NYSE$DCO

Ducommun Incorporated · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported strong Q4 2022 results with revenue growth and solid backlog.

Ducommun Incorporated reported a strong finish to 2022, with fourth-quarter revenue increasing by 14% to $188.3 million. The company's GAAP net income was $8.1 million, or $0.65 per diluted share, and adjusted net income was $10.6 million, or $0.85 per diluted share. The company ended the year with a strong backlog of approximately $961 million.

  • Revenue increased by 14% to $188.3 million.
  • GAAP net income was $8.1 million, or $0.65 per diluted share.
  • Adjusted net income was $10.6 million, or $0.85 per diluted share.
  • Ended the year with a backlog of $961 million, with commercial aerospace orders up 35% from 2021.

Headline financials

Total Revenue

$188M

Previous: $165M+14.2%
EPS (adj)

$0.85

Previous: $0.79+7.6%
Backlog

$961M

Previous: $905M+6.2%
Capital Expenditures

$5.32M

Previous: $6.07M-12.2%
Free Cash Flow

$26.7M

Previous: $5.64M+373.8%
Net Income

$8.08M

Previous: $111M-92.7%
Operating Income

$9.69M

Previous: $11.8M-18.0%
Gross Profit

$38.6M

Previous: $37.3M+3.6%
Cash & Equivalents

$46.2M

Previous: $76.3M-39.4%
Total Assets

$1.02B

Previous: $979M+4.4%
Stock-Based Comp

$2.84M

Previous: $3.06M-7.3%

Revenue & EPS history

Ducommun · Revenue · Quarterly

$188M

Q4 2022+14.2%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Ducommun · $188M total across 2 segments · Q4 2022

  • Electronic Systems
    $120M+13.2%
  • Structural Systems
    $68.2M+16.0%

Forward guidance

Ducommun anticipates the commercial aerospace market recovery to continue in 2023, with both Boeing and Airbus planning on hiring 10,000 workers or more. The defense business is also expected to remain solid.

Tailwinds

  • Commercial aerospace market recovery expected to continue.
  • Boeing and Airbus planning to hire 10,000+ workers each.
  • Defense business expected to remain solid.
  • Largest business, defense, to again be solid given the current geopolitical environment and off-loading initiatives.
  • Primary markets look to be in excellent shape in 2023 and 2024.

Headwinds

  • Potential delivery delays or program cancellations.
  • Backlog is affected by timing differences in the placement of customer orders.
  • Trends in overall level of backlog may not be indicative of trends in future net revenues.
  • Cyclicality of the company’s end-use markets
  • Dependence upon a selected base of industries and customers

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 Q4 2022

Historical avgQ4 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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