NYSE$ESAB

ESAB Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Achieved strong financial results with increased sales and core organic growth

ESAB Corporation reported a 6% increase in fourth-quarter sales, reaching $664 million, with an 11% core organic growth. The company's GAAP net income was $59 million, with diluted earnings per share at $0.97. Core adjusted EBITDA rose by 10% to $107 million.

  • Diluted EPS from continuing operations reached $0.97, and core adjusted diluted EPS was $1.05.
  • Sales increased by 6%, with core organic growth of 11%.
  • Net income from continuing operations attributable to ESAB was $59 million.
  • Core adjusted EBITDA increased by 10% to $107 million compared to the prior year.

Headline financials

Total Revenue

$664M

Previous: $624M+6.4%
EPS (adj)

$1.05

Previous: $0.66+59.1%
Total Core Sales Growth

11.0%

No prior period
Capital Expenditures

$18.2M

Previous: $16.7M+9.0%
Free Cash Flow

$73.2M

Previous: $41.9M+74.6%
Net Income

$59M

Previous: $39.4M+49.6%
Operating Income

$78.6M

Previous: $73M+7.6%
Gross Profit

$224M

Previous: $213M+5.4%
Cash & Equivalents

$72M

Previous: $41.2M+74.8%
Total Assets

$3.75B

Previous: $3.46B+8.5%
Stock-Based Comp

$3.43M

Previous: $1.32M+160.8%

Revenue & EPS history

ESAB · Revenue · Quarterly

$664M

Q4 2022+6.4%vs Q4 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

ESAB expects core organic growth of 3% to 5% and total core sales growth of 2% to 4% in 2023. Core adjusted EBITDA is projected to be between $420 to $440 million, with core adjusted EPS ranging from $3.80 to $4.00 and cash conversion greater than 90%.

Tailwinds

  • Core organic growth of 3% to 5% expected.
  • Total core sales growth of 2% to 4% expected.
  • Approximately 2.5% growth from acquisitions.
  • Core adjusted EBITDA of $420 to $440 million expected.
  • Cash conversion of greater than 90% expected.

Headwinds

  • Approximately (3.5)% from currency headwinds.
  • No other negatives were mentioned in the provided text.
  • No other negatives were mentioned in the provided text.
  • No other negatives were mentioned in the provided text.
  • No other negatives were mentioned in the provided text.

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 Q4 2022

Historical avgQ4 2022

+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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