NN Q3 results beat estimates on higher selling prices; raises full-year 2026 guidance
Overview
US precision components maker's Q3 sales rose 26% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company raised full-year 2026 guidance
Outlook
NN Inc. raises 2026 net sales guidance to $480 mln-$500 mln
Company expects 2026 adjusted EBITDA of $64 mln-$68 mln
NN Inc. forecasts 2026 new business wins of $110 mln-$130 mln
Result Drivers
HIGHER SELLING PRICES AND VOLUMES - Co said Q3 sales growth was driven by higher selling prices, increased volumes, and favorable FX effects
HIGHER LABOR AND PROFESSIONAL FEES - Co said increased loss from operations was mainly due to higher labor costs and professional fees tied to new business and strategic initiatives
BRAZIL TAX RULING AND JV INCOME - Co said net loss improvement was driven by a favorable tax ruling in Brazil and higher income from joint venture in China
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $131.10 mln | $118.11 mln (3 Analysts) |
Q3 Adjusted EPS | Beat | $0.07 | $0.01 (3 Analysts) |
Q3 Loss Per Share | $0.13 | ||
Q3 Adjusted Net Income | Beat | $5.30 mln | $1.47 mln (3 Analysts) |
Q3 Net Loss | $4.60 mln | ||
Q3 Adjusted EBITDA | Beat | $18.50 mln | $14.90 mln (3 Analysts) |
Q3 Adjusted Income from Operations | $8.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for NN Inc is $7.00, about 99.4% above its October 27 closing price of $3.51
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago
Reuters Recommended Reads
Oct 27 - Lincoln Electric Q3 sales beat on higher volumes
Oct 28 - IDEX Q3 sales beat on increased volumes
Oct 27 - Engineered components maker Crane's Q3 sales beat, partly on acquisitions
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)