NYSE$APG
APi Group Corporation · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
APi Group's financial results for Q3 2020 were reported, showing a revenue decline due to divestitures and COVID-19 impacts, but improved gross and operating income.
APi Group reported a decline in net revenues for Q3 2020, primarily driven by divestitures and COVID-19 impacts. However, the company saw increases in gross margin, operating income, and net income. The company is raising guidance for 2020 adjusted net revenues, adjusted EBITDA, and adjusted EPS.
- Reported net revenues declined by 14.3% to $958 million compared to the prior year period.
- Reported gross margin was 23.2%, a 233 basis point increase compared to the prior year.
- Reported operating income was $62 million, a $49 million increase from the prior year.
- Adjusted EBITDA was $115 million, relatively consistent with the prior year adjusted EBITDA margin.
Headline financials
Revenue & EPS history
APi Group · Revenue · Quarterly
$958M
Revenue by segment
APi Group · $804M total across 2 segments · Q3 2020
- Safety Services$404M—50.2%
- Specialty Services$400M—49.8%
Forward guidance
The Company announced it is increasing guidance for 2020 and believes that adjusted net revenues for the year will now range between $3,475 to $3,525 million, up from $3.4 to $3.5 billion, adjusted EBITDA will range between $360 to $370 million, up from $345 to $355 million, and adjusted EPS will range between $1.11 to $1.15, up from $0.94 to $1.00, based on an adjusted diluted share count of 176 million.
Tailwinds
- Adjusted net revenues for the year will now range between $3,475 to $3,525 million.
- Adjusted EBITDA will range between $360 to $370 million.
- Adjusted EPS will range between $1.11 to $1.15.
- Remain focused on pre-COVID-19 objectives.
- Excited about the opportunities that lie ahead for the base business as well as the outlook for incremental opportunistic M&A activity.
Headwinds
- Market conditions as a result of COVID-19 remain uncertain.
- Visibility is still somewhat limited.
- Difficult macro environment.
- Realistic about the challenges COVID-19 creates.
- Impacts of the COVID-19 pandemic on the future operating and financial performance of the Company and its customers.
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 Q3 2020
+0.4%
Avg return
Earnings day
+1.8%
Avg return
5 days after
+3.9%
Avg return
30 days after
44%
11 / 25 earnings
Positive
+10.7%
Q3 2022
Best reaction
-9.4%
Q2 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -6.0% | -6.3% | -15.7% | |
| Q4 2025 | -0.4% | +0.5% | -7.3% | |
| Q3 2025 | +1.9% | +2.8% | +14.8% | |
| Q1 2025 | +6.6% | +12.3% | +23.4% | |
| Q4 2024 | -0.3% | +4.7% | -0.9% | |
| Q3 2024 | +6.4% | +5.7% | +13.8% | |
| Q2 2024 | -9.4% | -12.4% | -6.2% | |
| Q1 2024 | -2.3% | -0.0% | -5.8% | |
| Q4 2023 | -1.9% | +7.5% | +9.9% | |
| Q3 2023 | +7.2% | +4.2% | +20.5% | |
| Q2 2023 | -2.7% | -1.6% | -1.7% | |
| Q1 2023 | +1.1% | -0.8% | +5.4% | |
| Q4 2022 | +1.0% | +7.0% | -5.1% | |
| Q3 2022 | +10.7% | +12.7% | +23.0% | |
| Q2 2022 | -5.4% | -8.5% | -16.9% | |
| Q1 2022 | -8.6% | -14.6% | -5.7% | |
| Q4 2021 | -4.1% | +6.0% | +5.0% | |
| Q3 2021 | +9.3% | +10.6% | +6.2% | |
| Q2 2021 | -2.7% | -0.2% | -4.0% | |
| Q1 2021 | -6.7% | -6.9% | +7.2% | |
| Q4 2020 | -2.9% | +1.5% | +11.5% | |
| Q3 2020 | +2.5% | +1.2% | +15.9% | |
| Q2 2020 | -1.7% | +3.3% | -3.7% | |
| Q1 2020 | +9.1% | +7.6% | +7.1% | |
| Q4 2019 | +9.1% | +7.6% | +7.1% | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — |
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