NYSE$EAF

GrafTech International Ltd. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

GrafTech reported second quarter results with net income of $93 million and Adjusted EBITDA of $151 million.

GrafTech's Q2 2020 net sales were $281 million, with a net income of $93 million, or $0.35 per share. Adjusted EBITDA was $151 million. The company generated $148 million in cash flow from operating activities and ended the quarter with a liquidity position of approximately $435 million.

  • Net sales for the quarter ended June 30, 2020 were $281 million, compared to $480 million in the second quarter of 2019.
  • Net income for the second quarter of 2020 was $93 million, or $0.35 per share, compared to $196 million, or $0.68 per share in the second quarter of 2019.
  • Adjusted EBITDA was $151 million in the second quarter of 2020 compared to $284 million in the second quarter of 2019.
  • Cash flow from operating activities was $148 million in the second quarter of 2020, compared to $202 million in the comparable period of 2019.

Headline financials

Total Revenue

$281M

Previous: $480M-41.6%
EPS (adj)

$0.35

Previous: $0.68-48.5%
Capital Expenditures

-$24.4M

Previous: -$29.2M+16.6%
Free Cash Flow

$68.4M

Previous: $167M-59.1%
Net Income

$92.8M

Previous: $196M-52.8%
Operating Income

$133M

Previous: $267M-50.1%
Gross Profit

$150M

Previous: $283M-47.0%
Cash & Equivalents

$188M

Previous: $205M-8.6%
Total Assets

$1.53B

Previous: $1.73B-11.2%

Revenue & EPS history

GrafTech · Revenue · Quarterly

$281M

Q2 2020-41.6%vs Q2 2019
Beat estimate in 8 of 12 quarters(67%)
ActualEstimate

Forward guidance

The second half of 2020 will continue to be challenging as GrafTech and its customers face macro-economic headwinds. Overall demand and pricing are expected to remain low for the remainder of 2020.

Tailwinds

  • The company has full confidence in the strengths of the Electric Arc Furnace and graphite electrode businesses.
  • The environmental and economic attributes of these industries are key advantages and position them for continued growth over the longer term.
  • GrafTech is well positioned to navigate the challenges of the current environment and the opportunities in the future recovery given its leadership position in the industry.
  • GrafTech has strong cash flows.
  • GrafTech has an advantaged cost position.

Headwinds

  • The second half of 2020 will continue to be challenging as GrafTech and its customers face macro-economic headwinds.
  • The company foresees a measured recovery in the industry when the pandemic eases as customers work through inventory levels that were elevated prior to the onset of the pandemic.
  • Overall demand is expected to remain low for the remainder of 2020.
  • Pricing is expected to remain low for the remainder of 2020.
  • The current market continues to challenge GrafTech's customers including those with LTAs.

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 2020

Historical avgQ2 2020

-4.0%

Avg return

Earnings day

-4.9%

Avg return

5 days after

-3.1%

Avg return

30 days after

39%

13 / 33 earnings

Positive

+14.3%

Q4 2020

Best reaction

-46.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%+11.2%+15.6%
Q4 2025-46.2%-51.7%-62.8%
Q3 2025-1.9%-24.7%-30.0%
Q1 2025+7.8%-3.1%+59.3%
Q4 2024-9.4%-31.5%-22.1%
Q3 2024+3.9%+2.4%-7.2%
Q2 2024-3.5%-8.9%-13.0%
Q1 2024+3.1%+3.7%+10.6%
Q4 2023+7.6%+5.3%+26.5%
Q3 2023-23.6%-28.9%-22.1%
Q2 2023-21.8%-15.7%-31.5%
Q1 2023-9.9%-14.0%-5.7%
Q4 2022-16.2%-17.9%-12.3%
Q3 2022-3.1%-10.5%+7.6%
Q2 2022-13.0%-11.6%-25.6%
Q1 2022-8.9%-13.0%-2.0%
Q4 2021-12.6%-8.0%-13.2%
Q3 2021+12.7%+11.4%+5.6%
Q2 2021-6.6%-0.3%-4.1%
Q1 2021-2.0%-6.2%-2.0%
Q4 2020+14.3%+20.4%+11.8%
Q3 2020-9.3%+0.3%+39.2%
Q2 2020+9.3%+9.3%+1.9%
Q1 2020-14.3%-14.8%+11.5%
Q4 2019-5.6%-5.4%-31.9%
Q3 2019+2.2%+8.6%-3.0%
Q2 2019-1.6%-5.3%+9.0%
Q1 2019+2.2%+6.7%-13.4%
Q4 2018+0.8%+7.6%-5.8%
Q3 2018-0.6%-4.3%-13.6%
Q2 2018+0.4%-2.5%-15.6%
Q4 2017+8.3%+14.0%+18.6%
Q1 2018+8.3%+14.0%+18.6%
Q3 2017
Q2 2017
Q4 2016
Q1 2017
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2009
Q1 2010
Q4 2009
Q3 2009
Q3 2008
Q2 2009
Q4 2008
Q4 2007
Q2 2008

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