NYSE$GHC

Graham Holdings Co - Class B · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported a decrease in net income due to the impact of COVID-19.

Graham Holdings Company reported a decrease in net income attributable to common shares of $18.9 million ($3.60 per share) for the second quarter of 2020, compared to $57.1 million ($10.65 per share) for the second quarter of 2019. Revenue for the second quarter of 2020 was $652.9 million, down 11% from $737.6 million in the second quarter of 2019. The COVID-19 pandemic significantly impacted the Company’s results.

  • Net income attributable to common shares decreased to $18.9 million, or $3.60 per share, compared to $57.1 million, or $10.65 per share, in Q2 2019.
  • Revenue decreased by 11% to $652.9 million, compared to $737.6 million in Q2 2019.
  • Operating income decreased to $5.9 million, compared to $58.0 million in Q2 2019.
  • The COVID-19 pandemic had a significant adverse impact on the Company's results, largely from reduced demand for products and services.

Headline financials

Total Revenue

$653M

Previous: $738M-11.5%
EPS (adj)

$7.65

Previous: $9.36-18.3%
Capital Expenditures

-$40.2M

Previous: -$52.7M+23.7%
Free Cash Flow

-$21.4M

Previous: $4.38M-587.8%
Net Income

$18.9M

Previous: $57.1M-67.0%
Operating Income

$5.88M

Previous: $58M-89.9%
Gross Profit

$653M

Previous: $738M-11.5%
Cash & Equivalents

$260M

Previous: $172M+51.3%
Total Assets

$5.67B

Previous: $5.21B+8.8%
Stock-Based Comp

$1.57M

Previous: $1.62M-3.0%

Revenue & EPS history

Graham Holdings · Revenue · Quarterly

$653M

Q2 2020-11.5%vs Q2 2019
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Revenue by segment

Graham Holdings · $643M total across 5 segments · Q2 2020

  • Education
    $333M-9.4%
  • Television Broadcasting
    $101M-13.6%
  • Manufacturing
    $83.2M-27.5%
  • Other Businesses
    $76.4M-6.1%
  • Healthcare
    $49.2M+21.0%

Forward guidance

The Company expects the significant adverse impact from COVID-19 to continue in the second half of 2020. The Company's management is taking a variety of measures to reduce costs and capital expenditures. The Company cannot predict the severity or duration of the pandemic, the extent to which demand for the Company’s products and services will be adversely affected or the degree to which financial and operating results will be negatively impacted.

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

-0.7%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+0.5%

Avg return

30 days after

42%

28 / 67 earnings

Positive

+8.2%

Q3 2020

Best reaction

-9.4%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.4%-2.0%-4.6%
Q4 2025-1.5%-1.7%-1.6%
Q3 2025-1.3%-2.2%+4.4%
Q1 2025-0.8%+1.5%+2.9%
Q4 2024+0.7%-2.4%-2.1%
Q3 2024+6.8%+6.9%+17.9%
Q2 2024-9.4%-14.0%-2.4%
Q1 2024+3.5%+6.3%+7.3%
Q4 2023-2.8%-1.5%+4.7%
Q3 2023+3.4%+7.0%+10.2%
Q2 2023+1.4%+4.0%+1.3%
Q1 2023-1.6%+1.6%+2.6%
Q4 2022-4.0%-4.4%-12.6%
Q3 2022+0.9%+0.1%-4.8%
Q2 2022-2.6%-3.1%-8.1%
Q1 2022+3.6%+2.6%+4.1%
Q4 2021+2.2%+0.8%+4.0%
Q3 2021+2.0%+2.5%-0.8%
Q2 2021-1.6%-4.6%-8.9%
Q1 2021+2.4%+5.1%+5.0%
Q4 2020-5.4%-5.8%-7.8%
Q3 2020+8.2%+10.1%+17.2%
Q2 2020+2.0%+4.6%+5.4%
Q1 2020-7.4%+1.5%+2.1%
Q4 2019+0.1%+1.8%-28.7%
Q3 2019-2.3%-1.8%-2.0%
Q2 2019-3.6%-7.4%-5.5%
Q1 2019-2.7%-4.3%-8.5%
Q4 2018-1.1%-0.1%+0.4%
Q3 2018+7.1%+9.7%+17.0%
Q2 2018-1.2%+0.9%+0.7%
Q1 2018-2.9%-1.2%-4.2%
Q4 2017-1.9%-2.6%+1.9%
Q3 2017-0.3%-2.5%+2.7%
Q2 2017-3.5%-1.4%-2.8%
Q1 2017-2.0%-1.8%+0.9%
Q4 2016+2.1%+4.2%+9.5%
Q3 2016-5.3%-5.4%+4.3%
Q2 2016+1.0%-1.0%-0.5%
Q1 2016+0.1%
Q4 2015-3.9%
Q3 2015-3.7%
Q2 2015+0.3%
Q1 2015-2.2%
Q4 2014-0.2%
Q3 2014+2.2%
Q2 2014+3.9%
Q1 2014-0.8%
Q2 2013-2.7%
Q4 2013+3.9%
Q3 2013+2.1%
Q1 2013-0.1%
Q4 2012-1.8%
Q3 2012-1.7%
Q2 2012+2.4%
Q1 2012-2.3%
Q4 2011+1.9%
Q3 2011-2.6%
Q2 2011+2.0%
Q4 2008-0.4%
Q1 2011-0.4%
Q3 2009+0.3%
Q3 2010+0.3%
Q2 2009-8.4%
Q2 2010-8.4%
Q4 2010-8.4%
Q1 2010+3.0%

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