NYSE$AXTA

Axalta Coating Systems · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Axalta's Q1 2021 earnings were released, showcasing strong adjusted earnings driven by demand recovery and strong execution despite macro headwinds.

Axalta Coating Systems reported an 8.1% year-over-year increase in net sales to $1,063.6 million for Q1 2021, driven by positive contributions from all end-markets. Adjusted EBIT increased 37.8% to $182.8 million, a record for first quarter results. Diluted EPS was $0.06, while adjusted diluted EPS reached $0.50. The company acquired Anhui Shengran Insulating Materials Co. Ltd. and repurchased $63.6 million of stock during the quarter.

  • Q1 2021 net sales increased 8.1% year-over-year to $1,063.6 million with positive contributions from all end-markets
  • Adjusted EBIT increased 37.8% to $182.8 million, a record for first quarter results
  • Diluted EPS of $0.06 versus $0.22 in Q1 2020; Adjusted diluted EPS of $0.50 versus $0.31 in Q1 2020
  • Repurchased $63.6 million of stock during Q1 2021 at an average price of $27.94

Headline financials

Total Revenue

$1.06B

Previous: $984M+8.1%
EPS (adj)

$0.50

Previous: $0.31+61.3%
Capital Expenditures

-$31.8M

Previous: -$22.7M-40.1%
Free Cash Flow

-$16.6M

Previous: $29.5M-156.3%
Net Income

$15.2M

Previous: $52.2M-70.9%
Operating Income

$52.6M

Previous: $65.1M-19.2%
Gross Profit

$379M

Previous: $337M+12.6%
Cash & Equivalents

$1.27B

Previous: $657M+92.8%
Total Assets

$7.02B

Previous: $6.39B+9.9%
Stock-Based Comp

$3.6M

Previous: $5.1M-29.4%

Revenue & EPS history

Axalta · Revenue · Quarterly

$1.06B

Q1 2021+8.1%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Axalta · $1.31B total across 2 segments · Q3 2023

  • Performance Coatings
    $856M
  • Mobility Coatings
    $453M

Forward guidance

Axalta provided full year 2021 financial guidance with net sales expected to increase by approximately 20-22%, including benefits from foreign exchange and M&A. Adjusted EBIT is projected to be between $715-755 million, and adjusted diluted EPS is expected to be $1.95 - 2.10. Free cash flow is estimated at $455-495 million, inclusive of $180 million in capital expenditures.

Tailwinds

  • Steady demand improvement sequentially in Refinish expected in the coming quarters.
  • Largely stable and growing net sales from other businesses during the balance of the year.
  • Anticipate ongoing deployment of capital to both M&A as well as share repurchases during the rest of 2021.
  • Expect to work hard to pass on most of the input inflation through price increases.
  • Board recently approved a $625 million increase in share repurchase program.

Headwinds

  • Some delay in sales from Q2 is expected in Mobility due to supply chain disruption and customer component shortages.
  • Rising input inflation effects beginning in the second quarter.
  • Some headwind from lower year-over-year temporary cost savings.
  • Semiconductor chip shortage impact on Light Vehicle to continue throughout Q2.
  • Constrained supply chain impact persists in early Q2 on Industrial volumes

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 Q1 2021

Historical avgQ1 2021

+1.2%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.7%

Avg return

30 days after

60%

29 / 48 earnings

Positive

+14.1%

Q3 2017

Best reaction

-11.1%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.8%-3.7%+9.1%
Q4 2025+0.6%-0.2%-18.6%
Q3 2025+2.3%-2.0%+2.4%
Q1 2025-4.7%-1.7%-7.7%
Q4 2024+8.3%+6.0%+0.9%
Q3 2024+7.1%+7.5%+14.3%
Q2 2024-1.2%-4.5%+2.4%
Q1 2024+10.8%+12.8%+13.2%
Q4 2023-3.7%-5.8%+1.8%
Q3 2023+10.6%+11.9%+22.7%
Q2 2023-7.8%-9.5%-11.6%
Q1 2023-5.3%-4.0%-5.0%
Q4 2022+4.5%+7.3%+5.6%
Q3 2022+1.1%+1.2%+13.6%
Q2 2022-5.4%-3.0%-0.2%
Q1 2022+5.5%+2.0%+4.0%
Q4 2021+0.7%-7.5%-12.6%
Q3 2021-3.2%-4.6%-0.4%
Q2 2021+4.3%+3.9%+7.8%
Q1 2021-0.2%-1.9%-3.0%
Q4 2020+1.7%+6.8%+8.1%
Q3 2020+4.3%+2.4%+10.1%
Q2 2020-3.4%-3.0%+5.6%
Q1 2020-3.6%+2.5%+28.1%
Q4 2019+2.5%+5.8%-11.3%
Q3 2019+3.0%+3.9%-1.9%
Q2 2019+2.3%+0.4%-11.4%
Q1 2019-3.3%-1.9%-11.5%
Q4 2018+0.3%+1.0%+5.6%
Q3 2018-0.6%-4.0%-1.1%
Q2 2018+1.7%+1.1%+0.6%
Q1 2018+3.5%+4.0%+9.1%
Q4 2017+1.5%+2.5%+9.0%
Q3 2017+14.1%+14.4%+24.6%
Q2 2017-11.1%-10.5%-7.2%
Q1 2017-0.7%-1.8%-1.4%
Q4 2016+0.3%+1.0%+6.4%
Q3 2016-1.3%-1.0%+4.7%
Q2 2016+1.4%-0.1%-1.2%
Q1 2016-4.2%
Q4 2015+7.8%
Q3 2015-0.2%
Q2 2015-3.3%
Q2 2014-3.3%
Q1 2014+4.2%
Q4 2014+4.2%
Q1 2015+4.8%
Q3 2014+3.9%
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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