NYSE$DCO

Ducommun Incorporated · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported double-digit revenue growth driven by strong commercial aerospace demand and steady defense business performance. The BLR Aerospace acquisition was completed after the quarter ended.

Ducommun Incorporated reported a strong start to 2023 with double-digit revenue growth, led by commercial aerospace demand and defense business. Revenue reached $181.2 million, up 11% organically. Net income was $5.2 million, or $0.42 per diluted share, while adjusted net income was $7.9 million, or $0.63 per diluted share. The company completed the acquisition of BLR Aerospace after the quarter ended.

  • Net revenue increased by 11% to $181.2 million, all organic.
  • Net income was $5.2 million, or $0.42 per diluted share.
  • Adjusted net income reached $7.9 million, or $0.63 per diluted share.
  • Adjusted EBITDA was $23.1 million, representing 12.7% of revenue.

Headline financials

Total Revenue

$181M

Previous: $163M+10.8%
EPS (adj)

$0.63

Previous: $0.67-6.0%
Capital Expenditures

-$5.36M

Previous: -$4.83M-11.1%
Free Cash Flow

-$131K

Previous: $3.27M-104.0%
Net Income

$5.23M

Previous: $8.1M-35.4%
Operating Income

$6.37M

Previous: $9.12M-30.2%
Gross Profit

$36.8M

Previous: $32.5M+13.2%
Cash & Equivalents

$17.1M

Previous: $19.3M-11.1%
Total Assets

$1.01B

Previous: $959M+4.9%
Stock-Based Comp

$3.08M

Previous: $1.59M+93.8%

Revenue & EPS history

Ducommun · Revenue · Quarterly

$181M

Q1 2023+10.8%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Ducommun · $181M total across 2 segments · Q1 2023

  • Electronic Systems
    $106M+8.4%
  • Structural Systems
    $75.6M+14.5%

Forward guidance

This press release and any attachments include “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, any statements about the Company's expectations relating to the commercial aerospace recovery in 2023 and 2024, and the BLR Aerospace acquisition strengthening the Company's engineered products portfolio and adding to its aftermarket revenues.

Tailwinds

  • Company expects commercial aerospace recovery in 2023 and 2024
  • BLR Aerospace acquisition strengthening the Company's engineered products portfolio
  • BLR Aerospace acquisition adding to its aftermarket revenues

Headwinds

  • The Company’s end-use markets are cyclical
  • The Company depends upon a selected base of industries and customers
  • A significant portion of the Company’s business depends upon U.S. Government defense spending
  • The Company is subject to extensive regulation and audit by the Defense Contract Audit Agency
  • Contracts with some of the Company’s customers contain provisions which give the its customers a variety of rights that are unfavorable to the Company

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 2023

Historical avgQ1 2023

+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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