NYSE$FIX

Comfort Systems USA Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported increased earnings and strong cash flow despite challenges from the global pandemic.

Comfort Systems USA reported a strong third quarter with increased earnings and phenomenal cash flow, despite the challenges of the global pandemic. Revenue slightly increased, and the company anticipates full-year results will surpass record results from 2019.

  • Net income for the quarter was $50.1 million, or $1.36 per diluted share, compared to $36.2 million, or $0.98 per diluted share, for the same quarter last year.
  • Revenue for the quarter was $714.1 million, up from $706.9 million in the prior year.
  • Operating cash flow was $52.6 million, compared to $73.1 million in the prior year.
  • Backlog as of September 30, 2020, was $1.43 billion, compared to $1.61 billion as of September 30, 2019.

Headline financials

Total Revenue

$714M

Previous: $707M+1.0%
EPS (adj)

$1.19

Previous: $0.98+21.4%
Backlog

$1.43B

Previous: $1.61B-11.2%
Operating Cash Flow

$52.6M

Previous: $73.1M-28.0%
Capital Expenditures

-$19.5M

Previous: -$22.6M+14.1%
Free Cash Flow

$30.6M

Previous: $13.6M+125.3%
Net Income

$50.1M

Previous: $36.2M+38.2%
Operating Income

$56.7M

Previous: $53.4M+6.1%
Gross Profit

$147M

Previous: $143M+3.1%
Cash & Equivalents

$70.5M

Previous: $40.4M+74.8%
Total Assets

$1.68B

Previous: $1.47B+14.3%
Stock-Based Comp

$761K

Previous: $182K+318.1%

Revenue & EPS history

Comfort Systems USA · Revenue · Quarterly

$714M

Q3 2020+1%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The Company expects full-year 2020 results will significantly surpass record results in 2019, with solid profitability and cash flow in 2021. However, incremental challenges are expected during the first half of 2021 due to potential delays in project bookings and starts.

Tailwinds

  • Full-year 2020 results will significantly surpass record results in 2019.
  • Confident of solid profitability in 2021.
  • Confident of solid cash flow in 2021.
  • Bidding activity is good.
  • Service operations are near pre-pandemic levels with strong profitability.

Headwinds

  • Potential for air pockets resulting from delays in project bookings.
  • Potential for air pockets resulting from delays in project starts.
  • Expect incremental challenges during the first half of 2021.
  • Continue to prepare for a wide range of economic circumstances over the coming quarters.
  • Decline in backlog reflects delays in bookings and starts at certain of our large project companies

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

+2.4%

Avg return

Earnings day

+4.6%

Avg return

5 days after

+7.1%

Avg return

30 days after

59%

39 / 66 earnings

Positive

+18.9%

Q3 2025

Best reaction

-21.7%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.5%-2.8%+3.0%
Q4 2025+6.3%+5.6%-1.2%
Q3 2025+18.9%+22.5%+8.4%
Q2 2025-1.3%-1.3%+9.3%
Q1 2025+5.6%+5.7%+25.3%
Q4 2024-4.7%-1.9%-7.8%
Q3 2024-10.1%-3.8%+19.2%
Q2 2024+3.3%+1.9%+12.9%
Q1 2024-2.2%+0.2%+10.9%
Q4 2023+15.4%+20.4%+33.0%
Q3 2023+15.6%+19.5%+30.7%
Q2 2023-1.3%+3.9%+8.5%
Q1 2023+12.9%+11.9%+13.7%
Q4 2022+10.0%+18.8%+11.5%
Q3 2022+7.5%+11.8%+14.3%
Q2 2022+8.3%+16.0%+12.7%
Q1 2022+2.1%-0.3%+8.7%
Q4 2021-3.7%+0.2%+2.6%
Q3 2021+4.2%+8.2%+14.9%
Q2 2021+0.7%-1.7%+2.2%
Q1 2021+0.2%+3.5%+1.1%
Q4 2020-3.0%+4.1%+17.5%
Q3 2020-14.4%-16.9%-6.7%
Q2 2020+16.8%+21.0%+24.9%
Q1 2020+14.2%+4.9%+28.7%
Q4 2019-6.2%-6.4%-28.6%
Q3 2019+10.1%+10.0%+7.6%
Q2 2019-21.7%-19.5%-30.8%
Q1 2019-6.0%-6.1%-14.5%
Q4 2018+5.4%+4.7%-2.0%
Q3 2018+9.3%+11.3%+5.6%
Q2 2018+12.8%+15.2%+17.8%
Q1 2018+5.0%+0.8%+11.5%
Q4 2017+0.5%+1.3%-2.3%
Q3 2017+15.7%+20.7%+14.9%
Q2 2017-7.3%-8.0%-9.3%
Q1 2017+0.5%+1.6%-4.3%
Q4 2016+14.7%+13.2%+3.7%
Q3 2016+5.5%+2.8%+25.1%
Q2 2016-4.7%-8.6%-10.0%
Q1 2016-7.6%
Q4 2015+4.8%
Q3 2015+4.9%
Q2 2015+13.3%
Q1 2015+0.2%
Q4 2014+11.5%
Q3 2014-2.9%
Q2 2014-4.5%
Q1 2014-0.5%
Q4 2013-0.8%
Q3 2013+0.5%
Q2 2013+4.8%
Q1 2013+0.3%
Q4 2012+1.3%
Q3 2012-2.4%
Q2 2012+2.5%
Q1 2011-1.7%
Q1 2012-1.7%
Q4 2011-7.1%
Q4 2009-7.1%
Q3 2010-5.2%
Q3 2011-5.2%
Q2 2010+14.7%
Q4 2010+14.7%
Q2 2011+14.7%
Q1 2010-15.9%

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