NYSE$AXTA

Axalta Coating Systems · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Axalta released fourth quarter and full year 2021 results.

Axalta Coating Systems reported a net sales increase of 5.8% year-over-year, driven by Performance Coatings growth, offset by OEM production constraints in Mobility Coatings. The company managed through cost inflation and supply chain headwinds, implementing pricing and cost actions to offset these challenges.

  • Net sales increased by 5.8% year-over-year, reaching $1,137.2 million.
  • Income from operations was $94.7 million, compared to $163.2 million in Q4 2020.
  • Diluted EPS was $0.23, versus $0.30 in Q4 2020.
  • Cash flow from operations reached $268.6 million, slightly below the $278.4 million reported in Q4 2020.

Headline financials

Total Revenue

$1.14B

Previous: $1.08B+5.8%
EPS (adj)

$0.30

Previous: $0.58-48.3%
Capital Expenditures

$22.9M

Previous: $25.9M-11.6%
Free Cash Flow

$249M

Previous: $253M-1.2%
Net Income

$53.4M

Previous: $69.7M-23.4%
Operating Income

$94.7M

Previous: $163M-42.0%
Gross Profit

$333M

Previous: $397M-16.2%
Cash & Equivalents

$841M

Previous: $1.36B-38.2%
Total Assets

$7.22B

Previous: $7.16B+0.8%
Stock-Based Comp

$3.2M

Previous: -$800K+500.0%

Revenue & EPS history

Axalta · Revenue · Quarterly

$1.14B

Q4 2021+5.8%vs Q4 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 continued solid end-market demand and potential stabilized raw material cost inflation after the first quarter of 2022.

Tailwinds

  • Continued Refinish recovery
  • Continued robust organic growth within Industrial Coatings
  • Global auto production expected to improve
  • Mobility Coatings growth solidly ahead of global production levels
  • Price-mix anticipated to offset cumulative raw material inflation within 2022

Headwinds

  • Modest FX headwinds expected driven largely by the Euro and Real
  • Raw material inflation expected at low double digits
  • Peak inflation is expected to occur in Q1 2022
  • Continued inflationary pressure which is expected to moderate in 2H 2022
  • Expected raw material inflation of ~25-27% versus Q1 2021

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 2021

Historical avgQ4 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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