NYSE$AXTA

Axalta Coating Systems · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Axalta's Q3 2022 earnings were released, showing results within the guidance range, driven by strong pricing and volume recovery, which offset regional headwinds and inflationary pressures.

Axalta Coating Systems reported a 13.8% increase in net sales year-over-year, driven by strong pricing and volume growth. The company's earnings were within the stated guidance range, despite currency and inflationary headwinds. Price increases offset variable cost inflation for the first time since mid-2021.

  • Net sales increased 13.8% year-over-year, with a 20.1% increase excluding foreign exchange impacts.
  • Price-mix growth was 9.7%, with contributions from every end-market and a sequential increase of 2.5%.
  • Volume increased 8.8%, driven by market recovery in Refinish and Mobility.
  • Diluted EPS was $0.28, while adjusted diluted EPS was $0.39, flat compared to Q3 2021.

Headline financials

Total Revenue

$1.24B

Previous: $1.09B+13.8%
EPS (adj)

$0.39

Previous: $0.39+0.0%
Capital Expenditures

-$108M

Previous: -$98.7M-8.9%
Free Cash Flow

-$45.1M

Previous: -$29.6M-52.4%
Net Income

$62.4M

Previous: $69.1M-9.7%
Operating Income

$124M

Previous: $125M-1.0%
Gross Profit

$362M

Previous: $343M+5.5%
Cash & Equivalents

$517M

Previous: $628M-17.6%
Total Assets

$6.82B

Previous: $7.23B-5.7%
Stock-Based Comp

$5M

Previous: $3.9M+28.2%

Revenue & EPS history

Axalta · Revenue · Quarterly

$1.24B

Q3 2022+13.8%vs Q3 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Axalta anticipates net sales growth of 6-8% in Q4 2022, including a negative 7% foreign currency impact. Adjusted EBIT is expected to be $120-145 million, with adjusted diluted EPS of $0.31-0.39.

Tailwinds

  • Anticipate mid single-digit volume growth
  • Expect nearly double-digit price-mix growth
  • Resiliency of Refinish end-market
  • Deferred demand in both Commercial Vehicle and Light Vehicle
  • Company-wide pricing momentum

Headwinds

  • Approximately (7%) foreign currency impact on net sales
  • Expect raw material inflation in the high-teens versus Q4 2021
  • Flat-to-down modestly raw material inflation vs. Q3 2022
  • Slower regional economic activity in select geographies
  • Substantial FX headwinds and minimal change in the sequential quarter-over-quarter cost environment

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 2022

Historical avgQ3 2022

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro