NASDAQ$MRCY

Mercury Systems Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Mercury Systems' first quarter fiscal 2023 results were reported, with bookings increasing and backlog growing.

Mercury Systems reported a slight increase in revenue for Q1 2023, with a significant increase in bookings and backlog. However, the company experienced a net loss and a decrease in adjusted earnings per share compared to the previous year. The company is raising the low end of its full-year guidance for revenue and adjusted EBITDA.

  • Bookings increased by 34% year-over-year, reaching $266.9 million and a book-to-bill ratio of 1.17.
  • Record backlog of $1.08 billion, a 22% increase year-over-year.
  • Total revenue increased slightly to $227.6 million, compared to $225.0 million in the first quarter of fiscal 2022.
  • GAAP net loss was $14.3 million, or $0.26 per share, compared to a net loss of $7.1 million, or $0.13 per share, for the first quarter of fiscal 2022.

Headline financials

Total Revenue

$228M

Previous: $225M+1.1%
EPS (adj)

$0.24

Previous: $0.41-41.5%
Total Backlog

$1.08B

No prior period
Capital Expenditures

-$7.33M

Previous: -$5.38M-36.3%
Free Cash Flow

-$21.7M

Previous: -$12.5M-73.1%
Net Income

-$14.3M

Previous: -$7.14M-100.8%
Operating Income

-$7.19M

Previous: -$5.58M-29.0%
Gross Profit

$78.1M

Previous: $88.4M-11.7%
Cash & Equivalents

$52M

Previous: $95.8M-45.7%
Total Assets

$2.35B

Previous: $1.97B+19.5%
Stock-Based Comp

$7.25M

Previous: $9.53M-23.9%

Revenue & EPS history

Mercury · Revenue · Quarterly

$228M

Q1 2023+1.1%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

For the second quarter of fiscal 2023, revenues are forecasted to be in the range of $225.0 million to $240.0 million. GAAP net loss for the second quarter is expected to be approximately $10.3 million to $6.2 million, or $0.18 to $0.11 per share. Adjusted EBITDA for the second quarter of fiscal 2023 is expected to be in the range of $38.0 million to $42.0 million. Adjusted EPS is expected to be in the range of $0.31 to $0.36 per share. For the full fiscal year 2023, revenues are forecasted to be in the range of $1.01 billion to $1.05 billion, and GAAP net income of $14.8 million to $24.7 million, or $0.26 to $0.44 per share. Adjusted EBITDA for the full fiscal year is expected to be approximately $202.5 million to $215.0 million, and adjusted EPS for the full fiscal year is expected to be approximately $1.93 to $2.10 per share.

Tailwinds

  • Revenues are forecasted to be in the range of $225.0 million to $240.0 million for Q2 2023.
  • Adjusted EBITDA for the second quarter of fiscal 2023 is expected to be in the range of $38.0 million to $42.0 million.
  • Adjusted EPS is expected to be in the range of $0.31 to $0.36 per share for Q2 2023.
  • Revenues are forecasted to be in the range of $1.01 billion to $1.05 billion for fiscal year 2023.
  • Adjusted EBITDA for the full fiscal year is expected to be approximately $202.5 million to $215.0 million.

Headwinds

  • GAAP net loss for the second quarter is expected to be approximately $10.3 million to $6.2 million, or $0.18 to $0.11 per share.
  • GAAP net income of $14.8 million to $24.7 million, or $0.26 to $0.44 per share for fiscal year 2023.
  • Actual performance could differ materially from estimates.
  • Estimates include risks with respect to those listed in the Safe Harbor Statement.
  • Estimates include risks with respect to those listed in the First Quarter and Fiscal 2023 Earnings Presentation and in periodic filings.

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 2023

Historical avgQ1 2023

+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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