NASDAQ$PLPC

Preformed Line Products Company · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Preformed Line Products' financial performance declined due to a slowdown in the communications end market and inventory de-stocking.

Preformed Line Products reported a decrease in net sales and net income for the second quarter of 2024, primarily due to reduced spending in the communications sector. Cost reduction activities helped maintain solid financial results amidst the slowdown.

  • Net sales decreased by 24% to $138.7 million compared to Q2 2023.
  • Net income was $9.4 million, or $1.89 per diluted share, compared to $20.5 million, or $4.08 per diluted share, for the same period last year.
  • Gross profit margin decreased to 31.9%, a 460 basis point decrease from Q2 2023.
  • The decline in net sales is mainly attributed to softness in the communications end market due to higher borrowing costs, a delay in BEAD stimulus funding, and inventory de-stocking.

Headline financials

Total Revenue

$139M

Previous: $182M-23.7%
EPS

$1.89

Previous: $4.08-53.7%
Gross Margin

31.9%

No prior period
Capital Expenditures

-$7.65M

Previous: -$17.2M+55.5%
Free Cash Flow

$1.72M

Previous: $3.3M-47.8%
Net Income

$9.37M

Previous: $20.5M-54.2%
Operating Income

$11.3M

Previous: $28.1M-59.9%
Gross Profit

$44.3M

Previous: $66.3M-33.3%
Total Assets

$573M

Previous: $622M-7.9%
R&D Expense

$5.36M

No prior period
Stock-Based Comp

$934K

Previous: $1.73M-45.9%

Revenue & EPS history

Preformed Line Products · Revenue · Quarterly

$139M

Q2 2024-23.7%vs Q2 2023
Beat estimate in 0 of 1 quarters(0%)
ActualEstimate

Forward guidance

The company anticipates market recovery and focuses on strategic investments and customer service.

Tailwinds

  • Optimistic about market prospects.
  • Continued investment in new product development.
  • Streamlining manufacturing operations.
  • Expanding customer service portfolio.
  • Strong liquidity to capitalize on favorable market conditions.

Headwinds

  • Uncertainty in global business conditions and the economy.
  • Impact of inflation and rising interest rates.
  • Potential labor disruptions.
  • Military conflict and political instability.
  • Lingering effects of COVID-19.

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 2024

Historical avgQ2 2024

-0.1%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+5.3%

Avg return

30 days after

42%

27 / 65 earnings

Positive

+21.1%

Q4 2022

Best reaction

-21.3%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%+6.3%+9.4%
Q4 2025-2.4%+3.7%+18.5%
Q3 2025-6.9%-10.2%-12.6%
Q1 2025+1.4%+2.2%+11.2%
Q4 2024-1.5%+23.4%+13.4%
Q3 2024-3.3%-1.9%+6.9%
Q2 2024-5.0%-10.2%-10.4%
Q1 2024+4.1%+3.6%+11.0%
Q4 2023-3.9%-3.8%-5.3%
Q3 2023-18.5%-14.2%-5.1%
Q2 2023-8.8%-8.2%-5.6%
Q1 2023+15.9%+10.1%+17.6%
Q4 2022+21.1%+32.5%+43.6%
Q3 2022+4.1%+3.9%+16.5%
Q2 2022+16.1%+12.9%+26.3%
Q1 2022-5.1%-2.6%-1.5%
Q4 2021+5.2%+10.7%+15.2%
Q3 2021+2.5%-0.3%-3.8%
Q2 2021-0.5%+0.9%+2.4%
Q1 2021-0.9%+2.8%+11.5%
Q4 2020-13.4%-7.6%-9.7%
Q3 2020+10.7%+8.6%+22.0%
Q2 2020+15.8%+11.4%+3.7%
Q1 2020+0.2%-10.2%-0.1%
Q4 2019-3.9%-7.5%-9.1%
Q3 2019+17.7%+18.0%+31.7%
Q2 2019-6.6%-12.3%-10.7%
Q1 2019-6.3%-7.0%-13.6%
Q4 2018-1.6%-1.0%+0.8%
Q3 2018-6.2%-14.7%-19.3%
Q2 2018-6.9%-6.4%-6.2%
Q1 2018-0.2%-0.5%+12.8%
Q4 2017+6.9%+3.0%-4.1%
Q3 2017-0.3%-2.2%+14.1%
Q2 2017+8.0%+11.4%+6.5%
Q1 2017-9.0%-11.3%-7.2%
Q4 2016-0.3%+3.2%+13.8%
Q3 2016+3.0%+6.9%+32.6%
Q2 2016-7.1%-12.2%-11.7%
Q1 2016-0.4%
Q4 2015+12.6%
Q3 2015-9.0%
Q2 2015+1.6%
Q1 2015-2.7%
Q4 2014-0.2%
Q3 2014-5.8%
Q2 2014+3.9%
Q1 2014+0.3%
Q4 2013+1.3%
Q3 2013-21.3%
Q2 2013-0.7%
Q1 2013-7.2%
Q4 2012-1.7%
Q3 2012+0.8%
Q2 2012-2.5%
Q1 2011+2.9%
Q1 2012-0.2%
Q4 2009+4.8%
Q4 2011+4.8%
Q3 2011-3.3%
Q3 2010-3.3%
Q4 2010+2.5%
Q2 2010+2.5%
Q2 2011+2.5%
Q1 2010-0.6%

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