Earnings Outlook For VSE

VSE VSEC will release its quarterly earnings report on Tuesday, 2024-11-05. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate VSE to report an earnings per share (EPS) of $0.69.

Anticipation surrounds VSE's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

In the previous earnings release, the company missed EPS by $0.09, leading to a 5.39% drop in the share price the following trading session.

Here's a look at VSE's past performance and the resulting price change:

Market Performance of VSE's Stock

Shares of VSE were trading at $103.33 as of November 01. Over the last 52-week period, shares are up 79.72%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on VSE

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on VSE.

Analysts have provided VSE with 4 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $111.25, suggesting a potential 7.66% upside.

Understanding Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Driven Brands Hldgs, Vestis and Openlane, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus among analysts is an Buy trajectory for Driven Brands Hldgs, with an average 1-year price target of $20.25, indicating a potential 80.4% downside.
• Vestis received a Neutral consensus from analysts, with an average 1-year price target of $13.1, implying a potential 87.32% downside.
• The consensus outlook from analysts is an Outperform trajectory for Openlane, with an average 1-year price target of $25.0, indicating a potential 75.81% downside.

Insights: Peer Analysis

Within the peer analysis summary, vital metrics for Driven Brands Hldgs, Vestis and Openlane are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

VSE has the highest revenue growth among its peers. It also has the highest gross profit margin. However, it has the lowest return on equity. Overall, VSE ranks at the top in revenue growth and gross profit, but at the bottom in return on equity compared to its peers.

Discovering VSE: A Closer Look

VSE Corp is a diversified aftermarket products and services company providing repair services, parts distribution, logistics, supply chain management and consulting services for land, sea and air transportation assets to commercial and government markets. Its operations include supply chain management solutions, parts supply and distribution, and maintenance, repair and overhaul (MRO) services for vehicle fleet, aviation, maritime and other customers. Its reportable segments are; Aviation and Fleet. Majority of the revenue for the company is generated from the Aviation segment which is a provider of aftermarket parts distribution and MRO services for components and engine accessories supporting commercial, business and general aviation operators.

Key Indicators: VSE's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: VSE's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 29.6%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: VSE's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -1.04%, the company may face hurdles in effective cost management.

Return on Equity (ROE): VSE's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -0.4%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): VSE's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.2%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a below-average debt-to-equity ratio of 0.64, VSE adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for VSE visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.