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Investing.com - Benchmark maintained its Buy rating on VSE Corporation (NASDAQ:VSEC) stock with a price target of $140.00 ahead of the company’s second-quarter earnings report, due in 15 days. The stock, currently trading at $129.58, has shown impressive momentum with a 43.8% return over the past year. According to InvestingPro analysis, VSE appears to be trading above its Fair Value.
The research firm expects VSE to report second-quarter 2025 adjusted EBITDA of $40 million, slightly above the Street consensus of $39 million.
Benchmark notes that VSE remains in consolidation mode during the second quarter, integrating its Turbine Weld Industries, TCI, and Kellstrom acquisitions before these businesses are expected to make larger contributions later this year.
The firm anticipates potential updates on VSE’s planned expansion into the hydraulic market, following CEO Cuomo’s comments during first-quarter 2025 earnings about a new five-year deal with Eaton (NYSE:ETN), which Benchmark views as an "opening salvo" into a new vertical.
While maintaining its adjusted EBITDA projections, Benchmark has revised its adjusted EPS assumptions due to its treatment of adjustments.
In other recent news, VSE Corporation reported a robust first-quarter 2025 performance with a notable 58% increase in revenue, reaching $256 million, driven by strategic initiatives and acquisitions. The company’s earnings per share (EPS) for the quarter exceeded expectations at $0.78, surpassing the forecast of $0.70. Analysts at Jefferies, RBC Capital, and Truist Securities have all adjusted their price targets for VSE, reflecting confidence in the company’s strategic direction. Jefferies raised its target to $157 while maintaining a Buy rating, despite lowering its second-quarter EPS estimate due to external factors like the Pratt & Whitney strike. RBC Capital increased its target to $150, highlighting VSE’s strong execution and the positive outlook in the aerospace and defense market. Truist Securities also raised its target to $140, acknowledging the company’s strong first-quarter performance and ongoing integration efforts. VSE’s recent acquisition of Turbine Weld is expected to further bolster its financial guidance for the year, enhancing its position in the aviation aftermarket.
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