NASDAQ$FSTR

Foster (Lb) Co-A · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

L.B. Foster's Q4 2020 results were impacted by the pandemic and weakness in the energy market, with sales and gross profit declining year-over-year.

L.B. Foster reported a decrease in net sales and gross profit for the fourth quarter of 2020, primarily due to the impact of the COVID-19 pandemic and weakness in the energy market. Net income from continuing operations was $2.3 million, or $0.21 per diluted share. New orders decreased by 23.4% from the prior year, but backlog increased by 8.4%.

  • Net income from continuing operations decreased to $2.3 million, or $0.21 per diluted share.
  • Net sales decreased by 18.2% to $115.6 million, with a significant portion of the decline from divisions serving midstream energy customers.
  • New orders decreased by 23.4%, while backlog increased by 8.4%, driven by Rail and Infrastructure segments.
  • Gross profit decreased by 23.1% to $21.7 million, with a gross profit margin of 18.8%.

Headline financials

Total Revenue

$116M

Previous: $149M-22.6%
EPS (adj)

$0.24

Previous: $0.08+200.0%
Gross Profit Margin

18.8%

No prior period
Adjusted EBITDA

$6.9M

Previous: $9.6M-28.1%
New Orders, Net

$134M

No prior period
Capital Expenditures

$1.53M

Previous: $3.79M-59.7%
Net Income

$2.3M

Previous: $26.3M-91.3%
Operating Income

$2.14M

Previous: -$1.3M+265.0%
Gross Profit

$21.7M

Previous: $27.4M-20.8%
Cash & Equivalents

$7.56M

Previous: $14.2M-46.6%
Total Assets

$370M

Previous: $405M-8.6%
Stock-Based Comp

-$706K

Previous: $245K-388.2%

Revenue & EPS history

Foster · Revenue · Quarterly

$116M

Q4 2020-22.6%vs Q4 2019
Beat estimate in 3 of 12 quarters(25%)
ActualEstimate

Revenue by segment

Foster · $80.1M total across 1 segment · Q4 2020

  • Infrastructure Solutions
    $80.1M

Forward guidance

The company anticipates continued disruption at least through the first half of 2021 as various restrictive measures have remained in effect in the major markets we serve. The Rail segment is anticipating further recovery in Rail Technologies, although continued pandemic-related lockdowns in the United Kingdom may hamper such recovery in the near term. Current project inquiries lead the Company to believe that the first half of 2021 will improve modestly from this level.

Tailwinds

  • Rail Products bookings were strong in the fourth quarter of 2020, reflecting a $15.1 million increase over the third quarter of 2020.
  • Projects associated with long-term planning have been moving forward.
  • The Fabricated Steel Products division experienced substantial year-over-year increases in backlog of $22.3 million.
  • The Precast Concrete Products division continues to benefit from new infrastructure projects, which is reflected in a year-over-year backlog increase of $7.0 million.
  • Current project inquiries lead the Company to believe that the first half of 2021 will improve modestly from this level.

Headwinds

  • The Company anticipates continued disruption at least through the first half of 2021 as various restrictive measures have remained in effect in the major markets we serve.
  • Continued pandemic-related lockdowns in the United Kingdom may hamper such recovery in the near term.
  • The Company is not expecting a notable improvement in the sales of consumable products until passenger and freight volumes improve.
  • Offsetting these increases in the Infrastructure Solutions segment was the reduction in the Coatings and Measurement division's backlog, which fell by $27.6 million from December 31, 2019.
  • This decline is primarily due to Coatings and Measurement's exposure to the midstream energy market, and the associated weakness in demand for oil in 2020.

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 Q4 2020

Historical avgQ4 2020

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro