NASDAQ$CHX

ChampionX Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

ChampionX's Q4 2021 results were announced, featuring revenue of $822.1 million and net income of $43.4 million.

ChampionX reported Q4 2021 results with revenue of $822.1 million and net income attributable to ChampionX of $43.4 million. The company's adjusted EBITDA was $133.1 million, and free cash flow was $71.0 million. They also initiated a quarterly cash dividend of $0.075 per share.

  • Revenue reached $822.1 million.
  • Net income attributable to ChampionX was $43.4 million; adjusted net income was $54.2 million.
  • Adjusted EBITDA was $133.1 million with margin expansion of 110 basis points sequentially.
  • Free cash flow was $71.0 million, representing 9% of revenue.

Headline financials

Total Revenue

$822M

Previous: $706M+16.4%
EPS (adj)

$0.26

Previous: $0.07+271.4%
Adjusted EBITDA Margin

16.2%

Previous: 15.4%+5.2%
Capital Expenditures

$17.4M

Previous: $13M+34.2%
Free Cash Flow

$71M

Previous: $108M-34.0%
Net Income

$43.4M

Previous: $7.4M+487.1%
Operating Income

$76.5M

Previous: $19M+302.3%
Gross Profit

$205M

Previous: $166M+23.6%
Cash & Equivalents

$252M

Previous: $201M+25.0%
Total Assets

$3.53B

Previous: $3.48B+1.7%
Stock-Based Comp

$5.27M

Previous: $5.82M-9.5%

Revenue & EPS history

ChampionX · Revenue · Quarterly

$822M

Q4 2021+16.4%vs Q4 2020
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

ChampionX · $788M total across 4 segments · Q4 2021

  • Production Chemical Tech
    $495M+10.9%
  • Production & Automation Tech
    $203M+27.8%
  • Drilling Technologies
    $50.1M+112.4%
  • Reservoir Chemical Tech
    $39.8M+28.6%

Forward guidance

For Q1 2022, ChampionX expects revenue between $815 million and $845 million, and adjusted EBITDA of $122 million to $130 million. The company anticipates positive top-line and bottom-line growth for the full year, with an exit 2022 adjusted EBITDA margin rate of 18%.

Tailwinds

  • Expect typical seasonal declines in international operations to be partially offset by revenues delayed from Q4 due to supply chain bottlenecks.
  • Positive momentum in shorter-cycle North American land drilling-oriented business.
  • Confident that the company will deliver positive top-line and bottom-line growth.
  • Targeting an exit 2022 adjusted EBITDA margin rate of 18%.
  • Focused on profitable growth and delivering continued margin expansion in each of the businesses as we progress through the year.

Headwinds

  • Expect typical seasonal declines in international operations.
  • Raw material availability and global supply chain bottlenecks to constrain growth somewhat in the first half of 2022.
  • Supply chain bottlenecks which constrained international sales during the period.
  • COVID impact.
  • Continued raw material inflation and logistics headwinds.

Historical earnings impact

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

Avg. return before/after earnings

Based on 12 quarterly earnings reports

Historical avg

+0.7%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+3.6%

Avg return

30 days after

56%

19 / 34 earnings

Positive

+20.5%

Q3 2022

Best reaction

-11.8%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025
Q2 2025
Q1 2025-2.2%-0.4%-2.3%
Q4 2024-0.6%+0.3%+1.2%
Q3 2024-1.8%-1.5%+5.5%
Q2 2024-2.0%-2.4%-8.0%
Q1 2024-0.3%-1.7%-6.5%
Q4 2023+10.4%+10.2%+19.1%
Q3 2023-8.4%-12.6%-13.2%
Q2 2023+0.2%+1.3%+3.6%
Q1 2023+0.1%+1.4%+2.7%
Q4 2022-11.8%-10.2%-0.0%
Q3 2022+20.5%+17.3%+27.5%
Q2 2022-1.8%+1.7%+12.9%
Q1 2022-1.6%
Q4 2021-4.5%
Q3 2021+2.8%
Q2 2021+6.8%
Q1 2021+4.8%
Q4 2020+10.1%
Q3 2020+5.5%
Q2 2020+3.5%
Q1 2020+5.9%
Q4 2019-11.7%
Q3 2019+0.5%
Q2 2019+2.4%
Q1 2019+1.5%
Q4 2016+0.5%
Q4 2018+0.5%
Q3 2017+0.7%
Q3 2018+0.7%
Q2 2017+4.9%
Q2 2018-1.2%
Q1 2017-3.2%
Q4 2017-3.2%
Q1 2018-3.2%

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