NASDAQ$AAON

Aaon Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

AAON reported mixed results with a decrease in net sales but an increase in gross profit margin and earnings per share.

AAON's first quarter results were mixed, with net sales decreasing by 1.4% to $262.1 million. However, the company saw an increase in gross profit margin to 35.2% and earnings per diluted share to $0.46. Bookings remain strong across all business segments with quarter-over-quarter increases in backlog.

  • Net sales decreased by 1.4% year-over-year, driven by declines in AAON Coil Products and BASX segments.
  • Gross profit margin expanded to 35.2%, primarily due to favorable pricing relative to moderating cost inflation.
  • Earnings per diluted share increased slightly to $0.46, benefiting from an excess tax benefit.
  • Backlog increased for a second straight quarter, with strong bookings in the data center market.

Headline financials

Total Revenue

$262M

Previous: $266M-1.4%
EPS

$0.46

Previous: $0.45+2.2%
Total Backlog

$558M

Previous: $600M-6.9%
Dividends Per Share

$0.08

No prior period
Capital Expenditures

$34.7M

No prior period
Free Cash Flow

$4.33M

Previous: $36.8M-88.2%
Net Income

$39M

Previous: $36.8M+6.0%
Operating Income

$47M

Previous: $44.2M+6.3%
Gross Profit

$92.2M

Previous: $77.2M+19.6%
Cash & Equivalents

$8.39M

Previous: $2.52M+233.4%
Total Assets

$953M

Previous: $868M+9.8%
Stock-Based Comp

$3.96M

Previous: $3.52M+12.4%

Revenue & EPS history

Aaon · Revenue · Quarterly

$262M

Q1 2024-1.4%vs Q1 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

AAON anticipates improved results throughout 2024, driven by strong levels of activity indicated by independent sales reps and an acceleration of backlog conversion. The company remains positive in its long-term outlook, especially with mega projects in the data center market, and continues to invest in production capacity, people, and technology to manage growth effectively.

Tailwinds

  • Strong levels of activity indicated by independent sales reps.
  • Order flow expected to improve as the deadline for ordering equipment with R410A refrigerant approaches.
  • Anticipated acceleration of backlog conversion at AAON Coil Products and BASX segments.
  • Large pipeline of projects, especially with mega projects in the data center market.
  • Continued investments in production capacity, people, and technology.

Headwinds

  • Slow start to the year.
  • Upcoming refrigerant regulations may cause some volatility on a month-to-month basis.
  • Timing of production resulted in a softer than expected first quarter for AAON Coil Products and BASX segments.
  • Lower volumes impacted the full reflection of pricing and cost management in the first quarter results.
  • Potential challenges in efficiently adapting to robust growth rates over the long-term.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.9%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.4%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+31.4%

Q1 2026

Best reaction

-22.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+31.4%+35.9%+34.9%
Q4 2025+3.5%-12.7%-17.3%
Q3 2025+5.4%+2.0%-12.5%
Q1 2025+5.7%+6.8%+5.5%
Q4 2024-22.9%-26.2%-23.5%
Q3 2024+15.0%+14.5%+14.1%
Q2 2024-3.1%-2.6%+7.9%
Q1 2024-17.0%-16.9%-20.6%
Q4 2023-2.1%-3.9%+2.7%
Q3 2023+1.6%+1.5%+10.5%
Q2 2023-8.0%-9.5%-7.6%
Q1 2023+5.9%-0.9%-6.1%
Q4 2022+11.7%+15.3%+16.3%
Q3 2022+13.6%+18.6%+18.8%
Q2 2022-2.9%+0.1%-6.4%
Q1 2022+4.1%+6.2%+10.7%
Q4 2021-2.3%-7.2%-4.5%
Q3 2021+1.7%+5.5%+9.5%
Q2 2021+8.3%+13.0%+8.3%
Q1 2021+4.0%+2.4%+0.9%
Q4 2020-1.0%-3.8%-7.1%
Q3 2020+6.5%+9.9%+4.7%
Q2 2020-2.3%+0.1%-5.9%
Q1 2020+4.3%+1.3%+24.4%
Q4 2019+3.6%+5.8%-12.9%
Q3 2019-1.1%+0.1%-0.6%
Q2 2019-8.3%-11.5%-5.6%
Q1 2019+3.9%-5.0%-9.0%
Q4 2018-0.7%+2.0%+11.1%
Q3 2018+13.1%+21.4%+10.0%
Q2 2018+2.1%+3.3%+7.7%
Q1 2018-12.3%-9.8%-8.1%
Q4 2017+2.8%-1.0%+9.1%
Q3 2017+0.2%+0.6%+5.7%
Q2 2017+4.3%+3.4%-3.0%
Q1 2017-2.5%-0.5%+0.3%
Q4 2016+0.3%-2.2%+5.4%
Q3 2016-3.5%-0.7%+13.8%
Q2 2016+1.3%+3.5%+10.2%
Q1 2016+9.2%
Q4 2015+11.2%
Q3 2015+11.0%
Q2 2015+3.3%
Q1 2015-5.7%
Q4 2014-2.1%
Q3 2014+2.7%
Q2 2014-1.6%
Q1 2014+6.4%
Q4 2013-5.5%
Q3 2013-8.8%
Q2 2013+5.9%
Q1 2013+5.3%
Q4 2012+2.5%
Q3 2012-4.4%
Q2 2012+4.1%
Q1 2012+0.4%
Q1 2011+0.4%
Q4 2009+5.5%
Q4 2011+5.5%
Q3 2010-2.1%
Q3 2011-2.1%
Q2 2010-14.8%
Q2 2011-14.8%
Q4 2010-14.8%
Q1 2010-4.7%

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