NYSE$GHC

Graham Holdings Co - Class B · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported net income attributable to common shares for the third quarter of 2020.

Graham Holdings Company reported net income attributable to common shares of $77.6 million ($15.22 per share) for the third quarter of 2020, compared to $43.1 million ($8.05 per share) for the third quarter of 2019. Revenue for the third quarter of 2020 was $717.0 million, down 3% from $738.8 million in the third quarter of 2019. The operating income increase is driven by higher earnings in education, television broadcasting and healthcare, partially offset by declines in manufacturing and other businesses.

  • Net income attributable to common shares increased to $77.6 million in Q3 2020 from $43.1 million in Q3 2019.
  • Revenue decreased by 3% to $717.0 million in Q3 2020 compared to $738.8 million in Q3 2019.
  • Operating income increased to $40.2 million in Q3 2020 from $16.3 million in Q3 2019.
  • COVID-19 pandemic significantly impacted the company's results, largely from reduced demand for the company’s products and services.

Headline financials

Total Revenue

$717M

Previous: $739M-3.0%
EPS (adj)

$6.28

Previous: $7.94-20.9%
Capital Expenditures

-$56.1M

Previous: -$75.7M+25.9%
Free Cash Flow

$21.5M

Previous: -$32.6M+166.0%
Net Income

$77.6M

Previous: $43.1M+79.9%
Operating Income

$40.2M

Previous: $16.3M+147.4%
Gross Profit

$717M

Previous: $739M-3.0%
Cash & Equivalents

$296M

Previous: $142M+107.8%
Total Assets

$5.81B

Previous: $5.49B+5.9%
Stock-Based Comp

$1.62M

Previous: $1.53M+6.4%

Revenue & EPS history

Graham Holdings · Revenue · Quarterly

$717M

Q3 2020-3%vs Q3 2019
Beat estimate in 8 of 12 quarters(67%)
ActualEstimate

Revenue by segment

Graham Holdings · $594M total across 4 segments · Q3 2020

  • Education
    $302M-15.4%
  • Television Broadcasting
    $134M+16.2%
  • Manufacturing
    $107M-4.5%
  • Healthcare
    $51.4M+26.4%

Forward guidance

The significant adverse impact is expected to continue for the remainder of 2020 and into 2021. The Company’s management has taken 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 Q3 2020

Historical avgQ3 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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