NASDAQ$CVGI

Commercial Vehicle Group Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record sales and increased profitability due to strong demand in legacy and target markets, along with new business awards.

CVG reported record first-quarter sales of $245.1 million, a 31.0% increase year-over-year, driven by new business wins and demand growth in warehouse automation and global vehicle markets. The company's net income increased to $8.5 million, or $0.26 per diluted share, and secured an estimated $100 million of net new annualized business.

  • Revenue increased by 31.0% to $245.1 million due to new business, warehouse automation, and global vehicle market growth.
  • Operating income rose to $15.4 million, driven by higher sales volume and the absence of a prior-year impairment.
  • Net income reached $8.5 million, or $0.26 per diluted share, a significant increase from the previous year.
  • Warehouse automation revenues grew to $41.9 million, representing 17.1% of total sales.

Headline financials

Total Revenue

$245M

Previous: $187M+31.0%
EPS (adj)

$0.27

Previous: $0.02+1250.0%
Gross Margin

12.7%

No prior period
Operating Margin

6.3%

No prior period
Adjusted Operating Margin

6.4%

No prior period
Capital Expenditures

-$1.74M

Previous: -$3.47M+50.0%
Free Cash Flow

$6.75M

Previous: -$28.1M+124.1%
Net Income

$8.49M

Previous: -$24.6M+134.5%
Operating Income

$15.4M

Previous: -$26.5M+158.1%
Gross Profit

$31.1M

Previous: $20.3M+53.3%
Cash & Equivalents

$38.1M

Previous: $58.1M-34.3%
Total Assets

$492M

Previous: $431M+14.1%
Stock-Based Comp

$965K

Previous: $862K+11.9%

Revenue & EPS history

CVG · Revenue · Quarterly

$245M

Q1 2021+31%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

CVG · $253M total across 2 segments · Q1 2021

  • Global Electrical Systems
    $162M+44.7%
  • Global Seating
    $91.1M+19.9%

Forward guidance

The company anticipates some customers moderating their production outlooks due to semiconductor chip and material shortages, as well as cost inflation from supply chain dislocations. Demand and orders are robust, but headwinds exist regarding increasing production rates, raw material inflation, labor inflation, and freight inflation.

Tailwinds

  • Demand outlook for legacy vehicle markets is favorable.
  • North American Class 8 truck production levels are expected to increase.
  • Demand outlook for the electric vehicle market is favorable.
  • Adoption rates for electric vehicles are forecast to increase.
  • Demand for warehouse automation products is expected to grow approximately 14% annually through 2026.

Headwinds

  • Customers moderating production outlooks.
  • Semiconductor chip and material shortages.
  • Cost inflation due to dislocations in the supply chain.
  • Headwinds with regards to increasing production rates.
  • Raw material inflation, labor inflation, and freight inflation.

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 Q1 2021

Historical avgQ1 2021

+0.5%

Avg return

Earnings day

+5.7%

Avg return

5 days after

+7.1%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+32.0%

Q2 2020

Best reaction

-23.8%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.7%+20.0%+29.9%
Q4 2026+25.5%+123.5%+142.0%
Q3 2025+0.0%+2.0%+8.7%
Q1 2025+14.7%+60.0%+56.7%
Q4 2024-3.8%-15.6%-50.5%
Q3 2024-20.3%-15.9%-23.6%
Q2 2024-17.6%-28.8%-31.7%
Q1 2024-6.4%-5.9%-9.2%
Q4 2023-8.2%-7.5%-3.7%
Q3 2023-10.9%-15.5%-0.9%
Q2 2023+8.9%-2.8%-12.3%
Q1 2023+18.5%+36.7%+32.5%
Q4 2022-12.7%-10.7%-18.7%
Q3 2022+4.5%+21.1%+48.8%
Q2 2022+0.7%-2.6%-17.2%
Q1 2022+1.5%-3.5%-3.2%
Q4 2021-1.8%+7.5%+7.9%
Q3 2021-10.8%-11.7%-17.0%
Q2 2021+2.7%+5.0%+11.2%
Q1 2021+7.4%+17.0%+0.6%
Q4 2020+0.5%+7.1%-0.6%
Q3 2020+4.9%+9.3%+31.8%
Q2 2020+32.0%+48.1%+59.9%
Q1 2020+6.1%+21.9%+64.5%
Q4 2019-23.8%-40.7%-53.3%
Q3 2019-4.6%-5.0%-9.3%
Q2 2019-7.3%-8.4%-22.6%
Q1 2019-6.5%-16.1%-27.7%
Q4 2018+4.4%+0.8%+7.4%
Q3 2018-1.4%-2.1%-5.3%
Q2 2018+24.0%+26.8%+32.5%
Q1 2018+27.4%+19.8%+15.1%
Q4 2017-19.2%-21.3%-34.2%
Q3 2017+21.6%+20.1%+32.1%
Q2 2017-21.4%-28.7%-25.2%
Q1 2017-2.5%+10.5%-0.1%
Q4 2016-2.3%-4.4%+13.1%
Q3 2016+1.7%+4.1%+12.9%
Q2 2016+7.7%+9.7%+37.2%
Q1 2016+12.8%
Q4 2015-9.2%
Q3 2015-6.7%
Q2 2015-12.3%
Q1 2015+3.0%
Q4 2014+11.5%
Q3 2014-1.0%
Q2 2014-0.5%
Q1 2014-6.4%
Q4 2013+2.2%
Q3 2013-5.3%
Q2 2013-7.7%
Q1 2013+3.6%
Q4 2012-4.8%
Q3 2012+4.3%
Q2 2012-8.6%
Q1 2011-2.3%
Q1 2012+4.5%
Q4 2009+5.5%
Q4 2011+5.5%
Q3 2011+19.2%
Q3 2010+19.2%
Q4 2010-12.3%
Q2 2010-12.3%
Q2 2011-12.3%
Q1 2010+8.0%

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