NASDAQ$FSTR

Foster (Lb) Co-A · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported a decrease in net sales due to a decline in the Rail, Technologies, and Services segment and the divestiture of the Piling Products division, partially offset by an increase in the Precast Concrete Products segment.

L.B. Foster reported a decrease in net sales for the second quarter of 2022, primarily due to the divestiture of its Piling Products division and a decline in the Rail, Technologies, and Services segment. However, new orders and backlog increased, and the company completed two acquisitions in the U.K.

  • New orders increased by 2.1% year-over-year, and 24.7% excluding the Piling Products division.
  • Net sales decreased by 14.9% compared to the prior year quarter.
  • Operating profit decreased by 49.6% compared to the prior year quarter.
  • The company completed the acquisitions of Skratch Enterprises Ltd. and Intelligent Video Ltd.

Headline financials

Total Revenue

$132M

Previous: $155M-14.9%
EPS (adj)

$0.18

Previous: $0.27-33.3%
Adjusted EBITDA

$6.1M

Previous: $8.34M-26.9%
New Orders, Net

$141M

Previous: $139M+2.0%
Backlog

$251M

No prior period
Capital Expenditures

-$3.05M

Previous: -$2.25M-35.6%
Free Cash Flow

-$1.04M

Previous: $628K-265.3%
Net Income

$2.01M

Previous: $2.88M-30.1%
Operating Income

$2.48M

Previous: $4.89M-49.2%
Gross Profit

$23.3M

Previous: $26.2M-11.0%
Cash & Equivalents

$7.66M

Previous: $4.14M+85.0%
Total Assets

$365M

Previous: $380M-3.8%
Stock-Based Comp

$925K

Previous: $386K+139.6%

Revenue & EPS history

Foster · Revenue · Quarterly

$132M

Q2 2022-14.9%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Foster · $16.2M total across 1 segment · Q2 2021

  • Infrastructure Solutions
    $16.2M

Forward guidance

The Company is maintaining its optimistic outlook regarding the longer-term trends in its core end markets of freight and transit rail and general infrastructure.

Tailwinds

  • Government infrastructure spending programs will provide funding for key infrastructure projects.
  • Orders totaled $276.8 million, up 21.2% over the same period last year when adjusted for the Piling divestiture
  • Backlog finished at a robust $250.8 million at quarter end, up 14.3% versus last year when adjusted for the Piling divestiture
  • Overall quotation activity and demand in these markets continues to improve
  • Additional flexibility and capacity resulting from the amendment and extension of our credit agreement completed in August 2021

Headwinds

  • Recessionary conditions are expanding in many industrial markets
  • Quotation activity and demand in these markets continues to improve, they are still below pre-pandemic levels, particularly in its rail markets
  • The present inflationary environment in labor and raw materials continues to pressure margins across the business
  • We have not yet seen significant business activity from the IIJA
  • Raw materials, labor, supply chains, service partner resources, and lingering COVID-19 related effects to mitigate their adverse impact on its operations and results as much as possible

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 2022

Historical avgQ2 2022

-2.6%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.5%

Avg return

30 days after

36%

23 / 64 earnings

Positive

+25.8%

Q1 2017

Best reaction

-36.2%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+19.1%+37.8%+35.0%
Q4 2025-8.3%-10.1%-13.0%
Q3 2025-0.5%-1.1%-0.3%
Q1 2025-3.8%-11.7%-6.9%
Q4 2024-12.3%-19.4%-28.0%
Q3 2024+2.4%+10.1%+36.5%
Q2 2024-21.9%-11.5%-8.1%
Q1 2024+10.4%+22.3%+7.0%
Q4 2023-7.0%-4.0%+9.9%
Q3 2023-6.6%-5.3%-7.9%
Q2 2023+10.2%+20.8%+26.2%
Q1 2023-1.4%-2.5%+29.6%
Q4 2022+0.2%-1.3%-6.2%
Q3 2022+3.2%+12.9%-18.5%
Q2 2022-4.3%-3.7%-24.1%
Q1 2022-4.0%-5.1%+2.2%
Q4 2021-5.7%-2.2%-2.2%
Q3 2021-0.7%-0.2%-7.8%
Q2 2021-0.8%-0.8%-7.2%
Q1 2021+0.9%+4.0%+13.4%
Q4 2020+1.1%+4.5%+5.4%
Q3 2020-1.8%+2.8%+7.5%
Q2 2020+0.3%+3.3%-2.8%
Q1 2020-10.7%-9.6%+9.8%
Q4 2019-6.6%-7.7%-34.1%
Q3 2019-9.2%-8.8%-6.0%
Q2 2019-7.0%-7.8%-22.9%
Q1 2019+16.5%+15.9%+11.4%
Q4 2018-3.1%-0.6%+26.0%
Q3 2018+10.3%+15.4%+6.4%
Q2 2018+13.9%+11.6%+4.1%
Q1 2018-2.5%-7.4%-1.5%
Q4 2017-8.6%-12.1%-17.7%
Q3 2017-10.5%-9.3%-7.1%
Q2 2017+7.1%+9.7%+8.6%
Q1 2017+25.8%+19.4%+29.7%
Q4 2016-0.2%-4.8%-13.5%
Q3 2016-23.2%-12.2%+21.3%
Q2 2016-17.9%-16.1%+5.3%
Q1 2016-36.2%
Q4 2015+13.0%
Q3 2015-28.8%
Q2 2015-28.3%
Q1 2015+0.2%
Q4 2014-20.5%
Q3 2014-1.8%
Q2 2014+5.4%
Q1 2014-1.1%
Q4 2013+5.3%
Q3 2013-2.2%
Q2 2013-6.0%
Q1 2013+3.1%
Q4 2012-4.5%
Q3 2012+11.3%
Q2 2012+9.0%
Q1 2011+2.7%
Q1 2012+2.7%
Q4 2011-1.6%
Q4 2009-1.6%
Q3 2010-4.4%
Q3 2011-4.4%
Q2 2011-6.6%
Q2 2010-6.6%
Q4 2010-6.6%

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