NASDAQ$AAON

Aaon Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

AAON's financial performance was impacted by raw material inflation and labor shortages, despite a significant increase in backlog and new bookings.

AAON reported a 2.8% increase in net sales to $138.6 million for the third quarter of 2021. However, gross profit declined by 11.8% due to rising material costs and labor shortages. The company's backlog increased by 114% year-over-year, reaching $181.8 million.

  • Net sales increased by 2.8% to $138.6 million compared to the same period in 2020.
  • Gross profit decreased by 11.8% due to raw material inflation and labor shortages.
  • Backlog increased by 114% year-over-year to $181.8 million.
  • New bookings increased by approximately 60% compared to the same period last year.

Headline financials

Total Revenue

$139M

Previous: $135M+2.8%
EPS (adj)

$0.19

Previous: $0.25-24.0%
Total Backlog

$182M

Previous: $84.9M+114.2%
Free Cash Flow

$15.6M

Previous: $20.5M-23.8%
Net Income

$15.6M

Previous: $20.5M-23.8%
Operating Income

$20.1M

Previous: $26.1M-22.9%
Gross Profit

$36M

Previous: $40.8M-11.8%
Cash & Equivalents

$102M

Previous: $70.6M+44.2%
Total Assets

$516M

Previous: $440M+17.4%
Stock-Based Comp

$2.99M

Previous: $2.85M+4.9%

Revenue & EPS history

Aaon · Revenue · Quarterly

$139M

Q3 2021+2.8%vs Q3 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

AAON anticipates that the price/cost issue is largely a timing factor and will begin to dissipate as the year closes. The company expects to make progress on labor shortage challenges in the fourth quarter, but this issue could linger into 2022. AAON believes it is well-positioned to benefit from an increased focus on decarbonization, electrification, energy efficiency and indoor air quality.

Tailwinds

  • Price/cost issue is expected to dissipate as the year closes.
  • Additional price increases have been implemented, bringing the total announced increases for the year to 18%.
  • Progress is expected on labor shortage challenges in the fourth quarter.
  • AAON is well-positioned to benefit from an increased focus on decarbonization.
  • AAON is well-positioned to benefit from an increased focus on electrification.

Headwinds

  • Labor shortage challenges could linger into 2022.
  • Raw material inflation.
  • Labor shortages restricted the company from ramping up production as quickly as desired.
  • Increased backlog created by the order surge delayed the impact of the price increase hitting the floor so that it had minimal impact on the quarter.
  • The company saw the highest priced materials to date coming out of inventory and flowing through production.

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 Q3 2021

Historical avgQ3 2021

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro