Heating and cooling solutions company AAON (NASDAQ:AAON) will be announcing earnings results tomorrow afternoon. Here’s what to look for.

AAON beat analysts’ revenue expectations by 10.5% last quarter, reporting revenues of $313.6 million, up 10.4% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA and earnings estimates.

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

This quarter, analysts are expecting AAON’s revenue to grow 1.2% year on year to $315.8 million, slowing from the 28.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 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. AAON has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.6% on average.

Looking at AAON’s peers in the hvac and water systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 9.6%, beating analysts’ expectations by 5.9%, and Northwest Pipe reported revenues up 9.7%, topping estimates by 2.4%. Lennox traded up 4.3% following the results while Northwest Pipe’s stock price was unchanged.

Read our full analysis of Lennox’s results here and Northwest Pipe’s results here.

There has been positive sentiment among investors in the hvac and water systems segment, with share prices up 2.7% on average over the last month. AAON is up 4.1% during the same time and is heading into earnings with an average analyst price target of $107 (compared to the current share price of $113.60).

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