NASDAQ$NWPX

Northwest Pipe Company · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2023 financial results.

Northwest Pipe Company reported a 3.1% increase in net sales to $110.2 million for the fourth quarter of 2023, compared to $106.8 million in the fourth quarter of 2022. Net income was $5.4 million, or $0.54 per diluted share, compared to $8.0 million, or $0.79 per diluted share, in the fourth quarter of 2022.

  • Net sales increased 3.1% to $110.2 million.
  • Gross profit decreased 11.8% to $19.3 million.
  • Net income was $5.4 million, or $0.54 per diluted share.
  • SPP backlog was $273 million as of December 31, 2023.

Headline financials

Total Revenue

$110M

Previous: $107M+3.1%
EPS (adj)

$0.54

Previous: $0.85-36.5%
Consolidated Gross Margin

17.5%

No prior period
WTS Gross Margin

14.9%

No prior period
Precast Gross Margin

23.2%

No prior period
WTS Backlog

$273M

No prior period
WTS Backlog & Confirmed

$319M

No prior period
Precast Order Book

$46M

No prior period
Capital Expenditures

-$5.05M

Previous: $11M-145.7%
Net Income

$5.4M

Previous: $8M-32.5%
Operating Income

$8.72M

Previous: $0.00
Gross Profit

$19.4M

Previous: $21.9M-11.5%
Stock-Based Comp

$622K

Previous: $1.23M-49.2%

Revenue & EPS history

Northwest Pipe · Revenue · Quarterly

$110M

Q4 2023+3.1%vs Q4 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Northwest Pipe · $38.2M total across 1 segment · Q3 2023

  • Precast Infrastructure
    $38.2M-2.8%

Forward guidance

First quarter SPP net sales are expected to decline compared to the fourth quarter of 2023, but expected to remain well above first quarter 2023 levels. Year-over-year SPP margins in the first quarter are expected to improve moderately compared to 2023. Precast net sales in the first quarter are expected to be similar to the same quarter last year with near-term margins remaining compressed.

Tailwinds

  • Anticipate a significantly stronger bidding year in 2024 for SPP.
  • Expect year-over-year SPP margins in the first quarter to improve moderately compared to 2023.
  • Growth strategy remains focused on growing our Precast business to reduce the cyclicality of our SPP operations
  • Growth strategy remains focused on improving our overall margins
  • Growth strategy remains focused on improving cash flow generation

Headwinds

  • First quarter SPP net sales are expected to decline compared to the fourth quarter of 2023 due to typical seasonality and severe weather conditions.
  • Precast margins were compressed due to reduced overhead absorption on lower demand.
  • Early 2024 weather events have also caused unscheduled downtime in our Precast facilities, further suppressing the already seasonally slow first quarter.
  • Near-term Precast margins remaining compressed.
  • The SPP business had one of the smallest bidding volume periods we have seen in many years

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 2023

Historical avgQ4 2023

+0.7%

Avg return

Earnings day

+3.3%

Avg return

5 days after

+5.4%

Avg return

30 days after

48%

31 / 64 earnings

Positive

+15.4%

Q3 2021

Best reaction

-19.5%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+14.3%+29.5%+37.1%
Q4 2025+10.2%+9.4%+3.4%
Q3 2025+1.6%+14.4%+5.3%
Q1 2025-6.2%-11.0%-8.8%
Q4 2024-10.7%-13.9%-13.5%
Q3 2024-0.7%+4.5%+24.0%
Q2 2024+1.6%+4.4%+17.7%
Q1 2024+2.0%+5.6%+12.1%
Q4 2023-0.8%+13.6%+16.6%
Q3 2023+1.2%-7.0%-2.6%
Q2 2023-2.0%+0.1%+2.1%
Q1 2023-3.3%-4.5%+1.4%
Q4 2022-19.5%-18.1%-24.5%
Q3 2022-5.2%-2.2%+4.7%
Q2 2022+7.9%+11.2%+13.3%
Q1 2022+1.7%+7.5%+27.1%
Q4 2021+1.0%-3.1%-7.1%
Q3 2021+15.4%+19.7%+19.9%
Q2 2021-1.1%-4.5%-8.7%
Q1 2021-1.8%-2.6%-5.1%
Q4 2020-5.7%-3.4%-4.1%
Q3 2020-3.0%-4.8%+4.1%
Q2 2020+6.5%+10.9%+8.2%
Q1 2020+1.2%-6.3%+20.6%
Q4 2019-2.6%-8.5%-34.7%
Q3 2019+3.0%+9.6%+16.0%
Q2 2019+2.2%+11.5%+13.4%
Q1 2019+4.2%+9.7%+2.6%
Q4 2018+0.7%+1.8%+6.4%
Q3 2018+14.1%+26.4%+13.7%
Q2 2018+1.0%+0.1%-6.2%
Q1 2018-3.3%+1.2%+8.8%
Q4 2017+2.0%+5.8%-4.4%
Q3 2017-1.8%-1.9%+0.4%
Q2 2017+3.1%+7.0%+21.5%
Q1 2017+2.9%+6.2%+5.4%
Q4 2016+4.5%-1.6%-17.6%
Q3 2016+6.4%+4.6%+38.4%
Q2 2016+7.0%+8.2%+3.9%
Q1 2016-6.0%
Q4 2015-15.4%
Q3 2015+8.5%
Q2 2015+7.6%
Q1 2015-5.1%
Q4 2014-4.5%
Q3 2014-5.0%
Q2 2014-0.7%
Q1 2014-1.6%
Q4 2013-3.8%
Q3 2013-0.7%
Q2 2013-5.5%
Q1 2013-1.3%
Q4 2012+11.9%
Q3 2012-5.6%
Q2 2012+5.8%
Q1 2011-1.0%
Q4 2009-1.0%
Q3 2011-1.0%
Q3 2010-1.0%
Q4 2011-1.0%
Q1 2012-1.0%
Q2 2010+7.4%
Q2 2011+7.4%
Q4 2010+7.4%

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