NASDAQ$UEIC

Universal Electronics Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported financial results, showing increased gross margins and operating income compared to the same period last year, while guiding for record profitability in Q4 2020.

Universal Electronics reported Q3 2020 financial results with GAAP net sales of $153.5 million and a GAAP net income of $6.2 million, or $0.43 per diluted share. The company's adjusted non-GAAP margins, both gross and operating, reached their highest levels in the last ten years. UEI anticipates continued growth and innovation in wireless control technology.

  • GAAP net sales were $153.5 million, compared to $200.7 million in Q3 2019.
  • GAAP gross margins increased to 28.8% from 23.2% in the prior year.
  • GAAP operating income was $10.2 million, up from $6.1 million year-over-year.
  • The board authorized a stock repurchase program for up to 500,000 shares.

Headline financials

Total Revenue

$154M

Previous: $201M-23.5%
EPS (adj)

$0.92

Previous: $1.01-8.9%
Capital Expenditures

-$10.9M

Previous: -$15.9M+31.5%
Free Cash Flow

-$4.7M

Previous: -$13.2M+64.4%
Net Income

$6.17M

Previous: $2.67M+131.1%
Operating Income

$10.2M

Previous: $6.13M+67.2%
Gross Profit

$44.2M

Previous: $46.5M-5.0%
Cash & Equivalents

$67.1M

Previous: $54.7M+22.7%
Total Assets

$509M

Previous: $565M-10.1%
Stock-Based Comp

$2.26M

Previous: $2.53M-10.6%

Revenue & EPS history

Universal Electronics · Revenue · Quarterly

$154M

Q3 2020-23.5%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

For the fourth quarter of 2020, UEI expects GAAP net sales to range between $150 million and $160 million, with GAAP earnings per diluted share expected to range from $0.54 to $0.64. Adjusted Non-GAAP earnings per diluted share are expected to range from $0.93 to $1.03.

Tailwinds

  • GAAP net sales are expected to range between $150 million and $160 million.
  • GAAP earnings per diluted share are expected to range from $0.54 to $0.64.
  • Adjusted Non-GAAP net sales are expected to range between $150 million and $160 million.
  • Adjusted Non-GAAP earnings per diluted share are expected to range from $0.93 to $1.03.
  • Exclusion of $0.39 per share related to excess manufacturing overhead costs, stock-based compensation, amortization of acquired intangibles, changes in contingent consideration relating to acquisitions, litigation costs, foreign currency gains and losses and the related tax impact of these adjustments.

Headwinds

  • GAAP net sales are expected to be between $150 million and $160 million, compared to $174.7 million in Q4 2019.
  • GAAP earnings per diluted share for the fourth quarter of 2020 are expected to range from $0.54 to $0.64, compared to $0.49 in Q4 2019.
  • Adjusted Non-GAAP net sales are expected to range between $150 million and $160 million, compared to $174.8 million in Q4 2019.
  • Adjusted Non-GAAP earnings per diluted share are expected to range from $0.93 to $1.03, compared to $0.90 in Q4 2019.
  • The fourth quarter 2020 Adjusted Non-GAAP earnings per diluted share estimate excludes $0.39 per share related to, among other things, excess manufacturing overhead costs, stock-based compensation, amortization of acquired intangibles, changes in contingent consideration relating to acquisitions, litigation costs, foreign currency gains and losses and the related tax impact of these adjustments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.4%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-3.1%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+31.6%

Q3 2024

Best reaction

-38.8%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%-7.0%-11.6%
Q4 2025-0.7%-1.7%+4.1%
Q3 2025+6.6%-5.7%-2.4%
Q1 2025+4.3%+17.9%+10.3%
Q4 2024-11.6%-12.9%-30.2%
Q3 2024+31.6%+26.7%+38.9%
Q2 2024-14.9%-15.8%-17.2%
Q1 2024+2.6%+18.8%+4.4%
Q4 2023+3.1%-3.6%+9.1%
Q3 2023+10.4%+5.2%-1.1%
Q2 2023-5.8%-7.8%-23.0%
Q1 2023-13.8%-18.8%-18.9%
Q4 2022-32.8%-39.2%-60.7%
Q3 2022+8.4%+6.3%+11.8%
Q2 2022-9.9%-15.9%-26.1%
Q1 2022-6.0%-7.3%-9.1%
Q4 2021-18.1%-14.0%-7.1%
Q3 2021-17.9%-13.1%-15.5%
Q2 2021+7.7%+8.0%+16.4%
Q1 2021-11.7%-16.9%-11.4%
Q4 2020+1.2%+1.6%+0.6%
Q3 2020+13.3%+19.1%+50.9%
Q2 2020-8.9%-10.0%-18.7%
Q1 2020-8.0%-6.2%+24.6%
Q4 2019+13.0%+5.0%-31.2%
Q3 2019+11.4%+10.2%+7.1%
Q2 2019+10.8%+11.5%+6.8%
Q1 2019+11.4%+13.7%+1.1%
Q4 2018+7.2%+16.4%+21.3%
Q3 2018+12.2%+1.3%-5.9%
Q2 2018+24.0%+18.6%+19.2%
Q1 2018-38.8%-38.5%-36.2%
Q4 2017+22.6%+14.4%+12.7%
Q3 2017-16.4%-17.9%-15.5%
Q2 2017-5.9%-7.5%-13.2%
Q1 2017-6.7%-8.4%-2.2%
Q4 2016+14.0%+16.1%+6.7%
Q3 2016-13.0%-7.1%-8.3%
Q2 2016-1.3%-0.2%-0.3%
Q1 2016+0.2%
Q4 2015+4.4%
Q3 2015-5.0%
Q2 2015-6.5%
Q1 2015-7.0%
Q4 2014-11.4%
Q3 2014+5.1%
Q2 2014+10.2%
Q1 2014+9.8%
Q4 2013+10.7%
Q3 2013-5.1%
Q2 2013+10.0%
Q1 2013+12.1%
Q4 2012+1.8%
Q3 2012-0.1%
Q1 2011+0.9%
Q2 2012+0.9%
Q1 2012+1.0%
Q4 2011-1.0%
Q4 2009-1.0%
Q3 2010-1.8%
Q3 2011-1.8%
Q4 2010-9.8%
Q2 2011-9.8%
Q2 2010-9.8%
Q1 2010+4.4%

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