NYSE$BWXT

BWX Technologies Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Generated record earnings driven by growth in naval nuclear manufacturing business.

BWX Technologies reported a strong first quarter with record revenues of $542 million, a 30% increase compared to the previous year. GAAP net income was $75.5 million, or $0.79 per diluted share. The company maintains a robust consolidated backlog of $5.1 billion and reiterated its 2020 non-GAAP EPS guidance of approximately $2.80.

  • Generated record earnings with 1Q20 EPS of $0.79, up 55% vs. 1Q19.
  • Reported 1Q20 consolidated revenue up 30% vs. 1Q19 to a record of $542 million.
  • Maintained robust consolidated backlog of $5.1 billion.
  • Reiterated 2020 non-GAAP EPS guidance of ~$2.80; updated underlying guidance to incorporate current impacts from COVID-19 through 2Q20.

Headline financials

Total Revenue

$542M

Previous: $416M+30.2%
EPS (adj)

$0.79

Previous: $0.51+54.9%
Operating cash flow

-$6.45M

Previous: -$17.7M+63.6%
Capital expenditures

$64.8M

No prior period
Dividends paid

$18.6M

No prior period
Free Cash Flow

$10.7M

Previous: $4.46M+140.7%
Net Income

$75.5M

Previous: $49M+54.1%
Operating Income

$98.3M

Previous: $63.6M+54.4%
Gross Profit

$150M

Previous: $113M+32.7%
Cash & Equivalents

$77.6M

Previous: $23M+237.9%
Total Assets

$1.97B

Previous: $1.72B+14.6%
Stock-Based Comp

$3.1M

Previous: $2.53M+22.7%

Revenue & EPS history

BWX Technologies · Revenue · Quarterly

$542M

Q1 2020+30.2%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

BWX Technologies · $887M total across 2 segments · Q4 2025

  • Government Operations
    $589M
  • Commercial Operations
    $298M

Forward guidance

BWXT updated its 2020 guidance to reflect the current business conditions related to the COVID-19 pandemic and the expected impact on 2020 results, assuming current conditions will remain in effect through the second quarter 2020.

Tailwinds

  • Reiterated non-GAAP EPS guidance of ~$2.80.
  • Reiterated consolidated revenue growth of ~8%.
  • Reiterated NOG revenue growth of ~9%.
  • NOG operating margin in the “high teens” with upside potential from CAS pension reimbursement.
  • NSG operating income of ~$25 million.

Headwinds

  • Decreased NPG revenue growth from ~5% to down ~1%.
  • Decreased NPG operating margin from ~13% to ~11%.
  • Decreased unallocated corporate expenses from ~$20 million to ~$15 million.
  • Decreased interest expense as a result of amended credit facility and lower borrowing.
  • Other segment operating expense primarily R&D of ~1% of revenue

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 2020

Historical avgQ1 2020

-0.3%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+0.2%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+12.1%

Q4 2023

Best reaction

-23.1%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-5.1%-14.6%
Q4 2025+2.4%+3.8%+3.4%
Q3 2025-7.2%-10.3%-17.4%
Q1 2025-3.7%-3.2%+15.1%
Q4 2024+4.2%+4.1%+1.5%
Q3 2024-4.6%+1.6%+6.5%
Q2 2024-1.2%+3.7%+4.6%
Q1 2024-10.6%-7.6%-6.8%
Q4 2023+12.1%+13.9%+14.2%
Q3 2023+3.5%+2.6%+6.1%
Q2 2023+7.2%+6.4%+7.4%
Q1 2023+2.2%+2.1%-1.5%
Q4 2022+2.5%+2.8%+3.1%
Q3 2022+0.7%+6.7%+4.9%
Q2 2022-1.0%-2.5%-3.8%
Q1 2022-4.4%-3.1%+2.6%
Q4 2021+3.0%+13.1%+25.0%
Q3 2021-6.2%-2.9%-17.5%
Q2 2021-3.9%-6.1%-0.7%
Q1 2021+0.4%-1.4%-5.5%
Q4 2020-1.9%-1.0%+9.2%
Q3 2020+0.8%+0.1%+3.1%
Q2 2020+7.9%+5.2%+4.7%
Q1 2020+4.7%+13.3%+20.0%
Q4 2019-13.4%-21.8%-36.2%
Q3 2019+3.3%+4.5%+2.1%
Q2 2019+10.8%+12.7%+17.3%
Q1 2019-2.7%-1.1%-8.9%
Q4 2018+0.1%-2.4%-9.1%
Q3 2018-23.1%-21.4%-28.8%
Q2 2018-3.9%-6.5%-8.8%
Q1 2018+2.1%+0.4%+1.7%
Q4 2017-2.9%-1.6%-2.0%
Q3 2017-1.6%-0.9%+0.4%
Q2 2017+1.5%+1.3%+1.4%
Q1 2017+0.7%+3.1%-1.2%
Q4 2016+9.5%+12.7%+12.1%
Q3 2016-2.9%-6.5%+0.7%
Q2 2016-0.2%+1.0%+2.8%
Q1 2016+0.9%
Q4 2015+3.6%
Q3 2015+2.0%
Q2 2015+3.9%
Q1 2015-0.4%
Q4 2014+3.7%
Q3 2014+6.1%
Q2 2014-8.1%
Q1 2014+1.6%
Q4 2013-7.1%
Q3 2013+1.0%
Q2 2013+0.5%
Q1 2013-0.5%
Q4 2012+2.6%
Q3 2012-11.1%
Q2 2012+2.3%
Q1 2011+1.7%
Q1 2012+0.7%
Q4 2009-1.7%
Q4 2011-1.7%
Q1 2010-1.7%
Q3 2010+6.6%
Q3 2011+6.6%
Q4 2010-4.1%
Q2 2010-4.1%
Q2 2011-4.1%

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