NYSE$BWXT

BWX Technologies Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

BWX Technologies reported a strong second quarter with increased revenue and EPS, driven by operational performance and cost control.

BWX Technologies reported a strong second quarter in 2020, with a 7% increase in revenue to $505 million. GAAP EPS grew to $0.67, and non-GAAP EPS reached $0.71. The company has increased its full-year non-GAAP EPS guidance to $2.80 - $2.90.

  • Second quarter revenue increased by 7% year-over-year to $505 million.
  • GAAP net income for the second quarter was $64.3 million, or $0.67 per diluted share.
  • Non-GAAP net income for the second quarter was $67.7 million, or $0.71 per diluted share.
  • Full-year non-GAAP EPS guidance increased to a range of $2.80 – $2.90.

Headline financials

Total Revenue

$505M

Previous: $471M+7.1%
EPS (adj)

$0.71

Previous: $0.62+14.5%
Operating cash flow

$162M

Previous: $64.8M+150.0%
Dividends paid

$18.2M

No prior period
Capital Expenditures

-$115M

Previous: -$75.7M-52.5%
Free Cash Flow

-$51.2M

Previous: -$16.8M-204.5%
Net Income

$64.3M

Previous: $58.9M+9.1%
Operating Income

$82.4M

Previous: $80.5M+2.4%
Gross Profit

$137M

Previous: $133M+2.8%
Cash & Equivalents

$61.6M

Previous: $34.4M+78.8%
Total Assets

$1.97B

Previous: $1.76B+12.2%
Stock-Based Comp

$4.38M

Previous: $3.82M+14.4%

Revenue & EPS history

BWX Technologies · Revenue · Quarterly

$505M

Q2 2020+7.1%vs Q2 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 year-to-date performance and management’s outlook on the remainder of the year. 2020 guidance continues to incorporate business conditions related to the COVID-19 pandemic and assumes that current conditions will remain in effect through the remainder of 2020.

Tailwinds

  • Increased non-GAAP EPS from ~$2.80 to a range of $2.80 – $2.90 (excludes pension and post-retirement benefits mark-to-market)
  • Increased NOG revenue growth to ~10%
  • Consolidated revenue growth of ~8%
  • NPG operating margin of ~11%
  • Non-GAAP effective tax rate of ~23%

Headwinds

  • NPG revenue growth down ~1%
  • Non-GAAP operating income and margin
  • NOG operating margin in the “high teens” with upside potential from CAS pension reimbursement
  • NSG operating income of ~$25 million
  • Unallocated corporate expenses of ~$15 million

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 Q2 2020

Historical avgQ2 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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