price of $26.39).

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