NASDAQ$CLFD

Clearfield Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Clearfield reported record revenue and gross profit, driven by strong growth in MSO and Community Broadband markets.

Clearfield reported a strong fiscal third quarter with record revenue of $26.0 million, up 19% year-over-year, and record gross profit of $10.8 million. Net income was $3.0 million, or $0.22 per diluted share. The company ended the quarter with a robust order backlog of $8.5 million.

  • Clearfield achieved record revenue of $26.0 million, a 19% increase year-over-year.
  • MSO revenue increased by 48% year-over-year.
  • Community Broadband revenue increased by 22% year-over-year.
  • Gross profit reached a quarterly record of $10.8 million, with a solid gross profit margin of 41.5%.

Headline financials

Total Revenue

$26M

Previous: $21.9M+18.6%
EPS (adj)

$0.22

Previous: $0.10+120.0%
Capital Expenditures

-$1.49M

Previous: -$1.1M-35.9%
Free Cash Flow

$1.5M

Previous: $201K+645.3%
Net Income

$2.99M

Previous: $1.3M+130.3%
Operating Income

$3.58M

Previous: $1.54M+132.4%
Gross Profit

$10.8M

Previous: $8.41M+28.3%
Cash & Equivalents

$48.4M

Previous: $6.03M+702.5%
Total Assets

$90.9M

Previous: $77.4M+17.4%
Stock-Based Comp

$213K

Previous: $433K-50.8%

Revenue & EPS history

Clearfield · Revenue · Quarterly

$26M

Q3 2020+18.6%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The company has significant momentum going into Q4 and a positive outlook for fiscal 2021, driven by the increasing need for high-speed broadband connectivity.

Tailwinds

  • Demand should be consistent assuming COVID doesn’t hit our manufacturing plants
  • Consumers are demanding bandwidth
  • Service providers are increasing bandwidth
  • Service providers are promising bandwidth tomorrow by the investments that they’re making in infrastructure
  • Very bullish about 2021

Headwinds

  • COVID-19 has impacted the deployment plans for 5G in the near and mid-term
  • Certain carriers identified that in locations where 4G was available they deemed 5G as not an essential service
  • COVID restrictions reduced the number of installation crews deployed in the hard-hit Northeast early in the quarter
  • COVID temporarily delayed two planned field trials with another Tier 1 customer
  • There’s still an awful lot of change out there that we don’t quite know how to anticipate.

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 2020

Historical avgQ3 2020

+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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