NYSE$CW

Curtiss-Wright Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Curtiss-Wright reported solid second quarter results with sales in line with expectations and operating margin expansion of 50 basis points. Adjusted diluted EPS exceeded expectations, and strong order activity led to a book-to-bill of 1.27.

Curtiss-Wright's Q2 2022 results showed sales of $609 million, an operating income of $98 million, and EPS of $1.83. The company experienced strong order activity, with new orders up 13% year over year, resulting in a book-to-bill ratio of 1.27.

  • Reported sales of $609 million, operating income of $98 million, operating margin of 16.1%, and diluted earnings per share (EPS) of $1.83.
  • Adjusted operating margin of 16.1%, up 50 basis points.
  • New orders of $776 million, up 13%, reflecting strong Aerospace & Defense (A&D) market demand, and book-to-bill of 1.27.
  • Share repurchases of approximately $12 million.

Headline financials

Total Revenue

$609M

Previous: $621M-2.0%
EPS (adj)

$1.83

Previous: $1.56+17.3%
Operating Margin

16.1%

Previous: 15.2%+5.9%
Adjusted Operating Margin

16.1%

No prior period
New Orders

$776M

No prior period
Book-to-Bill Ratio

1.27

No prior period
Share Repurchase

$12M

No prior period
Capital Expenditures

-$19.5M

Previous: -$17.8M-9.7%
Free Cash Flow

$51.4M

Previous: $43.6M+17.7%
Net Income

$70.9M

Previous: $61.4M+15.4%
Operating Income

$98.1M

Previous: $94.6M+3.7%
Gross Profit

$229M

Previous: $225M+1.7%
Cash & Equivalents

$171M

Previous: $198M-13.2%
Total Assets

$4.4B

Previous: $4.08B+7.8%
Stock-Based Comp

$3.77M

Previous: $3.4M+11.0%

Revenue & EPS history

Curtiss-Wright · Revenue · Quarterly

$609M

Q2 2022-2%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Curtiss-Wright · $610M total across 3 segments · Q2 2022

  • Naval & Power
    $251M
  • Aerospace & Industrial
    $209M
  • Defense Electronics
    $150M

Forward guidance

The company raised its full-year 2022 guidance for total sales growth to a new range of 4% to 6% to reflect the contribution of the recently completed SAA acquisition, and we continue to anticipate solid organic growth of 3% to 5% in our A&D and Commercial markets. We also expect continued operating margin expansion and double-digit Adjusted diluted EPS growth of 10% to 13%, as we successfully execute on our Pivot to Growth strategy to drive long-term shareholder value.

Tailwinds

  • Updated full-year 2022 guidance to include the acquisition of the Safran aerospace arresting systems business (SAA).
  • Sales increased to new range of 4% to 6% growth (previously 3% to 5%).
  • Adjusted operating income increased to new range of 5% to 7% growth (previously 3% to 6%) to reflect organic improvements and the contribution from SAA.
  • Maintained Adjusted operating margin range of 17.1% to 17.3%, up 10 to 30 basis points compared with the prior year.
  • Adjusted diluted EPS increased by $0.05 to new range of $8.10 to $8.30, up 10% to 13%.

Headwinds

  • Near-term headwinds from ongoing supply chain disruption continue to impact the timing of revenue within our defense markets.
  • Total A&D market sales decreased 3%.
  • Defense Electronics operating margin decreased 250 bps.
  • Reported free cash flow decreased $43 million.
  • Lower aerospace defense market revenue principally reflected reduced sales of actuation and sensors products on various fighter jet programs

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 2022

Historical avgQ2 2022

+0.6%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+4.1%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+8.9%

Q2 2020

Best reaction

-8.3%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%+3.9%+1.3%
Q4 2025+5.8%+8.5%+3.4%
Q3 2025-1.4%-1.7%-6.9%
Q1 2025+4.6%+9.1%+25.0%
Q4 2024-1.2%-4.8%-5.6%
Q3 2024-2.6%-1.1%+5.5%
Q2 2024+6.7%+11.2%+9.4%
Q1 2024+3.8%+8.0%+11.6%
Q4 2023+3.3%+2.1%+6.1%
Q3 2023+2.8%+4.4%+10.2%
Q2 2023+4.0%+8.8%+9.5%
Q1 2023-4.8%-4.8%-1.9%
Q4 2022+2.3%+1.8%-4.1%
Q3 2022-0.3%+3.7%+7.5%
Q2 2022+3.3%+2.6%+0.3%
Q1 2022-4.5%-4.6%-0.7%
Q4 2021-0.8%+8.7%+15.1%
Q3 2021+2.1%+4.8%+1.0%
Q2 2021+0.3%+1.7%+1.5%
Q1 2021+1.2%+0.7%-2.0%
Q4 2020-4.4%-2.3%+0.7%
Q3 2020-3.9%+2.5%+37.5%
Q2 2020+8.9%+15.6%+17.3%
Q1 2020-6.3%-2.4%+15.0%
Q4 2019-7.8%-5.4%-29.8%
Q3 2019+4.0%+7.3%+5.6%
Q2 2019-3.0%-7.3%-4.1%
Q1 2019+0.3%-3.5%+4.2%
Q4 2018+2.2%+0.8%-7.0%
Q3 2018+1.9%+2.9%+1.0%
Q2 2018+5.3%+3.5%+5.9%
Q1 2018-1.2%-0.1%+1.8%
Q4 2017+4.7%+6.1%+3.1%
Q3 2017+0.7%+2.7%+5.9%
Q2 2017+0.0%-0.8%-1.4%
Q1 2017-4.8%-6.2%-3.5%
Q4 2016-4.3%-2.9%-4.5%
Q3 2016+4.5%+5.7%+20.8%
Q2 2016+1.8%+2.5%+3.8%
Q1 2016+4.1%
Q4 2015+5.5%
Q3 2015+2.2%
Q2 2015+1.2%
Q1 2015-3.3%
Q4 2014-1.9%
Q3 2014+0.6%
Q2 2014+2.6%
Q1 2014+7.6%
Q4 2013+0.2%
Q3 2013-0.7%
Q2 2013+7.9%
Q1 2013-0.6%
Q4 2012-3.8%
Q3 2012-1.8%
Q2 2012+5.3%
Q1 2012-0.8%
Q4 2011+0.3%
Q3 2011-0.8%
Q2 2011-8.3%
Q1 2010+1.1%
Q1 2011+1.7%
Q4 2008+2.4%
Q4 2010+2.4%
Q3 2009-0.3%
Q3 2010-0.3%
Q4 2009-0.7%
Q2 2010-0.7%
Q2 2009-0.7%

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