NYSE$AXTA

Axalta Coating Systems · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Axalta's Q3 2021 financial results were released, demonstrating strong financial performance and operating execution despite persistent inflation and supply chain challenges, with net sales increasing by 6.0% year-over-year and earnings exceeding July guidance.

Axalta Coating Systems Ltd. announced its Q3 2021 financial results, with net sales increasing by 6.0% year-over-year. The company faced headwinds from cost inflation and supply chain constraints, particularly in Mobility Coatings, but strong performance in Performance Coatings helped offset these challenges. Axalta completed the acquisition of U-POL during the quarter.

  • Net sales increased 6.0% year-over-year, driven by substantial growth in Performance Coatings.
  • Income from operations was $124.7 million, with an adjusted EBIT of $146.0 million.
  • Diluted EPS was $0.30, and adjusted diluted EPS was $0.39.
  • Completed share repurchases of $90.1 million during Q3 and closed the acquisition of U-POL on September 15, 2021.

Headline financials

Total Revenue

$1.09B

Previous: $1.03B+6.0%
EPS (adj)

$0.39

Previous: $0.59-33.9%
Capital Expenditures

-$98.7M

Previous: -$56.2M-75.6%
Free Cash Flow

-$29.6M

Previous: $26.3M-212.5%
Net Income

$69.1M

Previous: $82.5M-16.2%
Operating Income

$125M

Previous: $142M-12.0%
Gross Profit

$343M

Previous: $393M-12.6%
Cash & Equivalents

$628M

Previous: $1.34B-53.2%
Total Assets

$7.23B

Previous: $7.04B+2.8%
Stock-Based Comp

$3.9M

Previous: $4.7M-17.0%

Revenue & EPS history

Axalta · Revenue · Quarterly

$1.09B

Q3 2021+6%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Axalta anticipates supportive demand and year-over-year growth within Performance Coatings, coupled with incremental pricing realization. In Mobility Coatings, Light Vehicle customer production constraints will remain fairly constant during Q4, resulting in broadly similar sequential volume and operating profit outcomes. The semiconductor chip shortage could continue through 2022 and inflation of around mid-teens for the full year is expected.

Tailwinds

  • Supportive demand and year-over-year growth within Performance Coatings
  • Incremental pricing realization expected
  • Active M&A pipeline
  • Anticipate further share repurchase activity for the balance of the year
  • Expect 2021 global light vehicle production to be relatively flat versus 2020

Headwinds

  • Light Vehicle customer production constraints will remain fairly constant during Q4
  • Mobility Coatings will have broadly similar sequential volume and operating profit outcomes
  • Semiconductor chip shortage could continue through 2022
  • Expect inflation of around mid-teens for the full year
  • Global supply chain constraints have persisted

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 2021

Historical avgQ3 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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