NASDAQ$ARRY

Array Technologies Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong financial results despite a challenging supply chain environment.

Array Technologies reported a 76% increase in revenue to $202.8 million compared to the prior-year period. Net loss was $17 thousand, and adjusted EBITDA grew 23% to $16.2 million compared to the same period last year. The company reintroduces full-year guidance after negotiating with customers and suppliers to reduce exposure to future increases in commodity prices and shipping costs.

  • Revenues increased 76% year-over-year to $202.8 million.
  • Adjusted EBITDA increased 23% to $16.2 million compared to the same period last year.
  • Gross margin decreased from 19.3% to 13.2% due to significantly higher input and freight costs.
  • Total executed contracts and awarded orders at June 30, 2021 was $882 million, representing a record level for the company.

Headline financials

Total Revenue

$203M

Previous: $115M+76.5%
EPS (adj)

$0.07

Previous: $0.12-42.5%
Orderbook

$882M

No prior period
Capital Expenditures

-$1.2M

Previous: $97K-1337.1%
Free Cash Flow

-$1.22M

Previous: -$47.4M+97.4%
Net Income

-$17K

Previous: $2.39M-100.7%
Operating Income

$5.71M

Previous: $1.21M+371.2%
Gross Profit

$26.8M

Previous: $22.2M+20.7%
Cash & Equivalents

$17.7M

Previous: $38M-53.4%
Total Assets

$622M

No prior period

Revenue & EPS history

Array Technologies · Revenue · Quarterly

$203M

Q2 2021+76.5%vs Q2 2020
Beat estimate in 11 of 13 quarters(85%)
ActualEstimate

Forward guidance

For the full year 2021, Array Technologies expects revenues to be in the range of $850 million to $940 million, adjusted EBITDA to be in the range of $55 million to $75 million, and adjusted diluted net income per share to be in the range of $0.15 to $0.25.

Tailwinds

  • Margins on new orders are in line with past performance and in some instances even higher.
  • Company is already seeing margins on new orders that are in line with past performance and in some instances even higher.
  • Revenues to be in the range of $850 million to $940 million
  • Adjusted EBITDA to be in the range of $55 million to $75 million
  • Adjusted diluted net income per share to be in the range of $0.15 to $0.25

Headwinds

  • Results for the balance of the year will continue to be impacted by the roll-off of backlog from the beginning of this year which is predominantly contracts that were priced prior to the current inflationary environment.
  • The ‘hangover’ effect of older backlog should dissipate by the first quarter of 2022
  • Gross margin decreased from 19.3% to 13.2%, driven by significantly higher input and freight costs
  • Net loss was $17 thousand compared to net income of $2.4 million during the same period in the prior year
  • Company is still impacted by the roll-off of backlog from the beginning of this year

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 Q2 2021

Historical avgQ2 2021

-0.3%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+3.3%

Avg return

30 days after

63%

15 / 24 earnings

Positive

+29.5%

Q3 2021

Best reaction

-45.9%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%+6.5%-1.2%
Q4 2025-33.9%-31.8%-33.4%
Q3 2025+2.0%+0.5%-5.4%
Q1 2025+3.9%+20.7%+50.1%
Q3 2024+1.7%+10.9%-5.4%
Q2 2024-18.0%-19.1%-26.3%
Q1 2024+2.0%+0.9%+7.4%
Q4 2023+5.2%+5.5%+11.3%
Q3 2023-16.6%-22.2%-11.8%
Q2 2023+25.0%+32.9%+33.9%
Q1 2023-0.1%+17.7%+22.2%
Q4 2022+13.9%+7.2%+21.7%
Q3 2022+20.9%+29.0%+32.0%
Q2 2022+26.2%+24.7%+14.1%
Q1 2022-12.2%-3.1%+84.4%
Q4 2021-7.5%-22.1%-23.2%
Q3 2021+29.5%+30.0%-15.8%
Q2 2021+14.0%+13.0%+16.1%
Q1 2020-45.9%-42.8%-34.4%
Q1 2021-45.9%-42.8%-34.4%
Q2 2020+0.1%+0.9%-14.9%
Q4 2020+0.7%+3.8%-9.2%
Q4 2019+4.1%+17.2%+5.3%
Q3 2020+24.7%+10.5%-5.1%
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015

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