NYSE$BW

Babcock & Wilcox Enterprises Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Announced second quarter 2020 results and launched a strategic organizational and branding initiative.

Babcock & Wilcox Enterprises reported a GAAP loss from continuing operations of $18.1 million for Q2 2020, an improvement of $10.2 million compared to Q2 2019, with consolidated revenues of $135.4 million.

  • Consolidated revenues were $135.4 million; COVID-19 negatively impacted all segments by delaying anticipated projects
  • GAAP consolidated operating loss was $7.7 million; GAAP loss from continuing operations was $18.1 million, a $10.2 million improvement compared to second quarter 2019
  • Consolidated adjusted EBITDA was $1.4 million
  • Company launched B&W Environmental, B&W Renewable, and B&W Thermal brands as part of a strategic, market-focused organizational and re-branding initiative to accelerate growth

Headline financials

Total Revenue

$135M

Previous: $248M-45.4%
EPS (adj)

-$0.26

Previous: -$1.15+77.4%
Adjusted EBITDA

$1.4M

Previous: $8.2M-82.9%
Capital Expenditures

-$1.68M

Previous: -$434K-285.9%
Free Cash Flow

-$19.8M

Previous: -$28.1M+29.5%
Net Income

-$18.1M

Previous: -$27.6M+34.5%
Operating Income

-$7.7M

Previous: -$4.26M-80.9%
Gross Profit

$32.5M

Previous: $44.3M-26.6%
Cash & Equivalents

$36.8M

Previous: $35.2M+4.6%
Total Assets

$578M

Previous: $772M-25.1%

Revenue & EPS history

Babcock & Wilcox · Revenue · Quarterly

$135M

Q2 2020-45.4%vs Q2 2019
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Forward guidance

B&W expects growth from its expanding global pipeline and improved operational execution to drive significant earnings growth throughout 2021 and beyond.

Tailwinds

  • Company is moving forward with its strategy to achieve long-term growth and leverage market trends.
  • Organizational re-alignment and re-branding reflect the mission to provide renewable energy and environmental solutions to customers around the world
  • Expanding global pipeline represents over $5 billion of identified project opportunities that we expect to bid in the next 3 years
  • Expanding sales and business development team in key international markets, including the Middle East, Africa and Asia-Pacific regions
  • Majority of deferred projects to re-mobilize in late 2020 and through 2021

Headwinds

  • COVID-19 has negatively affected anticipated bookings and project timing, pushing projects expected to begin in 2020 into 2021 and beyond
  • COVID-19 has disrupted business operations, trade, commerce, financial and credit markets, and daily life throughout the world.
  • The Company's business has been adversely impacted by the measures taken and restrictions imposed in the locations in which it operates by local governments and others to control the spread of this virus.
  • Expect deferrals and delays of certain projects to affect our performance throughout 2020
  • GAAP operating loss

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-3.9%

Avg return

Earnings day

-1.7%

Avg return

5 days after

+2.3%

Avg return

30 days after

46%

21 / 46 earnings

Positive

+45.8%

Q1 2025

Best reaction

-72.5%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+29.6%+49.9%+0.6%
Q4 2025+45.7%+66.5%+94.1%
Q3 2025+28.5%+84.5%+51.9%
Q1 2025+45.8%+21.9%+72.8%
Q4 2024-31.9%-51.0%-31.4%
Q3 2024-31.2%-32.7%-31.2%
Q2 2024+6.3%-4.5%+2.7%
Q1 2024+10.3%-2.6%+1.7%
Q4 2023-19.5%-6.3%+15.2%
Q3 2023-55.1%-44.0%-28.2%
Q2 2023+4.4%+6.5%+1.2%
Q1 2023-9.6%-7.6%-4.0%
Q4 2022+1.7%-3.3%+11.1%
Q3 2022+1.6%+11.4%+19.7%
Q2 2022-9.7%-2.0%-3.4%
Q1 2022-27.2%-14.0%+2.3%
Q4 2021+11.9%+16.3%+16.5%
Q3 2021+21.4%+31.9%+15.7%
Q2 2021+1.2%-7.2%-14.8%
Q1 2021+5.8%+11.4%+16.6%
Q4 2020+4.0%+9.5%+32.0%
Q3 2020+2.6%+14.2%+74.3%
Q2 2020-8.3%-4.7%-16.3%
Q4 2019-14.2%-26.7%-26.0%
Q3 2019-5.5%-5.9%-34.2%
Q2 2019-1.1%+1.4%-5.2%
Q1 2019-6.7%-14.4%-10.4%
Q4 2018-31.0%-15.6%+22.9%
Q3 2018+6.3%-9.1%-10.6%
Q2 2018-28.1%-27.0%-31.1%
Q1 2018-0.7%+1.1%-10.7%
Q4 2017-13.1%-9.4%-31.3%
Q3 2017+8.5%+8.2%+16.9%
Q2 2017-72.5%-70.5%-71.9%
Q1 2017+12.4%+8.1%+15.4%
Q4 2016-40.3%-39.4%-45.8%
Q3 2016-11.4%-15.9%-1.8%
Q2 2016+3.3%+7.6%+11.7%
Q1 2015-3.9%
Q1 2016-3.9%
Q4 2013-7.9%
Q4 2015-7.9%
Q3 2014-0.8%
Q3 2015-0.8%
Q2 2014+5.3%
Q2 2015+5.3%
Q1 2014

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