NYSE$DCO

Ducommun Incorporated · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a solid start to 2022 and announced a restructuring initiative.

Ducommun Incorporated reported a 4% increase in revenue to $163.5 million compared to Q1 2021, driven by commercial aerospace recovery and solid defense business performance. Net income increased to $8.1 million, or $0.66 per diluted share. The company's backlog reached a record $943 million, led by growth in commercial aerospace orders. Additionally, a restructuring plan was announced to accelerate strategic goals, anticipating $10 million to $14 million in pre-tax restructuring charges over the next 12 months.

  • Net revenue was $163.5 million, a 4% increase year-over-year.
  • Net income reached $8.1 million, or $0.66 per diluted share.
  • Adjusted EBITDA was $20.1 million, representing 12.3% of revenue.
  • Backlog hit a record high of $943 million, driven by commercial aerospace growth.

Headline financials

Total Revenue

$163M

Previous: $157M+4.0%
EPS (adj)

$0.67

Previous: $0.58+15.5%
Backlog

$943M

No prior period
Capital Expenditures

-$4.83M

Previous: -$4.54M-6.2%
Free Cash Flow

$3.27M

Previous: $2.15M+52.1%
Net Income

$8.1M

Previous: $6.7M+21.0%
Operating Income

$9.12M

Previous: $10.6M-14.0%
Gross Profit

$32.5M

Previous: $33.1M-1.9%
Cash & Equivalents

$19.3M

Previous: $17M+13.5%
Total Assets

$959M

Previous: $826M+16.2%
Stock-Based Comp

$1.59M

Previous: $3.13M-49.2%

Revenue & EPS history

Ducommun · Revenue · Quarterly

$163M

Q1 2022+4%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Ducommun · $163M total across 2 segments · Q1 2022

  • Electronic Systems
    $97.5M-1.7%
  • Structural Systems
    $66M+13.7%

Forward guidance

Ducommun is implementing a restructuring plan to accelerate strategic goals and enhance shareholder value. This plan is expected to result in cost savings and improved performance in the coming years.

Tailwinds

  • Anticipated cost savings of $3 million to $4 million annually beginning in 2023.
  • Improved positioning for stronger performance.
  • Acceleration of growth.
  • Focus on enhancing shareholder value.
  • Continuing recovery in commercial aerospace.

Headwinds

  • Expected pre-tax restructuring charges of $10 million to $14 million over the next 12 months.
  • Approximately $4 million in outlays for employee separation and facility consolidation.
  • $6 million to $10 million in non-cash charges for inventory write-down and asset impairment.
  • Potential risks and uncertainties related to the restructuring plan.
  • Dependence on commercial aerospace recovery and defense business performance.

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 Q1 2022

Historical avgQ1 2022

+1.5%

Avg return

Earnings day

+3.6%

Avg return

5 days after

+3.1%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+36.6%

Q4 2019

Best reaction

-22.6%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.3%+1.8%+17.5%
Q4 2025-3.3%+6.6%-4.7%
Q3 2025-2.5%+6.0%-2.6%
Q1 2025+3.5%+11.4%+25.2%
Q4 2024-6.4%-7.3%-4.7%
Q3 2024+3.7%+3.8%-3.0%
Q2 2024+3.3%+9.9%+2.4%
Q1 2024+3.6%+2.6%+5.1%
Q4 2023-3.2%-3.8%-1.0%
Q3 2023-0.4%+5.1%+9.0%
Q2 2023-8.4%-8.3%-5.8%
Q1 2023-7.3%-6.0%-17.5%
Q4 2022-7.8%-5.7%-13.7%
Q3 2022+7.2%+9.3%+3.2%
Q2 2022-5.9%-2.9%-10.6%
Q1 2022+2.8%-1.5%-9.4%
Q4 2021+4.4%+8.7%+15.2%
Q3 2021+2.4%+7.3%-12.3%
Q2 2021-3.0%-4.8%-9.0%
Q1 2021-3.8%-2.9%-11.6%
Q4 2020-1.6%-0.8%+10.7%
Q3 2020-1.6%+3.0%+47.6%
Q2 2020+4.5%+5.0%+11.4%
Q1 2020-13.5%-16.2%+7.1%
Q4 2019+36.6%+15.1%-54.1%
Q3 2019+17.8%+11.6%+16.1%
Q2 2019+14.0%+8.4%+0.5%
Q1 2019+14.3%+16.7%+11.5%
Q4 2018+10.0%+7.9%+3.5%
Q3 2018+9.0%+8.4%-3.9%
Q2 2018+17.5%+23.4%+28.0%
Q1 2018+4.1%+0.2%+7.4%
Q4 2017+0.4%+4.2%+6.6%
Q3 2017-1.5%-11.0%-16.0%
Q2 2017-2.1%-3.7%-6.7%
Q1 2017+15.3%+7.2%+10.0%
Q4 2016+4.6%-6.2%-8.5%
Q3 2016+14.2%+16.5%+51.5%
Q2 2016+8.4%+20.4%+28.1%
Q1 2016+5.9%
Q4 2015-4.4%
Q3 2015-19.4%
Q2 2015+12.6%
Q1 2015-20.1%
Q4 2014+12.4%
Q3 2014-10.3%
Q2 2014+18.3%
Q1 2014+5.6%
Q4 2013+6.2%
Q3 2013-17.0%
Q2 2013+16.5%
Q1 2013-22.6%
Q4 2012+2.6%
Q3 2012+1.6%
Q2 2012+28.2%
Q1 2011-5.6%
Q1 2012+1.8%
Q4 2011-7.7%
Q4 2009-7.7%
Q3 2011-6.4%
Q3 2010-6.4%
Q2 2011-4.3%
Q2 2010-4.3%
Q4 2010-4.3%
Q1 2010-2.4%

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