NYSE$AIN

Albany International Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Albany International reported strong Q4 2019 results with increased net sales and operating income.

Albany International reported a 2.4% increase in net sales, driven by growth in Engineered Composites. Gross profit and operating income also increased, contributing to a net income of $29.1 million, or $0.90 per share.

  • Net sales increased by 2.4% due to growth in Engineered Composites segment.
  • Gross profit increased by 9.9% driven by increased sales and margin expansion.
  • Operating income increased by 16.5% due to higher gross profit.
  • Net income attributable to the company increased to $29.1 million, or $0.90 per share.

Headline financials

Total Revenue

$258M

Previous: $252M+2.4%
EPS (adj)

$0.97

Previous: $0.74+31.1%
Adjusted EBITDA

$63.9M

Previous: $57.7M+10.8%
Effective Tax Rate

24.8%

Previous: 37.9%-34.6%
Capital Expenditures

$18.5M

Previous: $21M-11.9%
Free Cash Flow

$55.2M

Previous: $50M+10.5%
Net Income

$29.6M

Previous: $14.1M+110.4%
Operating Income

$43.6M

Previous: $37.4M+16.5%
Gross Profit

$96.6M

Previous: $87.9M+9.9%
Cash & Equivalents

$196M

Previous: $198M-1.1%
Total Assets

$1.47B

Previous: $1.42B+4.0%

Revenue & EPS history

Albany · Revenue · Quarterly

$258M

Q4 2019+2.4%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Albany · $258M total across 2 segments · Q4 2019

  • Machine Clothing
    $151M-0.1%
  • Engineered Composites
    $107M+6.1%

Forward guidance

Albany International expects another strong year, with the Machine Clothing segment delivering strong margins and the Engineered Composites segment continuing to deliver strong margins and sales growth, though impacted by Boeing's production pause on the 737 MAX program.

Tailwinds

  • Machine Clothing segment is expected to deliver another good year.
  • Machine Clothing segment is expected to continue to deliver strong margins.
  • Engineered Composites segment is expected to continue to deliver strong margins.
  • Engineered Composites segment is expected to deliver strong sales growth on programs unrelated to the 737 MAX.
  • Company enters 2020 in excellent financial health with strong operations focused on expanding profitability and the long-term growth of our business segments

Headwinds

  • Paper machine clothing market in 2020 expected to be slightly softer.
  • Modest impact due to the disruption to Chinese facilities caused by the recent coronavirus outbreak.
  • Boeing’s production pause on the 737 MAX program will impact the business.
  • Outlook for 2020 takes into account a reduction in demand for the components we produce for the LEAP engine that powers the 737 MAX aircraft.
  • Business will inevitably be impacted by Boeing’s production pause on the 737 MAX program.

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 2019

Historical avgQ4 2019

+0.3%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+3.4%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+19.1%

Q3 2015

Best reaction

-12.5%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+0.8%+11.2%
Q4 2025-1.6%-0.5%-10.0%
Q3 2025-1.0%-16.5%-9.1%
Q1 2025-5.4%-3.2%+0.5%
Q4 2024-6.4%-9.3%-12.0%
Q3 2024-5.2%-1.9%+15.7%
Q2 2024+3.6%+5.5%+2.4%
Q1 2024-9.0%-3.4%-2.7%
Q4 2023+3.3%+2.6%+5.5%
Q3 2023-2.3%-5.1%-0.3%
Q2 2023-0.4%+2.0%-0.7%
Q1 2023-5.2%+0.2%-5.4%
Q4 2022-3.8%-4.7%-17.8%
Q3 2022+1.0%+4.3%+17.2%
Q2 2022+5.3%+12.2%+14.1%
Q1 2022-7.7%-5.9%-1.2%
Q4 2021+0.6%-0.1%-1.9%
Q3 2021+1.8%-0.6%+8.2%
Q2 2021+4.9%+5.8%-3.7%
Q1 2021+2.2%+1.5%-2.6%
Q4 2020-5.0%-2.6%+13.8%
Q3 2020-5.5%+1.3%+35.1%
Q2 2020-5.4%-4.1%+3.8%
Q1 2020-0.6%-0.8%+17.2%
Q4 2019+2.5%+3.2%-19.7%
Q3 2019+1.0%+4.2%+3.1%
Q2 2019+9.1%+6.9%+4.6%
Q1 2019+5.4%+8.4%-5.6%
Q4 2018+5.8%+8.6%+5.0%
Q3 2018+6.4%+7.5%+8.8%
Q2 2018+15.8%+17.3%+19.5%
Q1 2018+4.2%+3.4%+9.5%
Q4 2017+3.3%+0.8%+2.7%
Q3 2017+4.1%+1.9%+12.5%
Q2 2017-5.4%-2.5%+0.2%
Q1 2017-2.1%-1.9%+4.4%
Q4 2016+0.7%+0.0%-5.6%
Q3 2016-3.2%-2.6%+16.6%
Q2 2016-3.1%+1.7%+0.0%
Q1 2016-3.4%
Q4 2015+11.7%
Q3 2015+19.1%
Q2 2015-5.0%
Q1 2015-1.4%
Q4 2014-1.3%
Q3 2014-0.8%
Q2 2014+3.5%
Q1 2014-0.9%
Q4 2013+1.5%
Q3 2013-3.0%
Q2 2013-0.7%
Q1 2013+0.3%
Q4 2012+3.8%
Q3 2012+4.4%
Q2 2012+10.8%
Q1 2012-12.5%
Q1 2009-3.1%
Q2 2009-3.1%
Q3 2009-3.1%
Q2 2011-3.1%
Q4 2009-3.1%
Q4 2011-3.1%
Q3 2010-1.0%
Q3 2011-1.0%
Q2 2010-8.6%
Q1 2010+7.3%
Q4 2010+7.3%
Q1 2011+7.3%

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