Earnings To Watch: UL Solutions (ULS) Reports Q1 Results Tomorrow

Safety certification company UL Solutions (NYSE:ULS) will be announcing earnings results this Tuesday before market hours. Here’s what you need to know.

UL Solutions beat analysts’ revenue expectations last quarter, reporting revenues of $789 million, up 6.8% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.

Is UL Solutions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting UL Solutions’s revenue to grow 6.2% year on year, improving from the 5.2% increase it recorded in the same quarter last year.UL Solutions Total Revenue

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. UL Solutions has a history of exceeding Wall Street’s expectations.

Looking at UL Solutions’s peers in the professional services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kforce posted flat year-on-year revenue, meeting analysts’ expectations, and Fair Isaac Corporation reported revenues up 38.7%, topping estimates by 9.1%. Kforce traded up 43.3% following the results while Fair Isaac Corporation was also up 2.6%.

Read our full analysis of Kforce’s results here and Fair Isaac Corporation’s results here.

There has been positive sentiment among investors in the professional services segment, with share prices up 10.1% on average over the last month. UL Solutions is up 9% during the same time and is heading into earnings with an average analyst price target of $93.57 (compared to the current share price of $91.61).

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