Water handling and recycling company Aris Water (NYSE:ARIS) will be reporting results tomorrow after market hours. Here’s what to look for.

Aris Water beat analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $101.1 million, up 4.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.

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

This quarter, analysts are expecting Aris Water’s revenue to grow 3.6% year on year to $103.4 million, slowing from the 9.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.

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. Aris Water has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 5.8% on average.

Looking at Aris Water’s peers in the environmental and facilities services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Veralto delivered year-on-year revenue growth of 4.5%, meeting analysts’ expectations, and Waste Management reported revenues up 7.9%, topping estimates by 1.7%. Veralto traded down 4.6% following the results while Waste Management was up 5.2%.

Read our full analysis of Veralto’s results here and Waste Management’s results here.

Investors in the environmental and facilities services segment have had steady hands going into earnings, with share prices flat over the last month. Aris Water is down 4.2% during the same time and is heading into earnings with an average analyst price target of $19.41 (compared to the current share price of $16.50).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.