NASDAQ$EXPO

Exponent Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported a decrease in net revenues but maintained financial strength.

Exponent, Inc. reported a 12% decrease in net revenues for the second quarter of 2020, while maintaining a strong financial position with $190 million in cash, cash equivalents, and short-term investments and no debt. The company's interdisciplinary solutions remain in demand, particularly in areas related to safety, health, sustainability, and reliability.

  • Net revenues declined by 12% compared to the same period last year.
  • Net income decreased to $16.3 million, or $0.31 per diluted share.
  • Ended the quarter with $190 million in cash, cash equivalents and short-term investments and no debt.
  • The most substantial impact occurred to our litigation support work for the transportation industry, with most assignments paused due to court-related delays.

Headline financials

Total Revenue

$92M

Previous: $107M-13.6%
EPS (adj)

$0.31

Previous: $0.39-20.5%
Capital Expenditures

-$2.47M

Previous: -$12.5M+80.3%
Free Cash Flow

$13.9M

Previous: $8.5M+63.3%
Net Income

$16.3M

Previous: $21M-22.1%
Operating Income

$9.12M

Previous: $24.8M-63.3%

Revenue & EPS history

Exponent · Revenue · Quarterly

$92M

Q2 2020-13.6%vs Q2 2019
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Revenue by segment

Exponent · $87.9M total across 2 segments · Q2 2020

  • Engineering & Other Scientific
    $68.6M
  • Environmental & Health
    $19.3M

Forward guidance

Due to the high degree of uncertainty surrounding how and over what timeframe each region will impose or relax restrictions means that there could be further reduction to our revenues in the short term. Therefore, we cannot reliably provide financial guidance at this time

Headwinds

  • Net revenues for the first three weeks of the third quarter declined approximately 5% to 8% year-over-year.
  • High degree of uncertainty surrounding how and over what timeframe each region will impose or relax restrictions means that there could be further reduction to our revenues in the short term.
  • Cannot reliably provide financial guidance at this time.

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 2020

Historical avgQ2 2020

+0.5%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+2.7%

Avg return

30 days after

52%

33 / 63 earnings

Positive

+18.1%

Q1 2024

Best reaction

-12.4%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.5%-4.0%-12.8%
Q4 2025+12.7%+1.3%+1.5%
Q3 2025+7.9%+10.2%+8.2%
Q1 2025-1.5%-3.8%-1.9%
Q4 2024+1.2%+0.8%-4.8%
Q3 2024-9.5%-8.7%-8.5%
Q2 2024+0.2%+1.7%+1.0%
Q1 2024+18.1%+14.0%+19.5%
Q4 2023-11.1%-11.2%-8.5%
Q3 2023-12.4%-11.7%-6.5%
Q2 2023-6.3%-7.1%-4.8%
Q1 2023-2.3%-3.7%-2.4%
Q4 2022+7.4%+5.5%+1.8%
Q3 2022+3.6%+7.1%+13.0%
Q2 2022+5.9%+3.1%+3.1%
Q1 2022-5.6%-9.9%-10.4%
Q4 2021-10.1%-8.4%+3.8%
Q3 2021+2.7%+2.4%+4.4%
Q2 2021+9.0%+11.5%+17.9%
Q1 2021-0.6%-1.2%-5.9%
Q4 2020+3.2%+8.8%+9.0%
Q3 2020-3.7%+0.4%+15.4%
Q2 2020+2.1%+0.3%+0.0%
Q1 2020-5.8%-7.2%+4.4%
Q3 2019-5.5%-7.3%-8.6%
Q2 2019+9.4%+10.7%+17.4%
Q1 2019-0.8%-0.2%-0.1%
Q4 2018+1.2%+3.3%+14.7%
Q3 2018+0.7%+1.7%+9.3%
Q2 2018-3.0%-0.6%+0.9%
Q1 2018+1.3%+1.1%+11.1%
Q4 2017+3.2%+1.3%+3.2%
Q3 2017-3.4%-2.4%-1.5%
Q2 2017+13.7%+11.5%+10.3%
Q1 2017+1.7%+1.6%+0.3%
Q4 2016-3.1%+0.0%+0.8%
Q3 2016+10.3%+15.5%+23.3%
Q2 2016-11.2%-11.2%-13.7%
Q1 2016-0.2%
Q4 2015+2.4%
Q3 2015+6.8%
Q2 2015-0.6%
Q1 2015+6.9%
Q4 2014+8.5%
Q3 2014+0.5%
Q2 2014+6.4%
Q1 2014-3.0%
Q4 2013+0.1%
Q3 2013+3.9%
Q2 2013-0.8%
Q1 2013+0.8%
Q4 2012-11.5%
Q3 2012+1.6%
Q2 2012-0.5%
Q1 2011-1.8%
Q1 2012+1.1%
Q4 2011+3.7%
Q1 2010+3.7%
Q3 2010-2.3%
Q3 2011-2.3%
Q2 2011-2.0%
Q4 2010-2.0%
Q2 2010-2.0%

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