NASDAQ$PKOH
Park-Ohio Holdings Corp · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Park-Ohio experienced a challenging second quarter due to the COVID-19 pandemic, which significantly weakened customer demand across most of its key end markets, but the company took actions to reduce costs and manage working capital, and saw improvement in sales and earnings in June as demand began to recover.
Park-Ohio Holdings Corp. reported net sales of $228.3 million in Q2 2020, a decrease from $415.3 million in Q2 2019. The net loss attributable to ParkOhio common shareholders was $(16.6) million, or $(1.38) per diluted share, compared to net income of $7.6 million, or $0.61 per diluted share, in the same quarter of the previous year. On an adjusted basis, the net loss was $(1.17) per diluted share, compared to net income of $1.07 per diluted share in Q2 2019. The company's performance was significantly impacted by the COVID-19 pandemic, but actions were taken to reduce costs and manage capital, with improvements seen in June.
- Net sales decreased to $228.3 million compared to $415.3 million in the second quarter of 2019.
- Net loss attributable to ParkOhio common shareholders was $(16.6) million, or $(1.38) per diluted share.
- Adjusted net loss attributable to ParkOhio common shareholders was $(1.17) per diluted share.
- Liquidity at June 30, 2020, was $196.9 million, including $51.9 million in cash and $145.0 million of unused borrowing capacity.
Headline financials
Revenue & EPS history
Park-Ohio · Revenue · Quarterly
$228M
Revenue by segment
Park-Ohio · $228M total across 3 segments · Q2 2020
- Supply Technologies$94.4M-41.5%41.3%
- Engineered Products$79M-32.8%34.6%
- Assembly Components$54.9M-59.7%24.0%
Forward guidance
We expect demand to continue to improve in the third and fourth quarters as the global economy recovers and expect our margins to benefit from the permanent cost reduction actions taken during the downturn. We expect segment sales levels to increase throughout the second half of 2020 due to improved global auto production and volumes on new business launched in most of our production plants. We expect bookings of new equipment and aftermarket parts and services to improve throughout the second half of 2020 as customers begin to resume capital spending during the economic recovery.
Tailwinds
- Demand is expected to improve in Q3 and Q4 as the global economy recovers.
- Margins are expected to benefit from cost reduction actions.
- Segment sales are expected to increase in the second half of 2020 due to improved global auto production.
- New business launched in most production plants should drive volume.
- Bookings of new equipment and aftermarket parts and services are expected to improve as customers resume capital spending.
Headwinds
- The ultimate impact the COVID-19 pandemic has on our business, results of operations, financial position and liquidity
- Our substantial indebtedness
- The uncertainty of the global economic environment
- General business conditions and competitive factors, including pricing pressures and product innovation
- Demand for our products and services
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 Q2 2020
+0.5%
Avg return
Earnings day
+2.6%
Avg return
5 days after
+4.2%
Avg return
30 days after
54%
35 / 65 earnings
Positive
+29.5%
Q1 2022
Best reaction
-37.2%
Q1 2016
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +1.4% | -2.3% | +5.7% | |
| Q4 2025 | +4.4% | -4.7% | -10.1% | |
| Q3 2025 | -9.3% | -7.0% | +3.0% | |
| Q1 2025 | -8.9% | -5.4% | -16.4% | |
| Q4 2024 | +3.6% | -2.3% | -14.9% | |
| Q3 2024 | +10.3% | +15.4% | +7.9% | |
| Q2 2024 | +0.9% | +1.1% | +0.4% | |
| Q1 2024 | +6.0% | +8.2% | +6.0% | |
| Q4 2023 | -9.2% | -10.6% | -2.0% | |
| Q3 2023 | +22.8% | +12.2% | +6.3% | |
| Q2 2023 | -1.0% | -7.1% | -2.5% | |
| Q1 2023 | +15.0% | +19.8% | +31.8% | |
| Q4 2022 | +1.8% | -3.9% | +1.5% | |
| Q3 2022 | +5.0% | +13.3% | +0.7% | |
| Q2 2022 | +1.4% | +7.9% | -9.6% | |
| Q1 2022 | +29.5% | +47.8% | +101.5% | |
| Q4 2021 | +4.6% | +6.4% | -14.3% | |
| Q3 2021 | +0.0% | +1.8% | -15.3% | |
| Q2 2021 | -10.9% | -15.8% | -8.0% | |
| Q1 2021 | -0.7% | +1.0% | -1.6% | |
| Q4 2020 | +8.2% | +9.9% | -6.4% | |
| Q3 2020 | +5.1% | +11.2% | +44.4% | |
| Q2 2020 | +4.1% | +9.3% | +3.0% | |
| Q1 2020 | -10.4% | -14.1% | +10.6% | |
| Q4 2019 | -32.7% | -23.0% | +7.6% | |
| Q3 2019 | +4.7% | +3.0% | -2.6% | |
| Q2 2019 | -7.3% | -7.6% | -9.7% | |
| Q1 2019 | -4.1% | -7.3% | -15.8% | |
| Q4 2018 | +5.9% | +3.8% | +8.0% | |
| Q3 2018 | +10.9% | +7.6% | +4.5% | |
| Q2 2018 | +9.4% | +6.4% | +7.9% | |
| Q1 2018 | +3.6% | +12.5% | +11.7% | |
| Q4 2017 | +9.8% | +9.6% | -3.2% | |
| Q3 2017 | -8.4% | -9.3% | -6.6% | |
| Q2 2017 | -0.8% | -0.8% | +0.5% | |
| Q1 2017 | -4.3% | -7.7% | -4.6% | |
| Q4 2016 | -12.0% | -15.0% | -14.6% | |
| Q3 2016 | +14.7% | +24.4% | +39.0% | |
| Q2 2016 | +14.0% | +13.1% | +18.1% | |
| Q1 2016 | -37.2% | — | — | |
| Q4 2015 | +9.0% | — | — | |
| Q3 2015 | +9.6% | — | — | |
| Q2 2015 | -1.6% | — | — | |
| Q1 2015 | +6.5% | — | — | |
| Q4 2014 | -15.4% | — | — | |
| Q3 2014 | +2.4% | — | — | |
| Q2 2014 | -3.3% | — | — | |
| Q1 2014 | -5.2% | — | — | |
| Q4 2013 | +4.4% | — | — | |
| Q3 2013 | -2.6% | — | — | |
| Q2 2013 | -3.9% | — | — | |
| Q1 2013 | +0.2% | — | — | |
| Q4 2009 | +5.2% | — | — | |
| Q4 2012 | +15.9% | — | — | |
| Q3 2012 | +0.2% | — | — | |
| Q2 2012 | -2.0% | — | — | |
| Q1 2011 | -0.4% | — | — | |
| Q1 2012 | +7.7% | — | — | |
| Q4 2011 | -0.6% | — | — | |
| Q3 2011 | -4.1% | — | — | |
| Q3 2010 | -4.1% | — | — | |
| Q4 2010 | -11.1% | — | — | |
| Q2 2011 | -11.1% | — | — | |
| Q2 2010 | -11.1% | — | — | |
| Q1 2010 | +7.7% | — | — |
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