NASDAQ$CLFD

Clearfield Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Demand for fiber-fed broadband networks expanded across the community broadband market, driving a 45% increase in net sales and a significant improvement in net income.

Clearfield reported a strong fiscal second quarter with a 45% increase in net sales to $29.7 million, driven by growth in the Community Broadband and MSO markets. Gross margin improved to 43.6%, and net income reached $3.6 million, or $0.27 per diluted share. The company's backlog increased by 115% to $19.2 million, and they anticipate shipping the majority of it during fiscal Q3.

  • Net sales increased by 45% to $29.7 million, driven by Community Broadband and MSO markets.
  • Gross profit increased by 59% to $12.9 million, representing 43.6% of net sales.
  • Net income improved to $3.6 million, or $0.27 per diluted share.
  • Order backlog increased by 115% to $19.2 million.

Headline financials

Total Revenue

$29.7M

Previous: $20.4M+45.5%
EPS (adj)

$0.27

Previous: $0.05+440.0%
Capital Expenditures

-$682K

Previous: -$1.18M+42.4%
Free Cash Flow

$2.96M

Previous: -$435K+779.3%
Net Income

$3.64M

Previous: $748K+386.7%
Operating Income

$4.45M

Previous: $720K+518.1%
Gross Profit

$12.9M

Previous: $8.15M+58.8%
Cash & Equivalents

$57.9M

Previous: $48.4M+19.6%
Total Assets

$104M

Previous: $87.2M+19.0%
Stock-Based Comp

$334K

Previous: $87.9K+280.1%

Revenue & EPS history

Clearfield · Revenue · Quarterly

$29.7M

Q2 2021+45.5%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Clearfield anticipates net sales of $120 million to $125 million in fiscal 2021, representing year-over-year growth of 32% at the midpoint. Net income is expected to be at or above 12% as a percentage of net sales.

Tailwinds

  • Rural broadband market remains ripe for growth.
  • Strategic investments made over the last 10 years will be beneficial.
  • Growing backlog.
  • Expanding pipeline.
  • Building market demand.

Headwinds

  • Volatility of the supply chain potentially poses challenges in the near term.
  • Selling, general and administrative costs will grow moderately as travel re-emerges.
  • Strategic investments in additional customer-facing positions
  • Pressure on supply chain due to increased demand
  • Global supply chain disruptions

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

+1.6%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+3.8%

Avg return

30 days after

57%

36 / 63 earnings

Positive

+27.5%

Q4 2022

Best reaction

-20.0%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+6.6%+13.3%+6.4%
Q1 2026-4.6%+3.1%-1.5%
Q4 2025-4.9%-0.1%+0.2%
Q2 2025+9.1%+17.8%+22.7%
Q1 2025-5.9%-10.7%-22.4%
Q4 2024-5.7%-8.9%-15.6%
Q3 2024-10.1%-11.8%-14.1%
Q2 2024+16.8%+17.6%+23.7%
Q1 2024+16.9%+14.9%+25.2%
Q4 2023+1.6%+9.4%+15.5%
Q3 2023-12.8%-12.4%-23.1%
Q2 2023-17.0%-13.5%-4.3%
Q1 2023-12.4%-8.5%-13.8%
Q4 2022+27.5%+35.9%+7.1%
Q3 2022+17.1%+23.1%+45.6%
Q2 2022+7.0%+6.2%+13.2%
Q1 2022+16.0%+20.7%+26.1%
Q4 2021+5.9%+7.6%+4.8%
Q3 2021+17.5%+9.4%+16.4%
Q2 2021+23.4%+25.8%+24.9%
Q1 2021-5.9%-4.5%-2.7%
Q4 2020+6.1%+11.2%+10.2%
Q3 2020+24.9%+33.9%+29.6%
Q2 2020-2.0%+3.9%+6.3%
Q1 2020+3.0%+1.6%-13.9%
Q4 2019+4.8%+5.1%+19.3%
Q3 2019-4.2%-6.3%-22.9%
Q2 2019-3.0%-4.2%-7.7%
Q1 2019+1.2%+1.1%+22.5%
Q4 2018+9.7%-3.3%-6.3%
Q3 2018+8.4%+14.1%+18.1%
Q2 2018-3.8%-7.9%-16.5%
Q1 2018+2.1%+2.9%+22.9%
Q4 2017-13.0%-12.6%-7.7%
Q3 2017-13.4%-17.8%-11.6%
Q2 2017-11.3%-12.5%-13.5%
Q1 2017-3.7%-9.0%-13.0%
Q4 2016+4.3%+2.4%+8.7%
Q3 2016+1.7%-1.6%-9.2%
Q2 2016+9.4%
Q1 2016+14.0%
Q4 2015-20.0%
Q3 2015+25.4%
Q2 2015-8.8%
Q1 2015+1.4%
Q4 2014-10.1%
Q3 2014-17.6%
Q2 2014-19.9%
Q1 2014+7.8%
Q4 2013+10.3%
Q3 2013-15.8%
Q2 2013+7.1%
Q1 2013+14.3%
Q4 2012-0.6%
Q3 2012-2.4%
Q2 2012-1.8%
Q1 2011+0.2%
Q1 2012-1.8%
Q4 2011+1.9%
Q2 2011+1.9%
Q4 2010+0.7%
Q3 2011+0.7%
Q2 2010+6.2%

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