NYSE$ESAB

ESAB Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

ESAB Corporation's Q1 2023 financial performance was marked by sales growth and increased profitability.

ESAB Corporation reported a 6% increase in sales, driven by a 7% core organic growth in Q1 2023. The company's net income was $33 million, with core adjusted EBITDA rising by 12% to $113 million. ESAB raised its full-year 2023 outlook, expecting continued growth and profitability.

  • Sales increased by 6% with a core organic growth of 7%.
  • Net income from continuing operations attributable to ESAB was $33 million.
  • Core adjusted EBITDA increased by 12% to $113 million, with margins expanding by 80 basis points to 17.4%.
  • Full year 2023 outlook was raised due to strong Q1 performance and resilient end markets.

Headline financials

Total Revenue

$684M

Previous: $648M+5.6%
EPS (adj)

$1.10

Previous: $1.17-6.0%
Total Core Sales Growth

7.2%

Previous: 18.0%-60.0%
Capital Expenditures

-$7.71M

Previous: -$5.9M-30.6%
Free Cash Flow

$24.2M

Previous: $49.5M-51.2%
Net Income

$31.9M

Previous: $55.4M-42.5%
Operating Income

$90.7M

Previous: $83.6M+8.4%
Gross Profit

$247M

Previous: $224M+10.3%
Cash & Equivalents

$82.1M

Previous: $56.6M+44.9%
Total Assets

$3.85B

Previous: $3.78B+1.8%
Stock-Based Comp

$2.99M

Previous: $1.73M+73.3%

Revenue & EPS history

ESAB · Revenue · Quarterly

$684M

Q1 2023+5.6%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

ESAB raised its full year 2023 outlook and expects core organic sales growth of 3.5% to 5.5%, total core sales growth of 4.0% to 6.0%, core adjusted EBITDA of $430 to $450 million, and core adjusted EPS of $3.85 to $4.05.

Tailwinds

  • Core organic sales growth expected between 3.5% and 5.5%.
  • Total core sales growth projected to be between 4.0% and 6.0%.
  • Core adjusted EBITDA anticipated in the range of $430 to $450 million.
  • Core adjusted EPS expected to be between $3.85 and $4.05.
  • Previous guidance was raised.

Headwinds

  • Macroeconomic conditions
  • Supply chain disruptions
  • War in Ukraine
  • Geopolitical tensions
  • Fluctuations in foreign exchange rates

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.6%

Avg return

Earnings day

+4.0%

Avg return

5 days after

+3.6%

Avg return

30 days after

52%

11 / 21 earnings

Positive

+14.2%

Q3 2023

Best reaction

-5.7%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-7.3%-13.4%
Q4 2025-1.5%-4.5%-27.9%
Q3 2025-5.7%-5.0%-7.3%
Q1 2025-1.6%+1.8%+2.4%
Q4 2024-4.0%-1.3%-4.9%
Q3 2024+12.6%+10.8%+15.1%
Q2 2024-5.5%-5.3%+6.9%
Q1 2024-2.2%+1.6%-2.9%
Q4 2023+2.0%+2.0%+13.9%
Q3 2023+14.2%+18.5%+24.9%
Q2 2023+4.4%+3.6%+5.1%
Q1 2023+3.3%+4.5%+4.5%
Q4 2022+3.1%+0.4%-6.4%
Q3 2022+9.1%+11.9%+31.8%
Q3 2021+9.1%+11.9%+31.8%
Q2 2022+0.2%+2.5%-9.0%
Q2 2021+0.2%+2.5%-9.0%
Q1 2022-1.5%+8.9%+5.0%
Q4 2021-1.5%+8.9%+5.0%
Q4 2020-1.5%+8.9%+5.0%
Q1 2021-1.5%+8.9%+5.0%

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