NYSE$CMT

Core Molding Technologies Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a decrease in net sales and operating income compared to the prior year second quarter, while maintaining a strong gross margin.

Core Molding Technologies reported a decrease in net sales by 9.2% and operating income decreased compared to the prior year second quarter. However, the company sustained a strong gross margin of 20%.

  • Total net sales decreased by 9.2% compared to the prior year second quarter.
  • Gross margin was 20.0% of net sales, compared to 21.0% in the prior year second quarter.
  • Operating income decreased compared to the prior year second quarter.
  • Net income decreased compared to the prior year second quarter.

Headline financials

Total Revenue

$88.7M

Previous: $97.7M-9.2%
EPS

$0.73

Previous: $0.91-19.8%
Capital Expenditures

-$4.81M

Previous: -$4.51M-6.5%
Free Cash Flow

$1.61M

Previous: $3.43M-52.9%
Net Income

$6.42M

Previous: $7.94M-19.1%
Operating Income

$7.49M

Previous: $10.1M-25.6%
Gross Profit

$17.7M

Previous: $20.6M-13.8%
Cash & Equivalents

$37.8M

Previous: $14.2M+166.8%
Total Assets

$226M

Previous: $214M+5.4%
Stock-Based Comp

$766K

Previous: $756K+1.3%

Revenue & EPS history

Core Molding · Revenue · Quarterly

$88.7M

Q2 2024-9.2%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Core Molding · $15.1M total across 3 segments · Q3 2023

  • Tooling
    $5.83M-37.1%
  • Building products
    $4.82M
  • Industrial and Utilities
    $4.47M

Forward guidance

The company is lowering sales guidance to the bottom of the full-year guidance, down approximately 15%, compared to 2023 sales due to continued softness in customer demand driven by macro-economic conditions, while they continue to evaluate the Company’s fixed cost structure and will adjust costs prudently.

Tailwinds

  • Focus on investing for growth, operational performance and cash flow generation.
  • Opportunity pipeline is a robust $250 million.
  • New business wins total $42 million.
  • Gross margins within full-year goal range of 17% to 19%.
  • Total available liquidity was $87.8 million at the end of the second quarter.

Headwinds

  • Sales declined 15.4%, primarily due to economic headwinds, tough comparisons, and customer inventory rationalization.
  • Second-half of the year gross margin percentages to be lower than first-half gross margin percentages due to normal seasonality and less leverage of fixed costs.
  • Lowering sales guidance to the bottom of our full-year guidance, down approximately 15%, compared to 2023 sales.
  • Continued softness in customer demand driven by macro-economic conditions.
  • Quote-to-cash cycle is 12 to 18 months, and therefore, the benefits of these wins will be realized starting in 2025 and 2026.

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 2024

Historical avgQ2 2024

+1.5%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+3.4%

Avg return

30 days after

59%

38 / 64 earnings

Positive

+34.9%

Q1 2020

Best reaction

-36.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%-1.3%-7.8%
Q4 2025+8.4%+7.0%+28.9%
Q3 2025+2.4%+4.9%+2.2%
Q1 2025-1.7%+1.0%+4.1%
Q4 2024-0.4%+6.1%+11.8%
Q3 2024+7.5%+8.1%+5.2%
Q2 2024-7.5%+3.9%+3.3%
Q1 2024+1.6%+3.8%-10.8%
Q4 2023-0.9%-5.1%-5.5%
Q3 2023-36.7%-33.7%-24.6%
Q2 2023+15.5%+15.6%+13.1%
Q1 2023+7.3%+7.2%+2.8%
Q4 2022+11.2%+9.5%+26.1%
Q3 2022+8.6%+8.3%+5.7%
Q2 2022+5.5%+18.0%+3.4%
Q1 2022+4.1%+2.3%-3.0%
Q4 2021+20.0%+22.8%+25.8%
Q3 2021-13.0%-13.2%-25.6%
Q2 2021+11.4%+8.3%-2.8%
Q1 2021+23.8%+23.7%+12.4%
Q4 2020-7.3%-8.2%-8.3%
Q3 2020+13.3%+10.2%+41.9%
Q2 2020+8.0%+9.8%+32.9%
Q1 2020+34.9%+20.8%+70.3%
Q4 2019+0.5%+0.5%-42.7%
Q3 2019-1.5%+1.7%+1.7%
Q2 2019+13.4%+9.2%+8.7%
Q1 2019-2.0%-0.6%-10.1%
Q4 2018-3.3%-0.5%+1.9%
Q3 2018+0.7%+2.0%+14.5%
Q2 2018-27.4%-30.1%-30.4%
Q1 2018-4.3%-12.0%-9.6%
Q4 2017-0.8%-3.9%-7.6%
Q3 2017-7.9%-9.6%-8.6%
Q2 2017+10.7%+11.1%+5.6%
Q1 2017+3.0%+1.5%+6.3%
Q4 2016-1.7%+0.1%+15.4%
Q3 2016-18.5%-13.2%-7.5%
Q2 2016-16.8%-22.1%-7.9%
Q1 2016+15.6%
Q4 2015-2.8%
Q3 2015-29.3%
Q2 2015+17.3%
Q1 2015+7.2%
Q4 2014+6.1%
Q3 2014+4.6%
Q2 2014+6.5%
Q1 2014+1.3%
Q4 2013-8.2%
Q3 2013+1.7%
Q2 2013-0.8%
Q1 2013-0.6%
Q4 2012-0.1%
Q3 2012-0.8%
Q2 2012+1.0%
Q1 2011-4.0%
Q1 2012+2.5%
Q4 2011+0.9%
Q3 2010+1.0%
Q3 2011+1.0%
Q2 2011+6.5%
Q2 2010+6.5%
Q4 2010+6.5%
Q1 2010-3.0%

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