NYSE$GHC

Graham Holdings Co - Class B · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported a significant increase in net income and revenue, driven by strong performance in education, television broadcasting, manufacturing, and healthcare divisions.

Graham Holdings Company reported a substantial increase in net income attributable to common shares for the second quarter of 2021, reaching $115.4 million ($22.99 per share) compared to $18.9 million ($3.60 per share) for the second quarter of 2020. Revenue also saw a significant increase, rising by 23% to $801.2 million. The company's operating income increased to $37.6 million, driven by improved results across multiple divisions, including education, television broadcasting, and manufacturing. The acquisition of Leaf Group Ltd. in June 2021 also contributed to the company's overall performance.

  • Net income attributable to common shares increased to $115.4 million ($22.99 per share) for Q2 2021, compared to $18.9 million ($3.60 per share) for Q2 2020.
  • Revenue increased by 23% to $801.2 million, driven by growth in education, television broadcasting, manufacturing, healthcare, and other businesses.
  • Operating income rose to $37.6 million, driven by improved performance in education, television broadcasting, manufacturing, and other businesses.
  • The acquisition of Leaf Group Ltd. in June 2021 contributed to the company's revenue in the 'other businesses' segment.

Headline financials

Total Revenue

$801M

Previous: $653M+22.7%
EPS (adj)

$3.88

Previous: $7.65-49.3%
Capital Expenditures

-$27.5M

Previous: -$40.2M+31.6%
Free Cash Flow

$87.9M

Previous: -$21.4M+511.4%
Net Income

$115M

Previous: $18.9M+511.8%
Operating Income

$37.6M

Previous: $5.88M+539.6%
Gross Profit

$8.16M

Previous: $653M-98.7%
Cash & Equivalents

$115M

Previous: $260M-55.9%
Total Assets

$6.58B

Previous: $5.67B+15.9%
Stock-Based Comp

$1.58M

Previous: $1.57M+0.5%

Revenue & EPS history

Graham Holdings · Revenue · Quarterly

$801M

Q2 2021+22.7%vs Q2 2020
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Graham Holdings · $656M total across 4 segments · Q2 2021

  • Education
    $340M+2.0%
  • Manufacturing
    $141M+69.5%
  • Television Broadcasting
    $120M+19.1%
  • Healthcare
    $54.7M+11.2%

Forward guidance

The COVID-19 pandemic is expected to continue to have a significant adverse impact on several of the Company’s businesses for the remainder of 2021.

Headwinds

  • The COVID-19 pandemic and measures taken to prevent its spread, such as travel restrictions, shelter in place orders and mandatory closures, significantly impacted the Company’s results for 2020 and the first six months of 2021, largely from reduced demand for the Company’s products and services.
  • This significant adverse impact is expected to continue for several of the Company’s businesses for the remainder of 2021.
  • 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 is unknown.
  • The degree to which financial and operating results will be negatively impacted is unpredictable.

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 2021

Historical avgQ2 2021

-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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