NASDAQ$MRCY

Mercury Systems Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported record fourth quarter and fiscal year 2020 results.

Mercury Systems reported a strong fourth quarter and fiscal year 2020, achieving record bookings, revenues, net income, EPS, and backlog. The company's resilience was evident amidst the COVID-19 pandemic, with a focus on supporting customers and ensuring employee safety. The company is well-positioned for continued growth and profitability.

  • Record bookings of $279 million, a 15% increase year-over-year.
  • Record revenue increased 23% year-over-year, with 17% organic growth.
  • Record net income, adjusted EBITDA, EPS and adjusted EPS were achieved.
  • Record backlog increased 33% year-over-year.

Headline financials

Total Revenue

$217M

Previous: $177M+22.8%
EPS (adj)

$0.72

Previous: $0.47+53.2%
Total Backlog

$831M

No prior period
Capital Expenditures

$11.5M

Previous: $8.83M+30.3%
Free Cash Flow

$17.2M

Previous: $17.1M+0.5%
Net Income

$27.2M

Previous: $12.8M+112.6%
Operating Income

$26.4M

Previous: $20.9M+26.7%
Gross Profit

$96.6M

Previous: $79.8M+21.0%
Cash & Equivalents

$227M

Previous: $258M-12.1%
Total Assets

$1.61B

Previous: $1.42B+13.7%
Stock-Based Comp

$7.53M

Previous: $4.59M+64.3%

Revenue & EPS history

Mercury · Revenue · Quarterly

$217M

Q4 2020+22.8%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

For the first quarter of fiscal 2021, revenues are forecasted to be in the range of $190.0 million to $205.0 million. GAAP net income for the first quarter is expected to be approximately $10.1 million to $12.3 million, or $0.18 to $0.22 per share. Adjusted EBITDA for the first quarter of fiscal 2021 is expected to be in the range of $38.0 million to $41.0 million. Adjusted EPS is expected to be in the range of $0.43 to $0.47 per share.

Tailwinds

  • Revenues are forecasted to be in the range of $190.0 million to $205.0 million.
  • GAAP net income for the first quarter is expected to be approximately $10.1 million to $12.3 million.
  • EPS is expected to be $0.18 to $0.22 per share.
  • Adjusted EBITDA for the first quarter of fiscal 2021 is expected to be in the range of $38.0 million to $41.0 million.
  • Adjusted EPS is expected to be in the range of $0.43 to $0.47 per share.

Headwinds

  • Actual performance may differ materially from estimates.
  • Estimates are subject to risks including those listed in the Safe Harbor Statement.
  • Assumes no incremental restructuring, acquisition, or other non-operating adjustments.
  • Assumes no non-recurring financing in the period.
  • Assumes an effective tax rate, excluding discrete items, of approximately 26%.

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

+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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