NYSE$EAF

GrafTech International Ltd. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

GrafTech's third quarter financial results were reported, showing resilience amidst a challenging environment, with net income of $94 million and Adjusted EBITDA of $153 million.

GrafTech International Ltd. announced third-quarter results with net sales of $287 million, net income of $94 million, and Adjusted EBITDA of $153 million. The company proactively managed through the COVID-19 crisis and saw a measured recovery in global steel markets.

  • Net sales for the quarter were $287 million, compared to $421 million in the third quarter of 2019, reflecting reduced sales volumes due to COVID-19 and customer inventory destocking.
  • Net income for the third quarter was $94 million, or $0.35 per share, compared to $176 million, or $0.61 per share in the third quarter of 2019.
  • Adjusted EBITDA was $153 million in the third quarter of 2020, compared to $245 million in the third quarter of 2019.
  • The company ended the quarter with a strong liquidity position of approximately $406 million, including $159 million in cash and cash equivalents.

Headline financials

Total Revenue

$287M

Previous: $421M-31.8%
EPS (adj)

$0.35

Previous: $0.61-42.6%
Capital Expenditures

-$30.7M

Previous: -$44.1M+30.3%
Free Cash Flow

$63.5M

Previous: $132M-51.8%
Net Income

$94.2M

Previous: $176M-46.4%
Operating Income

$135M

Previous: $226M-40.1%
Gross Profit

$155M

Previous: $242M-36.0%
Cash & Equivalents

$159M

Previous: $381M-58.3%
Total Assets

$1.47B

Previous: $1.83B-19.6%

Revenue & EPS history

GrafTech · Revenue · Quarterly

$287M

Q3 2020-31.8%vs Q3 2019
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Forward guidance

For the remainder of 2020, GrafTech anticipates full year LTA sales volumes to be above the midpoint of the expected range of 100 thousand - 115 thousand MT and LTA revenue between $1,000 million and $1,080 million.

Tailwinds

  • Full year LTA sales volumes are expected to be above the midpoint of the range of 100 thousand - 115 thousand MT.
  • Full year LTA revenue is expected to be between $1,000 million and $1,080 million in 2020.
  • Estimated LTA volume for 2021 is projected to be 98-108 thousand MT.
  • Estimated LTA volume for 2022 is projected to be 95-105 thousand MT.
  • Estimated LTA volume for 2023 through 2024 is projected to be 35-45 thousand MT.

Headwinds

  • Some customers are struggling to take their committed volumes.
  • This is causing some non-performance and disputes, including a few arbitrations.
  • The company will continue to work to preserve its rights under the LTAs.
  • The general spot price of graphite electrodes continued to trend lower during the third quarter.
  • The current market conditions are challenging for 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 Q3 2020

Historical avgQ3 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
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Q4 2007
Q2 2008

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