NASDAQ$MRCY

Mercury Systems Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Mercury Systems' first quarter fiscal 2021 results were reported, showing revenue growth and exceeding guidance.

Mercury Systems reported a strong start to fiscal year 2021, with revenue increasing by 16% year-over-year, including 12% organic growth. The company exceeded its guidance for revenues, net income, adjusted EBITDA, EPS, and adjusted EPS. Mercury's backlog increased by 16% over the prior year, reaching $826 million.

  • Revenue increased 16% year-over-year with 12% organic growth.
  • Revenue, net income, adjusted EBITDA, EPS, and adjusted EPS exceeded guidance.
  • Backlog of $826 million increased 16% over prior year.
  • The first quarter fiscal 2021 results included an aggregate of approximately $8.8 million of revenue attributable to the American Panel Corporation acquired business.

Headline financials

Total Revenue

$206M

Previous: $177M+16.0%
EPS (adj)

$0.51

Previous: $0.44+15.9%
Capital Expenditures

-$11M

Previous: -$9.6M-14.4%
Free Cash Flow

$4.82M

Previous: $9.65M-50.1%
Net Income

$15.8M

Previous: $19.2M-17.9%
Operating Income

$18.8M

Previous: $17.5M+7.4%
Gross Profit

$88.1M

Previous: $78.4M+12.4%
Cash & Equivalents

$239M

Previous: $161M+48.2%
Total Assets

$1.65B

Previous: $1.47B+12.2%
Stock-Based Comp

$7.18M

Previous: $5.66M+26.9%

Revenue & EPS history

Mercury · Revenue · Quarterly

$206M

Q1 2021+16%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

For the second quarter of fiscal 2021, revenues are forecasted to be in the range of $200.0 million to $210.0 million, GAAP net income is expected to be approximately $11.9 million to $13.4 million, and adjusted EPS is expected to be in the range of $0.48 to $0.51 per share. For the full fiscal year 2021, revenue of $865.0 million to $885.0 million, and GAAP net income of $67.9 million to $72.3 million, or $1.22 to $1.30 per share, and adjusted EPS for the full fiscal year is expected to be approximately $2.20 to $2.28 per share.

Tailwinds

  • Revenues are forecasted to be in the range of $200.0 million to $210.0 million for the second quarter of fiscal 2021.
  • GAAP net income for the second quarter is expected to be approximately $11.9 million to $13.4 million.
  • Adjusted EBITDA for the second quarter of fiscal 2021 is expected to be in the range of $42.0 million to $44.0 million.
  • Adjusted EPS is expected to be in the range of $0.48 to $0.51 per share for the second quarter.
  • Revenue of $865.0 million to $885.0 million is expected for the full fiscal year 2021.

Headwinds

  • GAAP net income of $67.9 million to $72.3 million is expected for the full fiscal year.
  • The effective tax rate, excluding discrete items, is expected to be approximately 26% for the remainder of the year.
  • Approximately 55.5 million weighted average diluted shares outstanding are assumed.
  • There should be no incremental restructuring, acquisition, other non-operating adjustments, non-recurring financing in the period.
  • It is possible that actual performance will differ materially from the estimates given, either on the upside or on the downside.

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

+0.8%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+3.8%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+27.0%

Q1 2025

Best reaction

-23.7%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+16.8%+10.8%+34.0%
Q2 2026-18.9%-14.0%-13.0%
Q1 2026+3.4%-1.4%-6.8%
Q3 2025-4.9%-7.8%+5.4%
Q2 2025+18.5%+11.6%+4.2%
Q1 2025+27.0%+28.4%+15.4%
Q4 2024+17.9%+18.1%+8.5%
Q3 2024-1.4%-4.1%+3.4%
Q2 2024-11.5%-3.3%+1.4%
Q1 2024-13.5%-12.9%-2.8%
Q4 2023+3.2%+7.1%+8.4%
Q3 2023-19.7%-13.9%-13.8%
Q2 2023+14.8%+12.9%+9.1%
Q1 2023+3.4%-0.7%+6.4%
Q4 2022-16.1%-14.1%-21.0%
Q3 2022+4.9%+1.0%+11.4%
Q2 2022-8.5%-8.5%+21.1%
Q1 2022+0.3%-1.1%-8.6%
Q4 2021-14.3%-14.3%-23.8%
Q3 2021-23.7%-15.1%-13.3%
Q2 2021+0.2%+6.1%-10.0%
Q1 2021-1.4%-3.0%+0.1%
Q4 2020+0.0%+0.5%-5.3%
Q3 2020+9.3%+2.0%+4.5%
Q2 2020+2.6%+1.6%+5.2%
Q1 2020-1.8%+3.2%+1.8%
Q4 2019+17.5%+15.1%+23.1%
Q3 2019+2.5%+1.7%-3.6%
Q2 2019+18.8%+18.5%+29.6%
Q1 2019+7.6%+10.2%+16.9%
Q4 2018+22.6%+19.9%+35.3%
Q3 2018-23.1%-27.3%-20.0%
Q2 2018-4.4%-5.4%-5.9%
Q1 2018-3.4%-3.4%+1.0%
Q4 2017-0.9%+0.7%+9.9%
Q3 2017-5.8%-5.9%+1.6%
Q2 2017+9.4%+9.9%+21.9%
Q1 2017+13.6%+14.5%+29.8%
Q4 2016-1.6%-9.5%-11.4%
Q3 2016+4.8%
Q2 2016+12.9%
Q1 2016+5.7%
Q4 2015+9.7%
Q3 2015-4.1%
Q2 2015+4.7%
Q1 2015+13.6%
Q4 2014-0.6%
Q3 2014+5.3%
Q2 2014+0.0%
Q1 2014+2.9%
Q4 2013+1.3%
Q3 2013+5.8%
Q2 2013-6.7%
Q1 2013-2.8%
Q4 2010-2.0%
Q4 2012-15.8%
Q3 2011-6.3%
Q3 2012+4.5%
Q2 2011-1.3%
Q2 2012-10.2%
Q4 2011-2.6%
Q1 2011-2.6%
Q1 2012+4.1%
Q3 2010-8.5%

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